Things to Watch Out for When Negotiating for a New Car
A couple of easy-to-avoid situations that cost people thousands...
A lot of people ask how to negotiate when buying a new car. This process has a couple of situations that usually trip people up. Using a site like howtobuyanewcar.com can help you avoid these pitfalls.
Dealer Scams To Avoid
Save yourself 1000s before walking into a dealership lot with these steps:
1. Important: Know what the dealer paid for the car - You can use sites like autoquotesnow.com, where you can find the real discounted price on new cars.
2. Auto financing game - watch out!
Get a free quote online firs,t so you have a basis to negotiate to what the dealer offers you for a car loan. Never listen to the dealer. Do your homework first. Go to mycredittree.com and get a free quote.
3. How much can you afford?
Never ever tell the dealer how much you can afford a month. Always ask for the full price on the car.
4. Be cold - Tell the dealer this is what you can afford for the car or you will shop else where. You can always negotiate few 100 bucks or even 1000s like this.
Above all, remember to get the real price of the car before going to the dealership. Use howtobuyanewcar.com.The first situation that people run into is the dealer trying to sell everything BUT the car they're interested in. Before you can negotiate a car price, you must know what car you want. Knowing the options, color, and trim package you are interested in gives you the advantage because it narrows your focus and prevents you from allowing the salesperson to lead you all over the lot trying to convince you that you want something you really don't. The very best way to avoid this situation is by knowing ahead-of-time that this particular dealership has the exact vehicle you're looking for. Stick to your guns and insist on looking at only what you're interested in. It's a common trick to try to make a prospective customer lose focus by showing him or her as many different options and vehicles as possible.
The second major issue people encounter when negotiating the best car price with a dealer is, simply put, price gouging. Regardless of what price the dealer usually accepts for a given car, he'll more than happy to take more from an uneducated car shopper. This is the reason the MSRP on everything is so much higher than anyone really pays. The MSRP is just there so the salesperson can point to it and say, "Look what a great deal we're offering you."
Avoiding falling for this trap is a simple matter of doing your homework. Knowing before you ever step onto a car lot exactly how much a certain vehicle should cost puts you ahead of the game and protects you from price gouging. Car dealers count on people not doing the homework to maximize their profits. The thought is, "This is what we'll take for the car, anything more than that is gravy...".
Even people who don't have extensive experience negotiating understand the general concept: He starts high, you start low, and you meet somewhere around a fair price.
The trick in this situation is knowing beforehand what that fair price should be. This is your target price. If the dealer starts $2000 above what you know to be a fair price, you start $2000 below. You always keep your target price firmly in mind. Doing this allows you to ignore any distractions, allowing you to avoid being side-tracked into discussions of things that have no bearing on your goal.
Shopping for a new car can be a confusing, frustrating process. It can also be a very straight-forward business transaction. The key to eliminating the confusion and frustration is doing your homework. That's why it's absolutely essential that you take advantage of a site like howtobuyanewcar.com to ensure that you know the price you intend to pay, the precise car model you want, and that the dealer actually has that vehicle in stock.