How to Get the Best Deal at a Car Dealership

Preparation and timing can help you buy a new car at the lowest possible price.

Few people enjoy the prospect of visiting a dealership to purchase a new car--the combination of aggressive salespeople and confusing car pricing can make buying a car a frustrating experience. You may also wonder if you'll find the same car at a lower price after you have made your purchase. However, using strategies to obtain the best deal on a new car through a dealership can help take the pain out of car shopping.

Instructions

1. Obtain your credit reports from TransUnion, Experian and Equifax, as well as your credit score from FICO or a third-party provider. Knowing your credit score can help you determine the types of financing available to you. If you have a credit score above 700, low financing interest rates can help minimize your vehicle purchase costs over the life of the loan or lease.

2. Determine your target purchase price before you ever visit a dealership. Review manufacturer suggested retail prices online and determine how much you want to save on your purchase.

3. Visit several dealerships that carry the make, model and style of car you want to purchase. Although all dealerships pay the same invoice price when purchasing from the car company, dealer markups vary considerably. Dealerships that are motivated to make sales may charge lower markups on their inventory.

4. Ask the dealer about the invoice price of the vehicle, plus destination fees and any other charges the dealership incurs when purchasing a car from the manufacturer. Knowing how much the dealer paid for the vehicle can give you a starting point for price negotiations.

5. Determine the trade-in value of your current vehicle if you plan to trade the car in as part of a new car purchase. Kelley Blue Book lists the approximate trade-in value of used cars--printing out the Kelley Blue Book report on your current vehicle can help prevent the dealership from undervaluing your trade-in.

6. Visit dealerships on major holidays. Dealerships commonly offer special pricing on holidays to attract customers and stimulate sales.

7. Plan your vehicle purchase in autumn. In September and October, dealerships typically begin taking delivery of vehicles for the next model year and are motivated to clear out existing inventory to make room for the new cars. This may provide additional leverage when negotiating a vehicle purchase.

8. Visit the dealership on Friday or Saturday evening, test drive the vehicle you want to purchase and tell the salesperson you want to think about the purchase until Monday. Saturday typically marks the end of the sales week for dealerships, so the salesperson or her manager may offer to reduce the price if you agree to complete the purchase instead of waiting until the following week.

Tips & Warnings

• Bring a friend with you when shopping for a new car. A companion who does not have a stake in the purchase can help keep you from making an impulse decision.

• Avoid becoming so emotionally attached to a car that you cannot walk away if you cannot negotiate your target price.

References

• "Car Buyer's and Leaser's Negotiating Bible"; W. James Bragg; 2004
• "Don't Get Taken Every Time: The Ultimate Guide to Buying or Leasing a Car"; Remar Sutton; 2007

Resources

• Read this Article in Spanish
• Kelley Blue Book: Home