You’re soon to buy a new ride, and you are geeked. For the last few weeks now, you’ve been envisioning yourself rolling in the car you’ve painstakingly picked out. But there’s just one thing: you haven’t bought the car yet, and you aren’t relishing the prospect. Negotiations are a pain, and you always feel like you’re going to be one-upped.
With a little work, though, you can have more confidence. Here’s how to get the best price on a new car.
Be Ready
In truth, snagging the best deal on a vehicle begins well before you visit a dealership or other car seller. You need to show up with as much info as you can about the car you’re seeking. It’s also helpful to already be set up with pre-approved financing.
Make sure you know what your budget is so that your new car fits within it. But also take a clear-eyed look at your needs. When you begin shopping, you can have confidence in what YOU want – not what the seller is peddling.
Be Informed
After you’ve settled on a ride, learn all you can about it, from the MSRP to what the dealer likely paid for it. Do some poking around online to determine whether your vehicle is currently in demand. If there’s no great clamor for it, you may be able to swing a better price.
Line Up Financing
It’s always good to be able to extract financing from the car deal package the seller hopes to put together. Getting a preapproved car loan from an outside lender not only makes negotiations less complicated it also makes it more likely you’ll get a favorable deal. Rather than pitching you a loan that mostly benefits the dealer, they’ll have to top the offer you have in hand. Try your bank or credit union.
Hunt for the Best Deals
You can also save money outside of negotiations by going with a cash-back incentive or special low-interest financing. The former lowers the car’s price, while the latter decreases what goes to interest. Manufacturers sometimes offer these options when sales are slow or they’re near the close of their product cycles. Check out the best car buying sites.
Even if you’ve nabbed a deal, you still want to negotiate for a good price. You can still do that in most cases, contrary to what you may have been told.
Head to the Dealership
You’ve done everything else, so now it’s time to get to dealerships, both online and in person. Set aside sufficient time for a test drive and check out several dealers to get the best deal. Again, make sure you’re prepared. Showing up at a store or private-seller meeting without having done due diligence is a primary reason people pay more than they should for their cars.
Time it Right
If you find a dealership that hasn’t met its monthly, quarterly, or year-end goals, you may be able to benefit. That’s because some car companies offer dealerships bonuses if they’ve met sales quotas.
The scramble to meet those goals usually heat up on the last weekend of the month, quarter, or year. However, Saturday or Sunday may not be the ideal days to shop since stores are usually busy and, if it appears you may be a tough sale, you may not get all the attention you’d like. Stick to shopping during the week – but close to the quota deadlines.
How to get the best price on a new car basically boils down to preparation. If you’ve done all your homework, all your legwork, you dramatically raise your prospects of coming out a winner. Get to work today.