How to Get the Absolute Best Price When Buying a Car
Buying a new car can be a daunting process. Many people are intimated by the sales culture at the dealership, while others are unfamiliar with the steps necessary to buy a car online successfully. As with most large purchases and investments, the best way to approach car buying--to ensure you get the lowest price possible--is to do your research and be prepared to avoid the common pitfalls of buying a car.
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Things You'll Need
- Credit report
- Printout of listing prices
- Prearranged finances
- Personal list of points
- Invoice price
- True market value
Instructions
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The process
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Decide which car you want. It's important to feel 100 percent sure about the make and model of the vehicle you want before comparing prices.
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Buy copies of your credit report and score. Most reputable car dealerships will require a credit check, and you can save yourself time by having your results on hand.
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3
Shop around. Once you've decided which car you want, get the listing prices from five to 10 dealerships. If you aren't confident to ask for them face-to-face at a dealership, many car dealers now offer online services. You can also call to request the prices.
Let the fleet manager know that you are shopping around and looking for the lowest price on whatever make and model you want. This will put a little extra pressure on him or her to provide you with the lowest price possible.
Make a list of these to present to other dealerships. You'll want to give each dealership the opportunity to beat the lowest bid.
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4
Prearrange your finances. Most people cannot afford to pay cash for new cars, and oftentimes, financing at the dealership is exorbitant. Take the prices you've had quoted to your bank or lending company. Have your loan in place and finances in order before making your final selection.
This will also give you a firm foundation on which to negotiate, as you will not exceed the pre-approved amount.
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Make a list of the features you want and the extras that you don't want. Don't pay for a sunroof and climate-controlled seats if you don't need or want them. Fees for unwanted extras can quickly increase the price of a vehicle.
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6
Get the invoice price -- what the dealership paid for the car -- and the true market value of the vehicle before going to the dealership. Edmunds has a TMV tool to help you decide what a fair market price is for the automobile you're purchasing.
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7
Firmly negotiate. Take all of your preparations to every dealership when making the final decision. Be confident and firm in your negotiations, and let the sales person know that you are not going to be forced into paying more than you can afford from the beginning.
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Tips & Warnings
If you aren't confident in your negotiating skills or you're a first-time car buyer, take a friend or family member with you to the dealership.
When requesting prices from multiple dealerships, be sure to take down the name of the fleet manager, or individual you speak to, the quoted price and all the pertinent dealership information.
One of the biggest problems people face when buying a new car is intimidation from sales-focused dealerships. Be prepared and have all your paperwork and plans with you when you arrive.
References
Resources
- Photo Credit keys to the new car image by Jake Hellbach from Fotolia.com
