The main thing a buyer has to remember when buying a car in 2014 is that the dealer definitely has the advantage. In the automobile market, the seller has the upper hand. That is why the potential buyer needs to come to the dealership prepared with as much information as possible. In this case, knowledge is power.
Naturally, the first step is establishing a fair and accurate price for the car you want to buy. For used cars, the search begins by consulting a Kelly Blue Book or N.A.D.A., both well-trusted references. The prices listed on these sites may not be the price that will be offered on a lot. Seasons of the year can effect pricing (convertibles, for example sell better in the summer), or scheduled part replacement, or lack thereof, can make a difference in what is offered. Also available online are special downloadable “Packages” for specific vehicle purchases that allege to make available all the information for pricing specific types and models of cars.
The next thing a smart car buyer will do is to get as many quotes as possible on the car in which he is interested. Once again, the more information received the better the chances of getting a majorly lower price. This can be done by visiting local car dealers’ lots, or by using the internet on sites such as edmunds.com and carsdirect.com. There are others sites as well, just search “get a free automobile price quote”. There is no need to inform on the questionnaire whether you are trading in a car, or what type of financing you will be using. You will need to give your correct contact information, however, or you will not get an answer from the site. In specific cases it also makes sense to contact auto brokers, who specialize in negotiating fair deals on cars one such company is Interstate Auto Buyers, but searching online will reveal several similar companies.
Learning the art of negotiating is fundamental to getting the best price on your vehicle. Simple as it may be, the experts say that the one most important factor in dealing with car salesmen is to be confident. If the buyer cannot be confident, he needs to take someone who can. Another tip is to only raise the bid $100 at a time. Also, use the invoice price as your starting point, not the sticker price. Don’t fall into the trap of negotiating on the monthly payment. The salesperson can configure the loan for low monthly payments, but ratchet up the price of the car by extending the length of the loan. When you negotiate your trade-in price, if you are trading in, make sure it is close to the Blue Book price. If not, negotiations should be over.
An outstanding negotiating factor is buying a car for cash. When that is done, there is plenty of wiggle room for the buyer. If there are rebates available on the car, the buyer can then tell the seller that he will take the car seller’s loan, receive the rebate, then pay the loan off with the cash he had for the purchase in a few days. As long as there are no early pay-off penalties, the purchaser wins all the way.
Listen to a word from the wise. Folks who have been taken advantage of in the car buying process want potential buyers to read and do the math on all the final paperwork. It is up to the buyer to make sure that there are no add-ins (i.e., rustproofing), and verify the payment price and the trade-in value you were quoted. All of these safety procedures will be worth the time and effort.
Most of all, be willing to leave the dealership without a car. If you are married to having one certain car, and you want it that very day, stop. There is an art to buying a car, and most dealerships and salesmen are very good artists. The human emotion element can be the downfall of any potential buyer. Leave, take a breath, get calm, and start another day. Caveat Emptor (Let the buyer beware.) is never more applicable than when purchasing a new automobile.
About the author:
John has been involved with the automotive industry for over a decade, if you're interested in learning more about him visit his webpage.
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