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When it comes to buying a car, there are some things that you should take into consideration we have some great tips. It is said that when you walk into a dealership you are expected to negotiate the price that is stated. That is the norm. Which is why most people who are shy or timid get someone pushier and more aggressive to go with them to “work over the sales man”.
If you pay the sticker price then you are letting the car dealership walk away with hundreds and perhaps even thousands of dollars worth of profit. We understand as you must that the services provided by the dealership for having the car that you want is worth something, so how much haggling you do and how much you try to re-negotiate the price on the sticker is up to you.
What you need to know is the following:
What the invoice price of the vehicle is –
Lets start at the beginning, there is a price that the car dealership pays for every vehicle directly from the car manufacturer. This is known as the Invoice Price, this money can also be made in the form of money that the dealership gets as a lump sum every quarter. This is true mostly for new car dealerships, but having said that before you go out and purchase a car you should arm yourself with information. This information is available on the web, just type in Invoice prices for the car make and model that you are interested in purchasing. The advantage of knowing this information is that you can therefore negotiate the price that is listed on the sticker and what the dealership actually paid for the car on the lot. It allows you some negotiating “wiggle room” and can be beneficial to your bottom line.
Check the Foursquare –
Foursquare is a worksheet that is used by most car dealers, this worksheet has four major quadrants, thus its called a foursquare. Purchase price, down payment, monthly payment and trade in value. Some car salespeople will try to focus on one part of this square. What is important is to remember that if you get a what seems like a great deal on the down payment can make your payments stretch out much much longer than necessary. As mentioned before the more facts you know the better you can handle the curve balls that you may face at the dealership.
Don’t be afraid to walk away –
When it comes to shopping for a car there is just one thing to remember. No one is forcing you to buy anything you don’t want to. Ok, lets be honest, if you have ever gone into a store and walked out convinced that you needed an item that is not 100% what you were looking for or even wanted then your salesperson is good. Really good. People who work at sales for a living do so because they are really good at selling. Don’t let someone convince you of something that you are not convinced of. Going to a car dealerships does not mean that you have to leave with a car. You can go and get information, you can not be thrilled with the offer and choose to go somewhere else. Another FYI is that if you threaten to go somewhere else to get a better deal you may just end up getting what you needed and wanted all along.
Shop around for financing on your own –
If you go into a dealership without doing your homework how will you know that interest rates you are qualified for? How will you know what a good going rate is for what you are looking for looks like. What you are qualified for? Credit unions, local banks or even your local bank may have some great options for you, lower rates, better interest rates.
Get your trade in value to work to your advantage –
Rule #1 if you bring a car that you wish to trade in, do not discuss it with the dealer until you get what you want. Negotiate the terms of your car once you get the interest rates you want, the purchase price you want. Remember that regardless the car dealership will be making money and you need to do what is best for you, this tricks will help you get the car you want at a price you can handle.
Do not negotiate monthly payments –
Most of us live paycheck to paycheck, most of us have jobs that pay a certain amount and that is what we have to go on. Do not be fooled when it comes to getting offered a lower monthly price, this can be a catch 22. Your monthly payments may be lower but you may be paying for it more so than not with payments that span for eternity. Do not make your negotiations based on how little you will pay a month, because your interest rates may inflate over time and you will end up paying more than you needed or wanted to.
Have no regrets on final fees –
You have found the car you want, you qualify for a good interest rate and have agreed on all the key points. Ask about fees. Find out what else will be needed of you in order to drive your shiny new car off of the lot. Get the facts and ask whether these fees are negotiable or if the dealership will assume responsibility for them in order to make a sale. Sometimes you can wiggle out of paying them, at other times you cannot, but it never hurts to ask.