Auto repairs can be a costly expense that can unexpectedly affect any individual. Auto service plans will help you avoid and prepare for these unexpected expenses by covering a variety of your vehicle's components.
Negotiating can be quite tricky especially when you are enthusiastic and excited about buying a vehicle. Before going to a car dealership, you need to prepare yourself with as much information as possible- your goal is not only to buy a vehicle, but to get the most value for your money. Car dealerships have sales people who are trained in handling all types of customers in order to close a sale. This puts you at a disadvantage because you will not have as much experience handling negotiations, but your leverage is being armed with as much information as you can find for the vehicle in which you are negotiating.
Ultimately, to get the best deal on any used or new car you need to prepare yourself thoroughly for negotiation. Here are some valuable insights that can help you handle negotiating with car dealerships:
First, make a list of cars that you want to purchase. After creating a shopping list, you can visit the internet to find pricing, reviews, car history reports, and much more useful information. Your first thought may be to focus on car dealerships within your area, but you should also get information about the same make and model of cars outside of your locality. This will give you a general idea of how much the car is selling for in other areas.
Next, check buying references and buying guides as well as the Kelly Blue Book guide and The Used Car Guide produced by the National Automobile Dealers. If possible, get a printed version of these references and do not just depend on the online version. When looking at these resources, it is important to take note of two prices: the wholesale price and the retail price. The wholesale price is the price paid by the car dealers to purchase the vehicle; the retail price is how much they are selling the car for. Your goal is to negotiate a fair price that is somewhere between the listed wholesale and retail numbers.
Contact as many car dealerships as you can and ask if they have the car of your choice available. Many online sites have vehicle inventory of all makes and models from many dealerships and in turn, will save you a lot of time going from site to site. Remember that you are not yet in the negotiation phase here. All you want to know is the availability of the car and to confirm the asking price. Once you get the confirmation, drop by the car dealerships to see the car and get the car's Vehicle Identification Number. Car dealers might talk you into buying the car right then and there, so avoid the temptation of providing your buying information. Make it clear that you are not ready to make a purchase yet.
Car dealerships typically offer financing plans to customers who are not able to pay the selling price in full. Car dealers typically do not finance their loans directly, but work with partner banks. These partner banks in turn usually allow for slightly better terms than if you went alone.
Also, you may also want to look for your own financing options rather than simply relying on the car dealership. In some cases, you may be able to secure a better deal through a bank or credit union with which you already do business.
When buying new cars this step may not be as important, but for used vehicles it is crucial to ensure that you make the best choice.
In order to evaluate each vehicle, you should first obtain a vehicle history report such as CarFax. This will allow you to discover the history of the car including ownership, accidents, and other information that can help you in narrowing down your choices and bargaining for a better deal.
Next, go back to the car dealerships and visually inspect the car of your choice. If possible, bring a certified mechanic with you. This may result in an added expense, but it is better to have someone knowledgeable looking for defects and possible repair requirements than being sorry later on. Do not be afraid to walk away from car dealerships that refuse to allow your mechanic to inspect the vehicle.
Once you are satisfied with the vehicle(s), ask the auto dealer for the best price that they can provide. Do not give away your advantage by saying something like “I'm looking for a car in the price range of X amount.” Let the dealer lay down his card. Car dealers may offer amounts less than their selling price, but if you know the wholesale price or value of the car you still have room to slash the price even more. Car dealerships want to move their inventory as fast as possible, and this is something that can work in your favor.
Stick with your own “walk-away” price. You and the car dealer may go back and forth about the selling price, but set a limit to what you believe is the reasonable price. If the car dealer will not meet you at your walk-away price, then simply thank the dealer and tell him that you will just look for other options. However, before you leave, give the salesperson your contact information and tell them to call you if he/she has a better offer.
Even if the dealer meets your buying price, do not make a full commitment just yet. Tell the dealer you will make your final decision in a couple days. In the meantime, visit other car dealerships to find out if you can get a similar or better deal. Letting the dealer know that you are exploring other options can help in urging him to come up with a better price than you asked for. Car dealers will sometimes says things like someone else is interested in the car and is coming by to look at the vehicle . Just give him a smile and say that you want to keep your options open and you respect their decision to sell the car to others. However, if the vehicle at hand is what you have been looking for and is being offered at an acceptable price, do not hesitate to purchase at this time.
When you are ready to make a purchase, it is time to talk about financing. You can see what type of options a car dealer offers, but if it turns out that you can obtain better financing through an outside source, do not be afraid to tell the dealer this. If car dealerships insist on having the car loan financed through them, just look for other dealers that will work with you in your terms.
Car dealers rely on add-ons to increase profit margins. In addition to the profit from the selling price of their car, they may offer add-ons like extended warranties, detailing work, or general maintenance plans. Do not feel pressured into purchasing add-ons, but certainly evaluate each add-on closely to determine if one or more may or may not be beneficial to you in the future.
