If you are in the market for a new hatchback right now, then January might just be the month to get one.
As we have mentioned countless times, winter is a slow season for the industry, which means that manufacturers and dealers are willing to lower the price as much as necessary to make a sale.
For instance, Mitsubishi and Hyundai are both offering incentives of $1,000 or higher, while dealers are willing to subtract more than $400 from the selling price. Combine both, and you can get a discount as high as $1,400. And if the car you are buying already costs less than $14,000, then you are shaving off a very decent amount.
All you really need is our dealer cost report and a few negotiation tips…
How to Negotiate
Before even walking into a dealership, the first thing you want to do is pick your car. That way, you can instantly point out the cars you like and then test them – instead of just trying out everything they have.
Once you pick a few vehicles and look up the dealer cost on each one of them, head over to your local dealership and start negotiating.
Start by assessing how much the salesperson you’re dealing with is willing to sell the car for. Obviously, you want to see something lower than the selling price. However, you should also keep in mind that the dealer will never sell you a car for the dealer cost (much less below that), because doing so would cut into their profit. As such, the ideal price for both parties is roughly three per cent above the dealer cost.
The best way to approach this is by naming your price and working up from there. Remember that a good salesperson will always try to keep the price high, so they will likely reject your first offer with a counteroffer. If their counteroffer is the asking price, then you should just walk away. However, if it’s a number below that, then you can continue to negotiate.
Your next offer should be an amount slightly above the initial one. For instance, if the asking price is $18,500, but you offered $16,500, then your next suggested amount should be 17,000 or slightly below that. You need to work your way up, while the dealer would work their way down, until the two of you meet in the middle.
Wait until the price is settled before discussing your payment options, particularly if you’re planning to finance your vehicle. In fact, it’s always a good idea to obtain a loan from a financial institution first – even if you are planning to finance your car through a dealership.
When you get your price quote, make sure you understand what you are about to sign. Check if the additional fees make sense and that you’re paying the right amount. If everything adds up, then sign away!
Here are some deals you should definitely consider:
Total Savings: $1,311
Manufacturer Incentive: $500
Mitsubishi Loylaty Rebate: $500
Unhaggle Savings: $311
Mandatory Fees (Freight, air tax, etc.): $1,585
Total Price Before Tax: $13,972
Total Savings: $477
Manufacturer Incentive: $0
Unhaggle Savings: $447
Mandatory Fees (Freight, air tax, etc.): $1,630
Total Price Before Tax: $16,728
Total Savings: $1,325
Manufacturer Incentive: $750
Unhaggle Savings: $575
Mandatory Fees (Freight, air tax, etc.): $1,730
Total Price Before Tax: $19,254
The incentives above are for cash purchases only! For more information on financing and leasing incentives, consult the Unhaggle free dealer cost report.