Never walk into a dealership to purchase a vehicle for the price advertised on the sticker in the window and never start negotiating without first doing your homework. Instead obtain a copy of the car's cost guide containing detailed information about the invoice cost, discounts, warranties, safety ratings, and much more. The information can be easily found on the Internet from company's offering the service for a small fee. Inquire at AAA®, Consumer Reports®, your insurance agency, or a bank for further details. The information will also include costs for additional vehicle options and may include vehicle safety evaluations and ratings. The information will greatly help when negotiating a final price for the vehicle. The price for used cars can be determined by the same report and also from the Kelley Blue Book value of the vehicle. The Kelley Blue Book value can be found at the dealerships, banks, and http://www.kbb.com.

        Always question any fees and taxes found on the sticker in the window and attached to the final bill of sale. The fees and taxes may be unnecessary and may be negotiable. The dealership may be attempting to charge extra with the intention of receiving more money from you even after you have agreed to the purchase price of the vehicle.

        Selling a vehicle on your own will yield a greater return than as a trade-in to the dealership. The dealership will offer a price for the vehicle much lower than the Kelley Blue Book value because the difference will be their profit (after necessary repairs) when sold to someone else. Selling the vehicle yourself will result in the profit being placed into your pocket. Try to sell the vehicle before purchasing the new vehicle so you can use the money as an additional down payment to lower your loan payments. The trade-in to the dealership does offer a great convenience, but at the expense of less return.

        Consider purchasing the previous year model of the same car when the new year models are introduced. The dealerships will work some great deals because they want to make room on the lot for the newer models for which they can receive a larger profit. The car will be brand new and have the same warranty as purchasing the current year model. Also consider purchasing a demo car, the same one found in the showroom. The dealership must sell the showroom/demo car at a discount because it is against the law to sell the vehicle as new.

        Consider vehicles that are virtually the same, including the engine and design, except with a different name. In many cases, the same vehicle under a different name can be found cheaper. For example: older models of the Mitsubishi Eclipse® were the same as the Eagle Talon®. Although, the price difference may be an indication of the vehicle's quality. You will need to perform some research comparing the two models. A great resource is Consumer Reports that offers research information through their web site at http://www.consumerreports.com for a small fee.

        Negotiate a price for the vehicle before presenting any discounts or rebates. If the salesperson is aware of the price reductions available to you, the price will be adjusted accordingly to ensure the maximum profit and commission will be received. Try not to give the salesperson the upper hand by placing all your cards on the table. After the price is negotiated, then present your discounts. Possible discounts can include rebate coupons from the manufacturer or credit cards, such as the GM card® and discounts for recent high school or college graduates. If you are not satisfied with the price offered, then leave. Return another day to speak with a different salesperson or visit a different dealership.

        Enter a dealership to purchase a vehicle at an inappropriate or inconvenient time such as an near closing on a major holiday. The salesperson will probably be very anxious to complete a sale and go home. Keep an ear open for a salesperson close to being salesperson of the month. The loss of commission from a couple of extra sales may be less than the bonus received from the achievement award. Also, if a dealership or salesperson is behind on their monthly goal, you can get a good deal so they can reach their quota for the month.

        If you are not satisfied with a price offered, leave! If you have left the salesperson your phone number, you may be contacted with a better offer to entice you to return. Since you were contacted, the salesperson is indicating your business is desired by offering you a portion of what you could possibly receive. Therefore barter for a better price. Do not give the indication you must have a vehicle. Otherwise, the salesperson will then know you are willing to pay more for the vehicle and the salesperson will most likely take advantage of that observation.

        Don't be intimidated by sales tactics offering you a special deal that is only valid for today. The salesperson is attempting to entice you to purchase the vehicle today. Returning another day will typically yield the same special from another salesperson. If the same special is not offered, then inform the salesperson of the special deal previously offered. You should be offered the same special deal because the salesperson wants your business.

        Another choice that doesn't involve negotiating the price of a vehicle is to take advantage of the no-haggle agreements offered by some credit unions or member service organizations like AAA Auto Club®.. The services may be free or require a small fee. In any case, you will receive a good price with a lot less hassle.

        It is possible to purchase a new car from a dealership for the same cost as a one or maybe two year old used car. The reason is due to dealership and manufacturer rebates and negotiations with multiple dealerships. The greater the competition in your area, the greater the discount you can receive by involving dealerships throughout the state, and even outside your state, in the negotiation process. The good place to start is to look at http://www.edmunds.com to determine the invoice price including all the options and to determine the Time Market Value (TMV) of a vehicle. The TMV indicates the average price people are paying for a vehicle in a particular area. Contact multiple dealerships asking for the fleet manager or submit a request via the Internet which will be handled by the Internet sales manager to start the negotiation process without stepping into the dealership. The only reason you should enter a dealership is for the test drive and to sign the paperwork. The greater the distance you are willing to travel to purchase the vehicle, the greater the discount potential. This idea only works when there is a great deal of competition in the your vicinity. Areas in Florida and California would have great potential, while areas in Montana and Nevada will not because of the lesser number of dealerships. Concerns to consider before purchasing a vehicle using this idea is to determine the sales tax for that particular county or city. Also, if you purchase a vehicle from out of state, then determine the costs for registering the vehicle in the state purchased and the state you reside. The two concerns can provide a difference that can significantly impact your decision as to which dealership to purchase the vehicle.

        An excellent source for learning the tricks of the car dealership trade and for obtaining additional information about a particular car can be found at http://www.carbuyingtips.com. Most dealerships do not like that web site at all because it reveals their secrets. Therefore, use all the information to your advantage before making any purchase of a new car.


Return to Cars Topics.