One of the main problems that people run into when buying a new car is that they don’t know how to haggle or negotiate for the best possible price. If you want to get a solid deal on a new (or even used car), then you need to make sure that you understand that you are actually the one with all of the power during these negotiations. Most car salesmen will do whatever they can to sell you a car while you are on the lot, which is why just a little bit of negotiation can go such a long way. Let’s take a look at some of the haggling rules that you should learn before you even think about purchasing your new car.
The First Rule of Negotiating for Your Car is Not to Negotiate
The main thing that you need to realize when haggling on the price of a new car with a car dealer is that you should have a certain price point that you want them to meet before you leave the car lot. By researching for prices on similar cars in the local area, you should be able to come up with a fair price that the car dealership will need to meet for you to drive off the lot in that car today.
Now a days there are plenty of sites that can help you learn about the price you should expect for your new car. The best benchmark would be to find out the invoice price for the car and expect to pay no more than 5% above that cost. Instead of trying to meet somewhere in the middle on a specific car, you should simply tell the salesman how much you are willing to pay for the vehicle. That’s it – no negotiating. If you believe it’s a fair price than hold to it.
Wait for the Last Day of the Month
Most car dealerships have certain quotes that they try to meet with specific types of vehicles on a monthly basis, so you could put yourself in an even better situation if you want for the final days of the month to roll around. Some car dealers will actually be desperate to get rid of certain vehicles at the end of the month, and they could even end up shaving a few hundred dollars off the price that you both agreed upon just a few weeks ago. Car salesmen usually like the idea of getting one last sale in before the end of the month, so you need to use that kind of knowledge to your advantage.
Keeping Going Back and Forth
If you have found a similar car at three different local car dealerships, then you are in a good position to get a great deal. You should basically view this kind of situation as a reverse auction where the three dealerships will continue to lower their price on a certain car until you finally find a winner. It is much easier to get a better than expected deal on a car when there are more than a few of that type of vehicle in your local area.
The best method of comparing prices between dealerships in this situation is to keep contacting each dealership for the best possible deal by letting them know you’re looking else where. The other dealerships will have no other choice but to try to beat your current best offer. There are even other online services that offer this kind of service without all the hours spent going back and forth.
Never Rush into a Rash Decision
One last thing that you need to remember when it comes to haggling for the best price on a car is that you don’t need to rush into any kind of quick decision. Take your time when purchasing a car because most car salesmen will try to rush you into a bad deal as soon as possible. Some people end up getting too excited when they step onto a car lot for the first time, and these are the kinds of people who end up overpaying for a car and regret how much they could have saved. If you are scared that you could make a bad decision on your first visit to a car dealership, then you may want to make a rule that you won’t buy anything during the first few visits.
If you have any helpful tips on buying a car for the first time, be sure to share them in the comments below:
