BUYING A NEW CAR::
The most important thing you should know when purchasing a brand New Car is the True Market Value. Walking in armed with this information will provide you with incredible negotiating power.
Beware of any sales person that starts out questioning what range you need your payments to fall in. If you base your negotiations on the cost of the monthly payment, you could end up with extended loan terms, higher interest rates, and no rebates or incentives.
The fact is that most sales people are trained to provide the customer with high numbers in the beginning of the negotiation process as a test. They call this the "first pencil." What this does, is provides opportunity for the sales person to come down on price and make a nice little profit while making themselves out as the "good guy."
True Market Value is the current price at which vehicles are being sold within the marketplace. This price has nothing to do with what the dealer paid for the vehicle but the price that you should pay.
You might be tempted to stop by a dealership on your way home to grab a few new car brochures to look at, but really think about this first. Once you walk into the door, sales people are trained on how to keep you there. Before you realize it, you have purchased a vehicle based on spontaneity rather than facts. Your best option is to be prepared before you shop for that new car!
Prepare a list ahead of time of the features you are most interested in. As the pressure of the sales pitch mounts, you will not be swayed into purchasing something not on your list.
Another thing you should already have in mind is the list of items that will help your vehicle retain resale value. Some examples of the features that would be of benefit are:
When you go into a dealership, you will see that all new vehicles have a window sticker outlining the price and features. This sticker is called the "MSRP" or the "Manufacturers Suggested Retail Price," meaning that this is the price the manufacturer of that vehicle recommends it be sold at. As you start your negotiations with the sales person, they will be gearing their sales pitch toward this MSRP, however, that is not the price you should pay. This is why it is so important to know the True Market Value so you can start the negotiating process to bring that price below the MSRP. The MSRP can actually be as high as 15% higher than the price paid by the dealer.
Some other tricks that might help get you a better deal are:
Once you reach the point of negotiation, the sales person will use a sheet of paper with four boxes on it. One box is for purchase price, one for trade-in, one for down payment, and one for monthly payment. Pay close attention when this begins. It is true that this helps the sales person keep track of the negotiations but it also allows them to work you without you even knowing it. For example, if you are not willing to put more money down, the sales person will quickly move his focus to the trade-in. If you do not budge there, he will move to the overall offer. Know what you are willing to do or not do and stick with it.
The most important thing you should do when considering the purchase of a new car is to research, research, and research! Whatever you do, do not rush out to buy an new car without first checking the consumers reports for the type of vehicle you are interested in, as well as the reputation of the dealership you want to work with. To protect yourself from being ripped off by additional charges, here some basic steps you can follow:
When you request a price quote for a new car from autofinder.com, you are contacted via email by up to 3 dealers who have a person dedicated to internet leads.These people know that the most important thing to getting your business is by offering you the best price on the new car you are looking for.
They also know that you are more prepared and educated about your new car purchase than most people just walking in the door.
Always keep in mind that you are the customer. If a sales person you are dealing with makes you feel uncomfortable, you can politely state that you are "just looking" and then find another dealer that you feel you can work with better.
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