Contrary to popular belief, the majority of car dealers prefer straightforward and honest negotiations. They are accustomed to working with educated car buyers and willing to offer bargain prices if it means making a sale. Today, consumers have access to all the information needed to get a rock-bottom price for a new car - dealers who know this rarely resort to scams.
Education is key, if you want to find a great deal on a new car or truck. Find qualified dealers in your area that are willing to negotiate a lower price. One of the quickest ways of doing this is to request a free price quote from an online independent new car pricing service such as CompetingCarPrices.com.
Despite through research and planning you still may run across a tricky car salesman. Watch out for the following tricks and avoid getting cheated!
Don’t Let the Dealer Steal Your Trade-In
Learn the current value of your trade-in before visiting the dealership. There are many online resources where you can learn used car values in minutes. Print this information out and take it with you to the dealership.
When negotiating the purchase price of your new car, do not let the dealer factor in the value of your trade-in. Tell the dealer you prefer to discuss only the complete price of the vehicle. Once you have settled on a number, and then deduct the value of your trade-in. Your trade-in should be considered as part of the down payment on your new car.
Avoid Taking the Low Payment Bait
Of course low monthly payments sound tempting! Who wouldn’t want to have more money on hand every month? However, low payments often mean higher overall cost. Look closely at the offer, do the math and determine which will cost you more in the long run.
If the dealer brings up monthly payments during the negotiation process, ask that you discuss only the price of the vehicle. There will be time to work on a payment plan once you’ve moved on to financing.
Confirm the Vehicle Price Includes All Fees
When you are negotiating the purchase or lease price of your new vehicle make sure this price includes all fees. Often some dealers will tack these on at the last minute at great surprise to the consumer. Once you have confirmed fees are included review each carefully, make sure all are clear and logical, if not request they be removed.
Avoid Paying for Unneeded Coverage
Some dealers will try to sell you warranty or insurance coverage, saying that it is required for financing. Learn or ask about the factory warranty that comes with your vehicle, usually this will cover your car for as long as is needed. Also learn if your current insurance company provides a better rate, this can save more monthly.
Know Your Financing Options
Dealerships often advertise incredible financing options to entice new car buyers into the dealership. These are usually only available to those who qualify, meaning they have exceptional credit. If your credit score is less than perfect, it is better to research offers from outside lenders such as banks or credit unions.