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6 Tips for Finding the Best Deal on a New Car

It may appear like dealership salesman care about a buyer’s best interest, but their priority is to profit. They convince buyers to pay more money in several sneaky ways. Don’t give in. Aim to keep as much money as possible with these tips.

Have Financing Beforehand 
The best way to save money is to have cash on hand or a pre-approved car loan. It forces buyers to find a car within the price allotted. A pre-approved loan is a great interest rate comparison against other auto loans. Ensure the pre-approved or approved loan doesn’t last longer than 48 months.

Keep the paying method a secret until the contract is final. Failure to do so equals dealerships increasing the car’s value, pressuring to include add-on features, penny-pinching fees, and manipulating interest rate.

Research Heavily 
Go to dealership and general car websites for answers. Dealers will pounce heavily on buyers who desire only one make and model, so compare prices on several makes and models. Find dealership and manufacturer sales and discounts through ads, in-store coupons, membership cards, and military/student rebates. Secure a loyalty or conquest discount. Learn more about rebates vs. loan rate. Take all information to the dealership for further comparison.

Buy Slow-to-Sell Cars 
Dealerships want to sell cars quickly to remain in business and to make room for upcoming inventory. Cars that sit on the lot over six months are a buyer’s advantage to negotiate for a lower price. Signs of slow-to-sell cars are odd paint colors or dust/dirt. Don’t expect several color choices or special features for older cars as options are limited.

Don’t Include Add-on Features 
Avoid the temptation to add features and subscriptions you’ll believe are beneficial, including warranties and sealant. Dealers encourage add-on features to buyers so the car’s value and their profits increase. One add-on feature is in the hundreds, so adding five increases the price immensely. The desired features are inexpensive elsewhere.

Remove Unnecessary Fees 
The contract contains several hidden fees unbeknownst to the average consumer. Examples of penny-pinching fees are preparation fees, administrative fees, floor plan fees, advertising fees, and fees making little sense. The factory invoice sheet informs dealerships the mandatory fees, and the dealership adds several more fees for personal gain. Pay only the factory invoice fees and nothing more.

Negotiate 
Ignore the price, put on a poker face, and negotiate using the previous advice as guidance. A strategy dealerships use is including several people in the one-on-one conversation to tip the deal in their favor. Bring a friend or family member with to counter it. If all else fails, walk away. Find another dealership carrying the car of interest who will listen.

Dealership salesman love to be in the driver’s seat. Be proactive and prepared to keep more money in the bank. Buyers using these tips will be the ones driving the conversation.

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