Buying a new car, for some of us we get excited about the prospect of haggling with the car dealership to get the best price. For others, it just fills us with dread.
After the family home, the car is most likely going to be the largest purchase we ever make.
Whenever you walk into a car dealership, there is this nagging suspicion that you are going to be taken advantage of. This doesn’t have to be the case, especially in today’s market.
In preparation for your next ‘battle’ with the local Car Dealership, here are 7 helpful tips to give you an advantage.
1) Educate Yourself
To ensure that you are prepared to get the best deal possible from the dealer, you first need to know what a good deal looks like.
This means doing some research before you head out to look around the car yards. Work out what exactly are you looking for, list out what are must haves and what are nice to haves. No good getting a great looking car, if the baby seat doesn’t fit in.
Find out what incentives the car manufacturers are offering. Always good to have a check out R.A.C.Q’s or Red Book reviews. Check the local paper to see what the current advertised prices are.
2) Decide What Car You Really Want
Make sure you get the car you actually want, it’s easy to get tempted by a ‘great deal’ but it doesn’t matter how cheap the car is if it doesn’t meet your needs.
Can you see yourself driving it for the next 3 or 5 years. Does it take it in account your future plans, no good getting a car which only can fit two children in the back seat if you are planning on having a third. Will the boot be able to fit the pram plus the groceries?
This will help prevent you from making an impulse buy and a very expensive regret or mistake.
3) Buy at the Right Time
If you don’t need to replace your current car urgently, wait until the next year’s model have been announced. Typically, the new models come out around September, which means that from August to October is typically a good time to get a deal on this year’s model.
Sales staffs are also usually trying to hit a quota at the end of the month, so this is a good time to buy as well.
4) Remember RRP is just that – “Recommended”
Keep in mind there’s no such thing as a “fixed cost.” You can negotiate the price of everything from the car or delivery charges to the dealer add-ons.
Keep in mind the worse that can happen is the salesman says no.
5) Make Dealers Compete for Your Business
You know what car you want, and you have a good idea what a reasonable price. Now it is time to make the dealerships work for your business.
Always contact a handful of dealerships and ask each one for their best price. Lett them know you’re talking to other dealers, get them to start a bidding war against each other, which will drive the price of the car down.
Just make sure each car you’re looking at has the same features so they are comparable.
6) Have a budget
Always know exactly what you can afford before you go into the dealership. Have a budget and stick to it, that way it will be easier to say no and walk away from a dealer who is trying to pack unwanted extras onto the purchase.
If you have savings, it’s easy just work out how much you are willing to spend. If you must finance the car, talk to a professional before you go to the dealership. That way you know how much you can borrow and what it is going to cost you to repay the loan.
7) Get a least two quotes on Your Trade-In
A dealership may give you a great deal on a new car but offer you a low-ball price on the trade-in.
Before you buy, shop around and find out what the best price you can get for your trade-in.
If your finances will allow you to do it, instead of trading in your current car sell it privately. You will find that you will get a better price this way.
Now that you know how to save money on you next New Car Purchase, if you are interested in learning how to avoid four car financing rip-offs, six common car financing misconceptions, and 8 costly mistakes with car financing the get a copy of my Consumers Guide to Car Financing.
Links to R.A.C.Q’s website is https://www.racq.com.au/cars-and-driving/cars/car-… Or the link to Red Book is http://www.redbook.com.au