When considering that 15.5 million cars and light trucks were sold in the U.S. last year, you can tell that Americans love their vehicles.
Many people rely on dealerships for their new cars. While consumers don’t necessarily trust car dealerships – or those who work there – they’re a necessary evil nonetheless.
A survey announced earlier this year shows that around one-third of American car shoppers have been the victims of deceptive selling, hidden expenses, and disreputable salespeople. It adds that 76% don’t believe car dealerships are transparent about pricing.
Love-Hate Relationship
While many Americans are wary about going to car dealership lots and dealing with ravenous wolves masquerading as salespeople, they see it as a must to get a new car.
Where you buy a car is entirely your business. But if the plan is to go to a car dealership and get a new vehicle, you might as well learn a thing or two about how to get the best deals. That’ll make the process worth it.
So, with that said, here are 15 tips for getting the best price possible for the vehicle you want.
Research, Research, and More Research
Your first order of business is to conduct research. Check out resources like Edmunds or Kelley Blue Book to arm yourself with the information needed to negotiate with car salespeople confidently. They’re looking to separate you from as much of your money as possible. Your goal, meanwhile, is to get not just a good deal but a steal of a deal.
When you know the fair market value of any vehicle on your wish list, you can phone around to see what prices different dealerships are seeking.
Shop for Financing Before Leaving Home
Don’t get ahead of yourself. Before hopping into your car, driving to the car dealership, and going head-to-head with a salesperson, you should shop around for financing.
It’s in your best interests to get pre-approved for a car loan so that you have some leverage and negotiating power. If you opt for the dealership’s financing, you’ll pay more than if you secure an auto loan independently from a bank or credit union. That’s why getting pre-approved is best.
Research the Invoice Price
Knowledge is power when negotiating the best possible price for a new car. So, learning the invoice price is key. When you understand what the car dealership paid for the vehicle, you’ll have more confidence if they tell you they’ve given their best and final offer. They have to make some profit, after all. But that doesn’t mean you must be fleeced in the process.
Consider End-of-Month or End-of-Quarter Timing
Another way to get the best price for a new car is to time things correctly. For instance, you’re more likely than not to get great deals if you buy vehicles at the end of the month or quarter.
The reason is that those are the periods when car salespersons are looking to reach or exceed sales targets. They’ll be in a wheeling-and-dealing state of mind, which can mean a sweet price cut for you.
Consider Manufacturer Rebates and Incentives
Don’t forget about manufacturer rebates and incentives. When doing your research, look for this information. They could translate into a big discount that lets you drive off the lot in a new car for a steal of a deal.
Wait Until the Year Concludes
Another way to get the best possible deal on a new car is to wait until the end of the year. When the year is coming to a close, many car dealerships will want to sell as many of the current model year vehicles before the arrival of new car models. There’s only so much space.
So, if you’re strategic with your car buying and play your cards right, you might get a final offer from a dealership that you can’t refuse.
Be Flexible About Different Models
One way to sabotage your goal of scoring a sweet deal is by being inflexible. You might have your eyes on a specific make, model, and trim. While there’s nothing wrong with knowing what you want, having some flexibility might open up more room to negotiate. You’ll have to figure out what you must have versus what you can accept.
Get Multiple Quotes
It’s best to get at least three quotes when seeking a contractor. You’ll also want to use that rule of thumb when looking for a new car.
Contact three or more dealerships to get quotes on the car you’re after. You can use the information you get to negotiate the best possible price.
Display Patience
Nothing gets car dealership employees salivating and licking their chops more than consumers who are giddy about buying a car.
If you’re in a hurry and can hardly wait to put pen to paper and drive off with a new vehicle, your excitement might be used against you. You’re better off taking things one step at a time. Tell the salesperson you want to go home and sleep on it. You may find the dealership is more open to sealing the deal when you’re not in a rush.
Consider Selecting a Vehicle in Stock
Another way to get a great deal on a new car is to be open to purchasing a vehicle already on the dealership lot. When talking to a salesperson, they might be more open to giving you a better deal if you buy a car physically on the lot over one that will have to be ordered and delivered.
Unless you insist on an exact model, trim, and color—and have no desire to compromise—a car in stock could be your ticket to a steal of a deal.
Turn Down Extras and Add-Ons
Another way to reduce the cost of a new car is to decline any extras or add-ons that car dealerships typically use to inflate the purchase price. Just say “no” to an extended warranty, paint protection, rustproofing, interior fabric protection, and other things they offer.
You can likely get these things done later by other service providers for much less than the car dealership charges.
Go About Trading in Your Car the Right Way
When trading in your vehicle, get the best value for what you have. That means a couple of things. On the one hand, you should research to get a good ballpark figure of what your trade-in vehicle is worth. On the other hand, you should treat the negotiations for a new car and the negotiations to sell your old vehicle as two separate transactions.
You’ll have better leverage when you treat the two processes as separate transactions rather than combine them. Doing the latter could mean getting virtually nothing for your trade-in since the car dealership staff could trick you by adding extra fees to negate whatever value you should get from trading in your car.
Know When to Hold ‘Em and When to Fold ‘Em
If you’re engaged in intense negotiations and calmly announce you’re willing to walk unless the salesperson is willing to budge, ensure you’re okay with walking. Saying you’ll walk but keeping your rear end firmly planted in your seat will signal that you’re only bluffing.
But respectfully getting up and walking could be one of the strongest negotiation tools you have.
Negotiate Firmly But Respectfully
While you don’t want to be a pushover, that doesn’t mean you must push people over with your words or attitude. You’re more likely to work out a good deal if you’re respectful.
If they tell you not to let the door hit you on the rear end when you leave, head to another dealership offering better service.
Ask About Employee Pricing or Partner Discounts
Yet another way to potentially get a great deal is to ask any dealerships you patronize if they offer any employee pricing or partner discount promotions to customers who are members of certain associations. If the answer is “yes,” you may get a much better deal on a new car.
There Are Ways to Get a Great Deal on a New Vehicle
If you want to score a great deal on a vehicle, remember these 15 tips. You’re more likely to get what you want at a price you want when you understand the dos and don’ts of the process.
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