For many people, buying a new car is a stressful experience, and consumers are right to feel that way: The process is expressly designed by car dealers to separate you from as much of your money as possible. And if you don’t follow several basic rules, they’ll succeed in taking you to the cleaners.
True, there are exceptions to the rule — those rare dealerships that don’t pressure their customers or manipulate the car buying process to get the maximum possible profit from every sale. But you shouldn’t plan on being lucky. Instead, be prepared.
The car buying process is one of the most hardball consumer experiences, hence the sooner you recognize it, the more likely you’ll buy a new car for a reasonable price — not what the dealer wants you to pay. The keys to getting a fair price are patience, preparation and perseverance.
1. Be Patient.
If you are patient, you’re more likely to buy a car for a fair price. This is the most important rule of new car buying, but it’s amazing how many adults fail to obey this golden rule. Conversely, if you are not patient, the dealer will win.
If you are patient, you’re more likely to buy a car for a fair price. This is the most important rule of new car buying, but it’s amazing how many adults fail to obey this golden rule. Conversely, if you are not patient, the dealer will win.
Being patient, though, doesn’t mean waiting to buy a new car until your used car no longer functions and you desperately need transportation. Better to buy a new car when you don’t need one immediately, so you have the freedom to walk away from the dealer’s first, second, and even third offers. Negotiate from strength.
2. Pay Cash.
Obviously, this isn’t possible for all prospective car buyers: Financing for 48 months or 60 months often is a necessity. But cash rules. If you can skip the loan, your negotiating power increases substantially.
Obviously, this isn’t possible for all prospective car buyers: Financing for 48 months or 60 months often is a necessity. But cash rules. If you can skip the loan, your negotiating power increases substantially.
3. Be Prepared to Walk Away at Least Twice.
Here again, you have to exercise your “no” muscle. The salesperson will tell you: “This is our final offer, our best offer,” or “It’s as low as we can go, we’re losing money on the deal.” But know that when they says this, there are one or two lower offers below it. Never accept a salesperson’s first or second offer. After you reject the first, the dealership invariably will call you back. If it doesn’t, as noted before, move on to the next one. If you don’t haggle and negotiate, you’re playing in to the dealer’s hand.
Here again, you have to exercise your “no” muscle. The salesperson will tell you: “This is our final offer, our best offer,” or “It’s as low as we can go, we’re losing money on the deal.” But know that when they says this, there are one or two lower offers below it. Never accept a salesperson’s first or second offer. After you reject the first, the dealership invariably will call you back. If it doesn’t, as noted before, move on to the next one. If you don’t haggle and negotiate, you’re playing in to the dealer’s hand.
Remember, you’re in the Driver’s Seat
There are exceptions to the above rules. The new car buying proces
s is harsh, and a stamina test. It’s designed to wear you down, get you to panic, and give in to the dealer on price. But for the most part, if you shop with patience, preparation, and perseverance, you can beat the dealership at its own game.
There are exceptions to the above rules. The new car buying proces
s is harsh, and a stamina test. It’s designed to wear you down, get you to panic, and give in to the dealer on price. But for the most part, if you shop with patience, preparation, and perseverance, you can beat the dealership at its own game.