A car will typically be the second most expensive purchase you'll ever make. Going to a car dealership and negotiating the price of your dream car can be a daunting experience, but it doesn’t have to be.
We've put together 5 tips on how you can negotiate the best price for your next car at a dealer.
Leverage EOFY sales
End of financial year (EOFY) can be a great time to grab a bargain on a new car, as manufacturers and dealers drop prices in order to offload stock quickly and reach their sales targets before the financial year ends. Although dealers have already dropped their prices, you’re in a great position to negotiate and reduce your price even further.
EOFY sales will differ from dealer to dealer in terms of how low they are willing to go, but shopping in the last two weeks of June can afford you a great deal on a new model.
Don’t get your finance at the dealer
Dealers often spruik low-interest rates which seem attractive at the time, given you can sort the finance immediately and it seems you have a great deal with low repayments. However, these loans often come attached with exorbitant upfront and ongoing fees, blowing out the cost of your loans and costing far more than going through a traditional lender. For an alternative to dealer finance, check out some of our market-leading car loan rates.
Like any purchase, buying the first car you see at the first dealership can be an expensive mistake. It’s important to visit a few dealers to gain a good understanding of what deals are on offer and who is willing to negotiate.
Many dealers will have offers like “we’ll beat any price” which you can use as leverage between dealers to bring the price of your desired car down. You can also shop around to see what extras dealers may throw in to sweeten the deal.
Don’t be afraid to walk
One of the greatest negotiating tactics you can use is to speak with your feet. Car dealers hate people walking out the door as it heightens the chance they’ll go elsewhere and find a better deal, or simply not return.
Body language plays a big part in negotiating, so don’t be afraid to leave. Even if you don’t find a better deal, you can still return to that dealer as it’s unlikely that offer will be off the table.
Double-check the extras
Dealers often advertise fancy extras as a way of hiking the price of a car. Just because you’ve leveraged the dealer to bring down the price of your car, doesn’t mean you should then have to go without these extras.
Furthermore, have a good idea of the base model of the car you want and decide if you really need any of the extras they’re offering. Going without leather seats for example can bring down the price of your vehicle even more.
It’s also important to review the warranty. If you’re getting finance for five years but only have a warranty for three years, try negotiating to extend that warranty so you’re covered for the length of your loan.
If you’re ready to get pre-approval for a car loan, chat with one of our friendly car lending specialists today.
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