Everyone is at a disadvantage when going to a dealership and negotiating for a car. There are several websites today that are out there to help you through that process. The key with any negotiations is to stay in control of the process. Remember that you are the one making the purchase, the dealership is there to serve you – it should never be the other way around.
Online lending has become very popular with consumers because they can apply for a car loan before ever stepping foot in the dealership. This helps put them in control of not only the car buying process but over the financing portion of the sale as well which historically has been the largest profit piece of the car sale for the dealer. With your financing already taken care of, you have accomplished half of the negotiation battle already. Here are a few simple things to remember:
1. Research: Do your research before you shop. Look at your trade-in’s value and how the model you want is priced before you get to a dealership. Many sites exist to get this information but one of the best non-biased sources is Consumer Reports.
2. Make an Appointment: Make an appointment with an Internet sales person before going to a dealership. You will typically get a better price and less sales pressure. The internet sales person is more like a fleet person and is used to dealing with a savvier buyer.
3. Hold Your Personal Information: If you have gone online and taken care of your financing before going to the dealership, do not give the dealer your approval amount, desired payment, interest rate and most importantly, your social security number. If you already have financing lined up, a dealer does not need this for any reason.
4. Trade-Ins: If you have a Trade-in, do not disclose this information until after you have negotiated the price of the vehicle you are buying. Get the new car price in writing and then negotiate on the trade. These are two separate transactions that happen to be on one piece of paper.
5. Test Drives: Test-drive multiple vehicles at multiple dealers and make them compete for your business. Do not talk about price until after you test-drive the vehicle. You will not know if you like it until you take a test drive. Let the dealer know you are still shopping around.
6. Financing: Do not tell the dealer about your pre-arranged financing; you want the dealer to think you are paying cash. If you have gone online and applied for a car loan, you are a cash buyer in their mind. This will get you a better price and not allow the dealer to manipulate you into thinking you are getting a good deal.
7. Setting the Price: Give the dealer a set price you are willing to pay with everything included (taxes, fees, registration etc.) For instance, if you are interested in a Ford Explorer for $15,000.00 you should say “I will write you a check right now for $14,500.00 but that includes everything. Do we have a deal?” Do not give them an option. Always be willing to walk away!
8. Do Not Wait Around: Do not stay in any dealership more than 30 minutes waiting for a price. A test drive should take 10 minutes. Give them a price after your test drive and let them know they have 15 minutes to give you an answer. If you do not get an answer, leave and tell them they can call you if they want to sell you a vehicle today.
9. Read Before You Sign: ALWAYS read your purchase order. Make sure you understand everything you are committing to and what your responsibilities are in this transaction. There are many “tricks of the trade” dealers will try and use so be aware.
While there are many more ways to save on your next car purchase, these tips along with getting your car loan online will be sure to help. You can find out more important tips and apply for a car loan online at OpenRoad Lending. There you will find other useful information about your credit and the importance of maintaining a good credit history. Happy Negotiating!