Whenever you are buying something, you want to walk away knowing you have bagged a good deal. This is no different from buying a new car. However, you can never be too sure if the price you negotiated for is fair enough or you are being conned. If you are equipped with knowledge of negotiating for a car, the process is quite simple. Here are tips to help you successfully negotiate for car prices.
1. Find the market value of your car
Before you even think of negotiating a car’s price, you need to do extensive research on the market rates. Finding out the price estimates of the car from different dealers and online automotive marketplaces give you an upper hand in the haggling process. Do a lot of footwork and a lot of reading to equip yourself with knowledge. You can also run the prices against the Cheki True Price Tool just to be sure.
2. Research on the best times to buy a car
The time you choose to buy a car is very important. Most dealerships have mid-year sales and clearance sales at the end of the year. It is wise to look out for these times if you want to get a good bargain. For instance, a 2017 car is likely to be cheaper in 2020 than it was in 2017 and it works just as a fine as a 2020 model.
3. Keep your emotions in check
Go into the car negotiation with an open mind. Do not be overly attached to a particular car. If you find that the car you can afford the car you want, pick a different model or walk away. Throwing a tantrum and insulting the sales representatives at a dealership won’t get you the car. It may, however, get you thrown out of the premises.
4. Negotiate each part of the transaction separately
When you have researched extensively, and you have all the price data for the car you want, negotiate for the price in parts. What this simply means is, negotiate for the trade-in value, financing and add on purchases separately. Doing this will reduce the overall cost of purchasing the car.
Most dealerships may insist on negotiating for the car as a whole package. For instance, if you are interested in asset financing and want to be paying your loan back monthly, the dealership may be willing to lower your monthly deposit. However, you will end up paying more money and for much longer.
5. Negotiate the drive away price
The “drive-away” or “out the door price” is the total amount of money you need to pay for a car before you can take it home. When you are negotiating for the price of a car, ask the dealers to calculate the full amount. This should include all the fees, sales tax, importation duty and any other costs you need to pay. In the event that the dealer gives you a different value at the end of the negotiate from what you initially agreed on, walk away.
The process of buying a car is difficult but price negotiations are harder. Sales representatives know this and can use this fact to tire you out and make you agree with their terms against your better judgement. The process can be simpler if you’re armed with the right resources and the will power to stick to what you want.