Dealing With Car Dealers
When you are
in the
market for a
new or used
car, and
intend on
purchasing
from a
dealership,
you need to
be prepared.
Being
prepared
means
knowing the
in-and-outs
of
negotiating.
If you do
not learn
the 'art' of
haggling,
you will
wind up
paying more
for your
car; thus
paying more
money in
interest.
One of the
main ways to prepare yourself for dealing
with pushy auto dealers is to research the
vehicle you are interested in. Knowing the
details and value of a car will give you
good leverage when it comes to
negotiating
the final buying price of the
automobile.
Below are some additional tips that you
should keep in mind when looking to purchase
a
new or used
car from a dealership. It is also very
important that you educate yourself with the
terms
associated with car purchases from
dealerships.
Tips to dealing with car dealers:
1. Dealers
look to earn a profit between 10 - 20%. This
means that the bottom line price they want
you to pay is about 10 - 20% higher than the
invoice price and 10 - 20% lower than what
the sticker price of the car is.
2. If you are steadfast about buying an
exact make and model of a car, but the car
you are interested in is not available,
think about ordering it, or traveling to a
same make dealership at a different
location. You don't want to settle on buying
a car that is not exactly what you want.
Dealers are good at 'selling' you what they
have, which may even wind up costing you
more than the car you want.
3. If you are flexible in what you want out
of your new car, and the dealership does not
have your first choice, you may be able to
get a really good deal on your second
choice. But, don't let the dealer know that
you are interested in settling for something
that is not your first choice. Doing this
will eliminate your negotiating leverage.
4. Always stay cool and calm while in the
dealership. The dealer will take advantage
of your excitement and/or nervousness and
likely look to get more money out of you.
5. Never hesitate to walk away from a
dealership if you not comfortable with the
salesman, or if you do not like any of the
cars that they have to offer.
6. Ask the dealer about extra factory
incentives. It is very common that dealers
will be able to offer 'extras' below the
factory invoice price as a 'throw in' when
selling cars.
7. If you are interested in financing the
car, make sure you come to an agreement
about the final price of the car before you
discuss what you want to pay as a monthly
loan payment. Most dealers will look to
'work' the numbers in their favor, resulting
in you paying more for your car. Also, if
you are looking to finance with a dealer,
beware of a
pre-computed car loan that uses the Rule of
78 formula.
Dealers may
offer you a 0% financing deal. You will want
to
learn more
about this offer before you commit.
8. Know what you have to pay for, and what
you do not have to pay for. When buying any
type of new or used car, you are required to
pay for licenses, taxes, destination and
registration charges. However, you are not
obligated to pay for delivery, handling,
sales charges, etc.. You do not have to pay
for any fees that are not listed above as
obligatory. If a dealer tries to make you
pay them, demand not to. If they still look
to charge you any of these unwarranted fees,
you may have to walk away from the deal.
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