If you are buying a used car, you should first read my June 4, 2012 posting, Used-Car Buying 101. The information here applies to buying either a new or used car—specifically the negotiation part--and has been said elsewhere.
First, do not allow a car salesman to begin the dialog by asking, "How much are you prepared to pay per month?" If you answer that, you will not get a good deal, and you very likely will end up paying more than the figure you named.
Second, have an idea of what your credit score is. Then go to a credit union and see what interest rate you'd be able to get from them. Go into the car dealer armed with that offer of a finance rate and see whether the dealer is able to beat it. He has his sources of financing, and a car buyer with an excellent credit score is in a good position to bargain for the finance rate.
But that is the last step. First you and the dealer (or salesman) must agree on the price. Remember that they do this all the time, and in fact for a living, and they have a bag of tricks up their sleeve. Be armed with figures for what you should be paying for the car, and be prepared to spend several hours with back-and-forth offers and counter-offers. The salesman will keep disappearing after you name a figure, telling you he has to get approval from his sales manager. This may be more tactic than fact. But stick to your guns as to what you think you should pay, and be prepared to walk out if they're not willing to bargain. Anyone who lives in an urban area with multiple dealers for that make can threaten to go elsewhere. Also—did you know you can even do some of your car shopping by phone? You can call around and ask for quotes—though some dealers will refuse to name any numbers over the phone.
You can also solicit price offers on a car via the Internet. I think the site in question is carbuyer.com.
Copyright © 2013 by Richard Stein
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Good advice, Richard.
ReplyDeleteOne mistake I've made in the past is letting the dealer determine the value of my trade-in. Next time I'll check the websites. CarMax also advertises that they will give you a written offer on your car, which may be useful ammunition when negotiating with a dealer.
My best deal on a car was accidental. My wife was disabled and unsteady on her feet, so she became proficient at falling down without injury. We were shopping for a used car when she tripped and took a spectacular pratfall. The dealer offered us a really good price on the car. I do not recommend this as a negotiating tactic, however.