Negotiating
a Deal on a New Car
It’s the car you
have been dreaming of: the perfect color, perfect options, perfect
fit for you. All your planning and preparations fly out the window
as you run and embrace the vehicle screaming, “I have found
it! My dream car!” SNAP OUT OF IT! Leave your emotions at
the door. Be willing to walk away if the deal is not going your
way. There will be other cars and other dealers. If you feel you
will be too emotional, bring a rational thinking friend to help
you out. Follow these rules and you will likely drive away happy!
1. Starting
Out.
You probably have a good idea as to which car or truck will best
suit your needs, as well as a good idea of what to pay. Now you
need to narrow the research
even more to find the exact car with the options you have chosen
- and then determine your target price. Start a "car buying
folder" and begin collecting the information you will need
to get what you're looking for.
2. Using Incentives
& Rebates
Today's new car market is crowded and competitive. Many new cars
are offered with attractive incentives to make buyers choose a particular
model. In some cases, the cars with the best incentives are those
that aren't selling very well on their own.
Often, the incentive
comes in the form of a cash rebate. A car might be selling for $22,000
but the manufacturer is offering $3,000 cash back for a final price
of $19,000. Research what incentives, if any, are offered for the
car you want to buy. Print out this information and keep it in your
car-buying folder as you move to the next step.
3. Pricing
the Car.
Salesmen will usually point to a car's "sticker price"
as the amount you have to pay. However, what the dealership is willing
to sell a car for is often well below the sticker price. How do
you know what to pay? Use our online
tools, or the NADA Guide.
4. Finding
the exact car you want to buy.
By now you should have a very specific idea of the car you want
(make, model, trim level, options and color). The more flexible
you can be about these specifics, the wider the range of the cars
you'll find available. Ultimately, the ability to consider several
versions of the same model can give you additional bargaining power.
You can build your vehicle online at Auto
Smart.
5. Test driving
the car salesman.
As you call dealerships to locate the exact vehicle you want, you
can also test drive the Salesman. In other words, determine if this
is a person you want to do business with. It's a good idea to consider
this issue ahead of time, before you get to the deal-making phase.
6. Trading
in your old vehicle.
If you plan to trade in your old car to the dealer, you probably
will not get as much money toward the price of a new car as if you'd
sold it yourself to a private party. However, trading in may offer
some advantages, such as solving all of your car-buying problems
in one visit to the dealer. You unload a hard-to-sell car with no
newspaper ads, DMV lines or tire-kicking buyers involved. In some
states, you will even pay less sales tax on a deal that involves
a trade-in.Begin the process by looking up your vehicle's trade-in
value online
through NADA Guide or in the Kelley Blue Book.
7. Negotiating
for your lowest price.
Many buyers like to handle the question of price before they even
go to the dealer. Everyone has their own idea of what makes a good
deal, but most people just want to know they got a fair price.
Internet salespeople
are willing to discuss price over the phone - even by e-mail. Be
sure to shop several dealerships to make sure you're getting a fair
price. Don't be afraid to share a lower price with another dealer
to see if they'll match it. Use
Auto Smart and submit your dream car to dealers who will contact
you with their best price.
8. Closing
the deal.
If you feel good about the price you have been quoted, it's time
to take a look at the big picture. Many buyers focus on the cost
of the vehicle and ignore the related expenses. Besides the cost,
you will pay sales tax and various fees which vary from state to
state.
The simplest way to
estimate total cost is to ask the salesperson to fax you a worksheet
and invoice before you go to the dealership. This way, you'll be
able to review the figures in a relaxed environment.
9. Reviewing
and signing the paperwork.
At the dealership, you will be presented with the contract for your
new vehicle and a dizzying array of forms to sign. Make sure the
numbers match the worksheet and no additional charges or fees have
been inserted. You will also be asked to sign various forms that
register your new vehicle and transfer ownership of your trade-in.
Understand what you are signing and what it means. Ask questions
if you are unsure, and don't feel like you have to hurry. Buying
a car is a serious commitment and it's the F&I Manager's job
to ensure you are comfortable with every piece of paper involved.
Remember, once you have signed the documents there is no going back.
10. Inspecting
and taking possession of your new vehicle.
Most dealerships detail the vehicle and provide a full tank of gas.
You will have one more chance to inspect the vehicle before taking
possession. Make sure you walk around the vehicle, looking for scratches
in the paint and wheels or dents and dings on the body. If you are
paying for floor mats make sure they are included. If anything is
missing, or if any work needs to be done, ask for a "Due Bill."
By placing the request in writing you will be able to come back
and get the work done later.
DUFCU offers 84
month car loans at a low interest rate. Find out more at our
Auto Center
or apply
online. |
