Maximize your car deal
If you’re in the market for a new car, before heading over to the dealership, you might want to checkout The Simple Dollar’s ten steps to maximize your car deal. According to The Simple Dollar, “If you really want to maximize your next auto purchase especially if you’re looking to buy a late model used car, here are ten steps to follow to make that purchase a reality.” The following are my favorites from the list:
2. Research the correct value of your trade-in. Know what your car is worth. There are ample places to research it online, but be aware that the “sell” price and the “trade” price are two different beasts. You can probably get more by selling the car yourself, but it requires some additional legwork. Either way, don’t go on the lot expecting to trade without having any idea what your car is worth.
4. Be aware of any dealer-specific offers. In areas where dealers are competing, one dealer might have some special offers in order to attract customers. Know what these are before you go on the lot. My favorite one was when a local dealer had a “$500 off” coupon in the paper. A friend of mine went in and negotiated the car price before anything else and when the deal was basically finished, he whipped out the coupon. The dealer sadly agreed to it; it turned out that the coupons were seen as an “advertising expense.” He wound up with a new car below factory invoice.
Do you have any tips that didn’t make the list? Tell us what worked for you in the comments.
Ten steps to maximize your car deal - [The Simple Dollar]
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Comments
Conrey says on January 22nd, 2007 at 8:57 am
I used to sell cars. And that list is far from great. Here is the best way to get a good deal on a car.
1) Go to http://www.edmunds.com and research the invoice price on the car you wish to buy - equipped how you want. Notice also the TMV value that Edmunds gives.
2) Go online to a site like cars.com or even from edmunds.com itself. There are places to send a request to a number of dealers at once. Avoid giving a fake number if possible.
3) When the dealers contact you via phone or email, confirm that they have your vehicle in stock and ask how close to the invoice price they are willing to sell it to you. Most dealers will sell it at or near ($500) invoice and still give you any applicable rebates.
4) Ask for your Out the Door price on the car - including sales tax, licesnes, and any other additional fees the dealer is charging. Do not mention monthly payments or anything else such as a trade until you have this number. The out the door figure is the only one that matters.
5) Once you have your best out the door figure, go to the dealer, drive the car and follow the steps the article gives for your trade if you have one.
6) If possible, have your financing arranged (your bank or credit union or online) before you arrive, but be willing to get a better rate if the dealer can do it.
7) If ANY thing changes the out the door number (other than your trade and possible payoff) such as the dealer “forgot” a fee when you were on the phone or this car has “extra” equipment on it, then go to the next place - don’t deal with liars, there are good salesman out there.
Dave says on January 22nd, 2007 at 4:03 pm
I saved a ton by getting a price quote from an online site that sells cars first and brought it to the dealer. I said, that I was going to buy from the site unless they wanted to try and beat it. Well, they did and I got it for less than invoice
Pooply says on January 24th, 2007 at 5:32 pm
I alway take My lawyer with me