How to Get the Best Deal on a New Car
When planning to buy a new car, timing can mean everything. Everyone wants to get the best deal possible on a new vehicle. Even if you are not a great talker, the key is to do your homework and always negotiate the price. Don't stress; getting a deal on a new car is easier than you think.
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Instructions
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Know up front how much you are willing to pay for the vehicle of your choice. You will feel like you got a great deal if you stay under this number no matter what.
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Trade in an old vehicle, but first find out how much your trade-in is worth. Check the Kelley Blue Book for this information (see Resources). You need to know the amount of equity that you have in it for negotiating.
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Compare prices with other dealerships on similar vehicles, if possible, even if you must travel a bit to a further dealership. If you let them know that you are from out of town, you may be eligible for a mileage discount. Let them know that you came to them looking for a better deal. If they cannot give you a better deal, then simply tell them you will go back and buy a car from the other place near your home. Depending on how bad they want to sell the car, they will rework their numbers and come down on their price.
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Do your serious shopping near the end of the month. For most dealerships, sales quotas end at the end of the month. What does this mean? The dealership salespeople are more desperate to sell a car before the month ends. Many will do almost anything reasonable to move another car off the lot to make their sales numbers look better. Their sales numbers are important for keeping their jobs.
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Use any discounts that may apply, if you are eligible, such as a military discount for military employees or employee discounts if you work for the dealership company. Sometimes you can negotiate getting an employee discount without being an employee. Some car dealerships also run employee discount sales, if you want to wait for one of these.
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Tips & Warnings
Sticker prices can always be negotiated.
Sometimes it is better to walk away and make them chase you for a deal. If they want to sell the car bad enough, they will accommodate you with more, whether it be to continue cutting price or with incentives.
Keep the car or take it back. If you have the dealership to deliver a new car to your residence, you have longer to decide whether you want to keep it than if you drive it off of their lot (approximately 72 hours versus 24 hours). Check with the salesperson for the specific amount of time for returning the vehicle.
Sometimes rebates are not all they are cracked up to be. Do the math. If it does not save you much money on your car payment, it is better to work on pocketing the rebate amount. For example: For a $5,000 rebate, this may save you only $20 per $1,000 dollars. This is only $100 dollars off your total car payment. Compare circumstances, which will help your situation more.
Do not announce things to the dealer like, “I’m paying with cash” or your likes and dislikes about the new or old vehicle. If you do this, you may end up paying more for those options (see Resources for more negotiating tips).
