When you want to buy a new car, you want to be sure you get the best price. But forget about spending hours negotiating with salespeople; if you use these tips, you can get the best price before you even enter the showroom. (If you want to find out whether a new car is for you, see Car Shopping: New or Used?)
The Best Way to Get a Deal On a New Car
If you walk into a dealership and ask for the best price, you won’t get it. Salespeople will sit you in an office and negotiate with you for an hour before giving you something resembling a real price. Even if you believe you’ve been successful in reaching a fair price using this approach, you’ll never know for sure without comparison shopping. Going through this negotiation process with several dealers would take hours.
What many buyers don’t realize is that every car dealership has a back door that nearly always gives you the no-nonsense price of a car instantly. This back door is the internet sales department or fleet sales department. You can contact an internet salesperson for each dealership by using the phone numbers, email addresses or contact forms found on every dealer’s website. If you want to get quotes from more than one dealer, go to the manufacturer’s website and “build” the vehicle you want (choosing the specs, color and so on), and then request quotes from all the dealers in your area.
The internet approach is almost always cheaper and easier than shopping in person. Every dealership is actually in direct competition with many other dealerships in the area. When using the internet to obtain price quotes, you’re telling the dealership that you’re comparison shopping and that the regular pricing games won’t work on you. For this reason, an internet salesperson will often give up the best price with no negotiation at all.
When talking on the phone with salespeople, many of them will ask you to come to the dealership, because this gives them more leverage in convincing you to buy. At this stage, don’t agree to go to any dealership and just continue collecting quotes. As you compile your dealer responses, you’ll notice that quotes can fluctuate by more than a thousand dollars. Be sure to tell higher-quoting dealerships that you know of a better deal. They might not lower the price, when you want to buy a new car but it’s always worth a shot. Using this technique, you can get multiple quotes easily and find the true price of your target car within an hour.
How Can You Negotiate on a New Car?
New vehicles can often be cheaper to finance than used, and you can use negotiating strategies to get the most bang for your buck when you’re ready to buy. Some negotiating tips to keep in mind to get the best deal on a new car include:
When you want to buy a new car in a lowest price, is about Knowing the numbers – Just how much does the vehicle you want typically sell for? Check valuation sites such as Kelley Blue Book and NADAguides to see the average transaction price range. This way, you have a good idea of whether or not the deal you’re being offered is truly good.
Using your words wisely: Be forward and confident, yet don’t push it. Let the dealer know you’re willing to purchase a car if you can come to an agreement.
Starting low: Using the numbers from your research, you can start negotiating at the lowest price (this is usually the invoice price for new vehicles).
Keeping to your word: If you know what you want and don’t want, keep to your word and don’t feel obligated to accept additional options you don’t need .this can help save you hundreds or even thousands on a new car purchase.
Besides the vehicle’s purchase price, you can also negotiate your interest rate, trade-in amount, and documentation fees. Unfortunately, you can’t negotiate taxes or title, registration, and destination fees, so these are things you need to have in mind when you want to buy a new car in a low price.
Most customers don’t realize that financing is a profit center for car dealerships. A finance manager is often a commissioned salesperson. Financing a new car purchase through a dealership often involves large initial “financing charges,” which are pure dealership profit. A finance manager can also manipulate interest rates and other loan terms to squeeze additional profit out of a deal.
With so many complex terms, it can be very difficult to ensure you’re getting a good deal on financing. If you’re a monthly payment buyer, dealers can play costly games with you, but if you’re a cash buyer, you can set an exact price on a car. If you can’t pay cash, finance your loan outside of the dealership, where you can shop for the best rates and terms in a competitive market.
Cheapest Cars to Buy New
Did you know that it makes more sense to buy a new model over a lightly used model in some cases? iSeeCars.com analyzed the best cars to buy new over used, and focused on sales from August 2018 to January 2019 comparing new 2019 models to their used 2018 model counterparts. The top five include:
- 2019 model MSRP: $20,520
- Used 2018 model average price: $18,260
- Difference: $2,260 (12.38 percent increase)
- 2019 model MSRP: $19,450
- Used 2018 model average price: $16,945
- Difference: $2,505 (14.78 percent increase)
- 2019 model MSRP: $21,895
- Used 2018 model average price: $18,917
- Difference: $2,978 (15.74 percent increase)
- 2019 model MSRP: $24,350
- Used 2018 model average price: $21,120
- Difference: $3,230 (15.29 percent increase)
- 2019 model MSRP: $25,700
- Used 2018 model average price: $21,659
- Difference: $4,041 (18.66 percent increase)
Getting the best price when you want to buy a new car doesn’t have to mean hours of stressful negotiating. When you use the internet to compare prices, pay cash for your car and don’t fall for the extras the dealership offers, you can shop like a pro and save thousands.