Buying a new car can be overwhelming especially when you think about negotiating. However, to receive the best price when negotiating, it’s important to know a few tricks of the trade.
Know Your Goals
Knowing what you want out of a car is the first step to getting the best deal. Are you looking for something reliable? Is it going to get good gas mileage? What type of vehicle do you need to tow? Do you have kids? If so, how much space do they need? Knowing these answers will help you narrow down your options and make sure you’re not paying more than necessary.
Find Out How Much You Can Afford
The second thing you should know is how much money you have available to spend. There are plenty of ways to find out how much money you can afford without getting buried under debt. One strategy is to track your spending over time, then add up how much you spent each month. Then, look at how much you got paid and subtract that from the amount you spent. That number is how much you were able to save.
Understand the Market
Most people assume that all cars are the same price. However, this isn’t true. The market is constantly changing and prices fluctuate based on things like the economy, fuel costs, demand, supply, location, and maintenance history. To get the best deal, you’ll need to understand the market and what’s happening around you. If you see one dealer offering a lower price than another, go talk to them. And if you don’t think you can afford it, ask yourself why. Don’t feel bad about saying no; dealerships lose sales when buyers say they cannot buy a product.
Ask About Other Options
You may be surprised to learn that buying a car doesn’t necessarily mean you have to commit to using it for years to come. There are many cars on the road today that are less expensive than newer models. Older vehicles also tend to hold their value longer than newer ones, making it easier to sell them later.
Check for Warranties
Even if you choose not to purchase a warranty, knowing what is covered and what isn’t is important. The cost of repairs varies widely between different makes and models of vehicles. A basic oil change is $20-$40 while replacing the engine could run anywhere from $1000 to $2000 depending on what you need. The difference in coverage can often mean the difference between being stuck with a high repair bill or having some cash left over at the end of the year.
Once you’ve narrowed down your search and figured out just how much you can afford, make a list of potential vendors and shop for them. Many dealerships offer financing, which means you don’t have to pay cash right away. But before you sign any papers, ask yourself why you’re shopping for a new car. Figure out what kind of car you need now and compare the features of each option. Also, consider whether you’d rather spend a little extra money now or save a lot more later.
Make Sure You Have All the Details Down
Before signing anything, take a minute to review all the details of the contract. Does it cover everything you wanted? Did you read the fine print? Any hidden fees? Once you’ve reviewed the contract carefully, ask questions if you still aren’t completely satisfied. If a dealership refuses to answer questions, walk away. Remember, you have rights