The Best Car Buying Tips
Car Buying Is Easy If You Have The Right Resources
With car sales expected to be down this year, many dealerships will be desperate for any sale they can get, says Danny Chan, CEO of AutoBrag.com, a car-shopping comparison Web site that compiles price data from no-haggle dealerships. The slow conditions could prompt many of them to accept better deals as they struggle to keep their doors open, he added. But even though dealers might be hungry to make a deal, don’t expect that they’ll give in to your offers without a fight.
If you’re considering the purchase of a new car, you’ll need to prepare before browsing the show floor. Here are five tips on how to get a good deal on your new set of wheels:
1. Hit The Internet
The Web has a wealth of automobile information that can help consumers know how much they should be paying for a car and what deals they can get. AutoBrag.com tells consumers how much cars are selling for at actual no-haggle dealerships, and shoppers can use those quotes during their negotiation. Deals can also be found by expanding your online search to dealers beyond your immediate area. Even if the best deal is states away and the automobile needs to be transported to you, it may be worth the hassle.
2. Know What You Can Afford and Your Loan Options
Before negotiating, it’s also important to know exactly how much you can afford. But don’t max out your budget. Experts also advise not extending the term beyond the standard five years to bring monthly payments down. More manufacturers and dealers are now offering 7-year car loans; for a $20,000 car, the loan would rack up an additional $5,335 in interest.
And investigate loan options before hitting the showroom. Often, credit unions offer favorable automobile financing, Chan said. If opting for dealer financing, make sure you know what interest rate you should be paying before signing, he said.
3. Consider Older Model Years
When the 2009 models come out and 2008 cars are still on the lot, the older new cars can be bought at a decent discount for good reason — their age will cause them to depreciate faster. Two months before the release of the 2009 Toyota Camry, the 2008 model was being sold to consumers for an average of 5.32% below the manufacturer’s suggested retail price, Chan said. But during February 2008, when the new model was released, the 2008 model was being sold for an average 10.39% below MSRP.
4. Negotiate Before Incentives
Get down to a good price before adding an incentive, even if adding a manufacturer’s rebate pushes the price below invoice. In fact, keep all the transactions separate — negotiating the price before the financing and the trade-in value. You’ll often get the most for your vehicle if you sell it yourself. But if you decide to trade in your old vehicle, use the Internet to learn what it’s worth. You can simply ask AutoBragBlog.com for your used car value.
5. Don’t Cave To Pressure
It’s a buyer’s market, so don’t be intimidated and be aggressive in your negotiating. If the salesmen won’t budge and you can’t get the price you want, be prepared to walk away and try another dealership, Chan said. He also recommends not paying for extras such as paint protection; dealers often put a huge mark-up on this extra, and you may be better off having it done somewhere else.
