Buying a car, whether new or used, can be a daunting experience. Auto dealerships have mastered the art of sales, using strategies that can sometimes leave buyers feeling overwhelmed and uncertain auto store. However, if you know the secrets dealerships don’t openly share, you can turn the tables and walk away with the best deal possible. Here’s what you need to know.
1. Timing is Everything
Car dealerships have monthly, quarterly, and yearly sales goals. Visiting a dealership near the end of a sales period can work to your advantage. Salespeople are often eager to meet quotas, making them more willing to negotiate better deals. The best times to shop are:
- The last week of the month
- The last quarter of the year (October-December)
- Holiday sales events like Black Friday and Memorial Day
2. Research is Your Best Friend
Before stepping foot into a dealership, arm yourself with knowledge. Use online resources like Kelley Blue Book, Edmunds, and Carfax to determine a car’s fair market value. Knowing the invoice price (what the dealer paid for the car) helps you negotiate with confidence. Also, check for manufacturer incentives, rebates, or dealer discounts available at the time of purchase.
3. Don’t Reveal Too Much Information
Salespeople are trained to ask questions that help them gauge your budget, urgency, and interest level. Be careful not to reveal too much too soon. Avoid stating:
- Your maximum budget
- How much you’re willing to pay per month
- If you’re trading in a car (until after you negotiate the purchase price)
4. Get Pre-Approved for Financing
One of the biggest profit areas for dealerships is financing. They often mark up interest rates to make extra money. To avoid this, get pre-approved for an auto loan from your bank or credit union before visiting the dealership. Having a pre-approved loan also gives you more bargaining power.
5. Beware of Add-Ons and Fees
Once you agree on a price, dealerships often try to upsell extras like extended warranties, paint protection, and VIN etching. While some add-ons may be useful, many are overpriced or unnecessary. Always scrutinize the final bill for hidden fees such as:
- Documentation fees
- Dealer preparation fees
- Advertising fees
If you spot any unnecessary charges, negotiate to have them removed or reduced.
6. Test Drive More Than One Car
Even if you think you’ve found the perfect car, test drive multiple options. Some vehicles might offer better comfort, visibility, or features than others. Also, test driving several cars allows you to compare deals across different models and dealerships.
7. Be Prepared to Walk Away
One of the most powerful negotiation tactics is your willingness to walk away. If a dealer isn’t meeting your expectations or is unwilling to negotiate, don’t be afraid to leave. Often, they’ll call you back with a better deal rather than lose a sale.
8. Consider Certified Pre-Owned (CPO) Cars
If you’re looking for a quality used car, Certified Pre-Owned (CPO) vehicles offer a middle ground between new and used. They come with manufacturer-backed warranties and have undergone thorough inspections. CPO cars can save you thousands compared to buying new while still offering peace of mind.
9. Leverage Competing Offers
If you’re shopping at multiple dealerships, use competing offers as leverage. Letting a salesperson know you have a better deal elsewhere can sometimes push them to match or beat the competition.
10. Read the Contract Carefully
Before signing any paperwork, read every detail carefully. Ensure all negotiated terms are accurately reflected and watch out for last-minute changes or unexpected fees. If something looks off, don’t hesitate to ask questions or have a trusted third party review the contract.
Final Thoughts
Buying a car doesn’t have to be stressful if you go in prepared. By understanding dealership tactics, doing your research, and negotiating strategically, you can secure the best deal possible. Remember, knowledge is power, and the more you know, the better position you’ll be in to save money. Happy car shopping!