Arrange For Financing In Advance
Decide what kind of financing you need before
you negotiate: bank, credit union or dealership
financing.
Then, compare interest rates. Sometimes,
dealership financing may offer you the lowest
rate to encourage you to buy, but it may be
coupled with a higher-than-necessary purchase
price for the vehicle. If you are preapproved
for a loan elsewhere, you can keep financing out
of the negotiation.
| Negotiating Tips |
| Prepare Yourself For The Hard
Sell |
- Most sales representatives want to
begin negotiating as soon as a
test drive ends.
- Tell your representative that you are only interested
in the test drive and are still
considering your options.
|
| Do Your Homework |
- Know which vehicle you want; what you should
expect to pay for the
vehicle; what other
dealerships are charging for
the same vehicle; and other
pricing details.
|
| Evaluate Rebates |
- Discuss rebates with a dealership only
after you have negotiated
the lowest possible price
without a rebate.
- You can learn about rebates
from television, radio and
print ads, as well as from
vehicle manufacturers' Web
sites. Rebates change
often and may be available
for a limited period of
time.
- Rebates may be deducted from the price before
the sale or it may be paid
to you in cash after the
sale. If you take the cash
option instead of the rebate
option, remember that you
will be financing a
larger amount, you will be
paying more interest and
your payments will
increase.
- Manufacturers may offer rebates and special
financing rates. Usually,
you cannot take advantage of
both offers. You can use an
online calculator to
determine which offer works
best for you.
|
| Time Your Buying Decision |
- When new models are released,
dealerships are eager to
sell other older models in
their inventories.
- You may be able to negotiate a better
price at the end of the
sales week — usually on
Saturday, after the 25th of
the month and the end of the
year.
|
| Manage Your Emotions |
- Negotiate when you have plenty of
time and are emotionally
prepared to walk away.
- Communicate your interest in
negotiating and your
willingness to leave without
buying if you are not
satisfied with the
deal.
|
| Negotiate Your Price |
- A vehicle's sticker price
includes a profit for the
dealership – as much as
10 percent. Begin
negotiating up from the
factory invoice price which
is found on Web sites and in
pricing guides.
- Many experts suggest that you offer 1 percent
to 2 percent over the
factory invoice price on
domestic vehicles and 4
percent to 6 percent on
foreign vehicles.
|
| Resist Buying Unneeded Items |
- Generally, you do not need
extras such as rust
proofing, fabric protection
and paint protectant. New
vehicle bodies are already
coated to protect against
rust.
- You can treat
your own upholstery and
apply paint protectant
yourself with off-the-shelf
products at a cost far below
the dealership's price. If
you see these items on
a bill of sale, mark through
them.
|
| Read All Paperwork Carefully |
- You will be
asked to sign a legally
binding sales contract.
Verify that the numbers on
these forms match the
agreement you have made with
the dealership. If you find
any discrepancies, refuse to
sign until the documents are
corrected.
- Ask questions if you do not
understand what you are
being asked to sign. Resist
pressure to rush through the
process.
|
| Inspect Your Vehicle |
- Your vehicle should be
detailed and filled with gas
as part of the conclusion of
your sale.
- Look for scratches, dents
and dings on the body.
Inspect the interior.
- If you find anything wrong,
document what needs to be
corrected in writing.
|
|
Buying Your First Vehicle
Auto Insurance
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