One of the golden rules in car sales is that dealers are a lot better at selling vehicles than you are at buying them.
That is why it is important to make sure you have done your homework and tipped the odds in your favour as much as possible before you head into the car yard.
Here are some handy tips to make sure that you get the best deal you possibly can when it comes to buying a new or a used car.
- Break down the deal into separate negotiations. Dealers sell cars every day and you only buy them every few years, so why take their word for it? Check loan rates with a lender before you go to a dealer so your dealer conversation will be only about the price of the car. Remember dealers that offer low-rate finance often will not discount the price of the car.
- Check the value of your car. There are great websites for finding out a used car’s value, so make sure you know what the trade-in value is of your old car, and what it sells for in a private sale. Even if you don’t want to sell your car privately it will give you insight into how much they are charging.
- Shop around, or get someone to. The best way to secure a great deal is by shopping around. Dealers don’t like it when you say that the competition has a better deal – that is because it is costing them money. Always focus on the drive-away price so you know what it takes to get on the road.
- Timing is everything. Some popular makes of cars will fly out the door regardless, but the one constant winning time for buyers is at the end of the calendar year when old stock is taking up room at the dealership. No dealer wants a 2013 car sitting around in 2014, and the more they have of those older brand new cars, the more inclined they will be to discount them for quick sale. Same goes for early in the new year.
- Do your sums. Unless you are spending a great deal of money on a car, most rebate offers or low finance rate offers are not worth it. Spend the time to drive the dealer down in price to see how much you can save first before you take a rebate or finance deal.