While the prospect of buying a new car can certainly be exciting, trying to negotiate the best price can also be daunting. Using a few smart tips and techniques can help you to negotiate the best price on your next new car.
The most important step you can take to help you obtain the lowest price on the purchase of a new vehicle is to do your homework first. Research is absolutely essential to getting the best price on a new car. Taking the time to do research ahead of time will allow you to make price comparisons and also to locate dealerships offering incentives such as rebates and dealer cash.
When reviewing prices, it is imperative to make sure you know the difference between the sticker price and market value. The sticker price refers to the amount that the dealership would ideally like to obtain for the vehicle. Keep in mind that this is not necessarily the amount they must obtain or that you should pay for that vehicle. The sticker price is really just the beginning point for negotiating the final sales price. Market value refers to the average price that other consumers have paid for that same model in your local area. You should always remember that market value can depend on factors such as the geographic region in addition to the color of the vehicle and options.
When it comes to obtaining the best price on your new vehicle, you also need to be certain you take full advantage of rebates and incentives. Almost all car manufacturers offer some type of rebate or incentive as a method of attracting buyers. Before you actually purchase a vehicle, make sure you have researched all available discounts. It should be remembered; however, that some incentives such as zero percent interest and no money down are often only available to consumers with excellent credit.
Confidence is also important when negotiating prices on new vehicles. Now is not the time to shy away from stating what you need. Consumers who are fairly aggressive often tend to get the best prices. When it comes to negotiating remember that dealers do not make the majority of their money on the sales of new cars. There is only a small profit margin on new car sales. Most profits for dealerships stem from parts and service. Their goal is to sell you a new vehicle in the hopes that you will be a return customer paying for parts and service. Therefore, you should never shy away from asking for a lower price, even if it is below the invoice price.
At the same time, you need to make sure that you remain flexible regarding certain specifics such as additional options and the color of the vehicle. You will often be able to get a much better deal if you remain flexible.
You also need to take care to fully review all paperwork related to your vehicle purchase. Even if you have already agreed to a good price with the salesperson, be sure to get that deal in writing and carefully scrutinize it before signing.
Finally, if you find that you are having difficulty in securing the price you need on a new car; do not be hesitant about walking away. You may very well be able to negotiate the price you need on a new vehicle at a different dealership.
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written by:
Nicole Rodgers
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Image courtesy of: Andy Newson / FreeDigitalPhotos.net
