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New Car Buying - Tips to Help You Get the Best Deal
When I bought my first new car, I was just out of college and felt
flush with cash. I had just started working full time and I was
enjoying my new salary. After donating my old clunker of a car to
charity, I confidently strolled into the Volkswagen dealership to
pick out a brand new Jetta.
The salesman must have heard cash registers going off in his
head as he looked me over and saw me for the easy mark I was.
I'm not proud to admit it, but I got taken.
I bought a car alright, but I ended up with more extra features than
I needed or wanted. I also paid a lot more than I had planned.
But the next time around it was a whole different story. I had picked
up some new car buying tips over the years and I was able to use
them to my advantage to get myself a great deal.
You can do the same if you follow these 6 simple new car buying tips:
1. Know what you want before you even get close to the dealership. Research the different car models online so you can walk into the
dealership knowing exactly what you want. Skilled salesmen can easily talk
undecided buyers into unnecessary upgrades and features.
2. Do your homework. There are plenty of websites that offer new car reviews,
pricing, and comparisons of different models. The more knowledge you have the
better informed your choice will be. The dealer's invoice price is especially
important. Dealers hate when you know how much they paid for the car because
it takes away one of their biggest edges in negotiating for car prices.
3. Dealers love to combine the purchase price, finance charges, and value
of your trade-in into one number. This way they can play with numbers and try
to confuse you into thinking they're giving up more than they are. You can keep
them from doing this by insisting to negotiate each individually.
4. You can take away one of the dealer's biggest bargaining chips if you secure
financing ahead of time. Go to your bank or credit union and secure a new car loan
before you head to the dealer. This lets you focus strictly on the price of the car.
Once you've agreed on a price, you can always see if the dealer will beat the rate you
5. Timing is key. You want to hit the dealer when he is most likely to give you a
good deal. The ideal time is just before the next year's models arrive as they will need
to make room for the new stock. You can get a great deal on the previous year's model.
The end of the month is also a good time because salesmen who are short of their monthly
quota will be pushing hard to make sales. Also, go late at night an hour or two before
the dealership closes. They'll be more anxious to close the deal so they can go home and
see their families.
6. Above all, whenever you are negotiating new car prices with a dealer you must continuously
remind yourself..."This guy is NOT my friend." Don't fall for the old "I really want to give
you a good deal. It's my boss that's taking a hard line here."
The salesman's goal is to get you to pay as much money as possible. He doesn't want to be
your friend and he doesn't want to invite you to his house for a barbecue. All he sees
when he looks at you is dollar signs. Remember that, and take everything he says with a
grain of salt.
Follow these simple new car buying tips and you'll drive off the lot knowing you got the best deal possible.
New Car Buying Advice From an Ex-Car Salesman!
I had been thinking about buying a car for two years. After another $1000 of repairs on my 1994 Buick Roadmaster (purchased new) with over180,000 miles, it was time. In the past, when I sat in a new car (at dealers and at auto shows), the comfort did not match my Buick's "sofa like" seat so I put off buying. During the past 24 months I determined the make and model but not the color; thus one Friday my plan was to check the colors at a local dealer. Later, the best price would be obtained via online bidding - a proven way to obtain a competitive price.
After arriving, the salesman took some basic information and asked how much time was available. My response was 15 to 30 minutes. Four hours later, I left without buying because the "deal" was on a car with the light interior not the dark that was my preference. In retrospect, what transpired in those four hours was a demonstration of classic car sales techniques at their best. This realization came to light a few days later when watching a movie where the sales manager highlighted the tricks of the trade, he gloated on how to manipulate the customer. After the movie, I said: "this is exactly what happened to me". Of the 14 techniques used during my four-hour ordeal, all were referenced in the movie (except in the movie a secret microphone captured the conversation between husband and wife after the salesman left the room - this did not occur). The amazing thing is that I did not realize the sales tricks during the process. What were the techniques?
First, in the parking lot the salesman turned his back and said follow me to the office and I did. Next, he obtained keys for the model of interest and positioned the car so I could sit in it. Although, I have driven the model before, he insisted it was no problem. After 15 minutes we returned to the office to say goodbye, how naive.
The third technique was offering a deal that could not be refused. He quoted a trade offer two times the value of my car and eight thousand dollars off the list price! My thought, this is too good to be true. My response, need to check with the wife. No problem, he offered the use of his cell phone, technique four, remove obstacles. Now the hook was set, he had a possible buyer. After driving a second car of my preferred color, we were back at the office.
My trade was the next topic. He filled out the paper work to determine the value via an online wholesale system. He offered one thousand more than the value which somehow made me feel good even though it was one thousand less than his first offer. This was trick five. Keeping my keys, trick six.
It was next revealed that the eight thousand discount first quoted was on a demo with 4,000 miles; thus we discontinued negotiations on that car, rather, the focus shifted to the one I just drove. He said they wanted to close the first sale of the day to get things rolling, thus a big discount, trick seven. The next question was what price would close the deal; He asked me to sign on a scratch pad how much I would pay, trick eight. Any amount was ok, if it were unreasonable, he would fight with his manager for me, technique nine, the salesman was on my side.
The manager arrives. He says he would be losing money on this deal, " it cost more to produce the car than you are offering". Obviously, unreasonable offers were not acceptable. He then starts the negotiations with the msrp and drops a thousand; our prior negotiations were lost somehow, trick ten. Since the car has more options than requested, a lecture on their value follows. When I request a basic version, the manager actually gets mad implying how much better discount is available with options, trick eleven - intimidation. After the manager leaves, the salesman uses trick twelve, ten thousand down with three year payments and list price. This came out of the blue since from the beginning the premise was a cash deal. However, it must be a standard practice.
The manager returned with a better offer, his lowest possible price. Actually he is losing money and will have to take the loss from his department budget, trick thirteen. Technique fourteen, a one-time offer, is highlighted by the question from both sales staff: do we have a deal at this price? By this time, I am not sure if the deal is reasonable since so many numbers have been discussed. The manager places a gong on the table to announce the first deal of the day. I am holding the pen to sign when my gut says no, wait for the exact car - do not compromise on the desired interior; and, do not succumb to these pressure tactics. Somehow I manage to obtain my keys and leave as an exhausted individual.
My story ends when I purchase the exact car I wanted from another dealer at a good but not great price, the negotiation involved an offer and a counter offer via email. Since my nerves were shot; I could not tolerate any more hassle or pressure. If acknowledging these crafty and subtle techniques will make the job of buying a car easier for someone, then my experience has some value.
Jim Johnson, July 2007