There is very little that consumers hate more than haggling at a dealership. After all, that’s why places such as CarMax are as successful as they are. They take the power of negotiation away from customers and the pressure away from car dealers.
However, for those that are searching for a new car and are not frequenting the likes of CarMax, there are some valuable negotiation tips you can take into the dealership with you to help with buying a new car.
1. Get Multiple Quotes
The great thing about the digital age is that getting quotes from multiple dealerships has never been easier. All you have to do is do a little internet research, fill out some contact forms, and wait for dealer to reply with their best prices.
Additionally, you should have a specific car in mind before hitting up the dealerships. Purchasing a new car is one of the biggest financial decisions you will make in your life, save for buying a house. Know what your limits are, what you are capable of driving, and what you can afford.
And, if you happen to be buying a new car for your teen driver, make sure they have practiced the DMV driving test thoroughly and can safely drive the cars you are getting quotes for. Too much car can lead to big problems for inexperienced teen drivers.
2. Have a Budget in Mind
Walking into a dealership with a firm price in mind is one of the best things you can do. This will relieve some of the pressure that will be applied to you by dealers hoping you’ll upgrade even if only a tiny bit.
Remember, buying a car is only part of the process. You have to consider the length of the loan, the interest rate, and new insurance premiums when it comes to making such a large financial decision.
In the end, your best bet is to not negotiate for anything that comes in above your budget. Do not engage in sneaky sales tactics and find yourself paying far more than you want to.
3. Look into Discounts
Dealerships offer many incentives in order to secure sales. Some of the most popular discounts include:
- Return customer
- AAA member
- Holiday sales
In addition, you may even be able to secure a discount if someone who has previously purchased a car from the same dealership refers you.
Look into what sales and discounts the dealership has available before going so you have some leeway to work with. Not all dealers will openly offer such discounts as this will affect the purchase price and their overall commission.
4. Know When to Walk
You are not obligated to buy anything from anyone when you are in a dealership. Unfortunately, the excitement of buying a new car, the pressure from experienced salespeople and the worry that you may not find a better deal, tend to creep in during sales discussions and can force you to rush a decision.
Buying a new car can be a stressful ordeal. However, having a plan of action is going to help you with any negotiations a dealer tries to throw your way, or better yet, negotiations you throw their way.