How to Get a New Car for Less
There are those people that insist online auction sites are the best way to go, but while there might be great deals to be found, the old adage generally still holds true: you get what you pay for. For personal assurance -- warranties and guarantees -- the dealerships with un-virtual businesses are far-and-away the safest bet. While digital is cool, it´s simply smarter to go through a dealership with a literal lot.
The simple fact is, car dealership are for-profit businesses that have costs to cover and expenses to manage, even those in the virtual world of online shopping.
However, that isn't to say you should be satisfied paying sticker price. While times have changed and most dealerships do not give discounts for cash and haggling over extras is not simply expected as it once was, that does not mean negotiations are a thing of the past. While the landscape has changed, if you can navigate the art of finding a deal -- of negotiating -- getting a good price on a new car is just as likely as ever.
The secret to negotiating in the digital age is understanding how you can save money on a new car and where and when you should try. Below are 6 tips from the Improv Traffic School on hot to get discounts on your next new car.
Compromise but Pursue
The first thing to decide is what new vehicle you want to be driving. Once you've made a decision, research the vehicle. Yes, features and specs are always important to know, but one of the easiest ways to get a good deal on a new car is to understand what extras raise the price to the greatest degree and which extras are the most reasonably priced. Almost all vehicles have more than one trim level. That is to say, the pricing of a vehicle is graduated with respect to the extras you want.
While we would all like our new car to have everything under the sun, it is very simple dramatically reduce the price of a vehicle by prioritizing the extras that mean the most and those which you can live without. Once you have prioritized your extras needs, add up the sum cost of the vehicle with the cost of the extras included, then the cost of the vehicle without them.
After you understand the value of both vehicles, begin searching for a vehicle that has the extras you want, but at a lower price than you expect to pay after your calculations. Look for vehicles that do not have all the extras you want, but that are close the price of the same vehicle without any extras.
Save money by researching the value of the extras.
Research the Value of Your Trade-In
Research the value of the vehicle you plan to trade-in or sell to make room for the new one you want. Often times you can sell your vehicle online or through the classifieds for a better price than you would have been offered to you if you were to leverage it as a trade-in. This is especially the case if your vehicle is older or a make that is common and difficult to sell.
Make no mistake, cash in hand is still a considerable bargaining chip.
On the other hand, if your trade-in is of similar or equal value to the new car you want, it may be worth your time to hope the trade-in value is higher than you would otherwise fetch on the open market. Regardless, you will not know until you talk to a salesperson and compare their offer to what you have researched and decided you can get for your vehicle by selling it on your own.
Go Slow and Make Your Decision Over Time
Especially if you are extremely excited about getting a new car, slow down, breath and think about what is best for you as opposed to what will provide the most instant gratification. By being impatient, a person is prone to pay a higher price for a vehicle than they might of had they taken the time to do their research. Another mistake a person can make by getting into a hurry to get into a new car is sell their care for a lower price or accept a lower trade-in offer than they should have.
Another thing to consider is the fact there are better time of the year to buy a vehicle than others. A few months before the new year and a few months after are both exceptional times of the year to buy a new vehicle. People, and that includes those that work at and own dealerships are often either stressed about the money they need for the holidays or stressed because of the money they spent. In addition, the new year´s models are soon to come out or have just. That means dealerships need to get last year´s models off the lot.
Something else to remember is that by visiting a dealership several times and explaining what you are looking for and what you would like to pay, the specs and the extras you want and when you plan to make a purchase, you not only show the salespeople that you are serious about a new car, but that you have a cool head and know what you should be paying. Too many of us go into a dealership overly excited and end-up gut shot right in the wallet.
Make Sure New to You Isn't´t New Enough
One fact is as old as wheels themselves, new is always more expensive. Make sure you can look in the mirror and honestly tell yourself 1) you can afford a new car and 2) a new car is what you want. While there isn't a feeling quite a wonderful as looking at the odometer and seeing a single digit, there is something to be said for getting into a new-er car and sitting on a wallet that still has some plump to it.
Often times, the best deals on the lot are last year´s models that are are sitting new to this year´s, dealership demos and late model, low-mileage vehicles. Another thing to remember, if you can find a late model -- or last year´s -- that lead up to a new car that has been re-engineered, you can definitely save more money.
Just like the rest of us, car dealers enjoy compliments. If someone you know has the vehicle you like, ask them where they purchased it and if they would mind if you used them as a referral. One of the best ways to get a discount on a new vehicle is by making certain that the salesperson or dealership owner believes you want to buy a vehicle from them because of the way he treated your friend.
Look at it from the dealer´s perspective. He is thinking, so-and-so that I sold a vehicle to three months ago is sending business my way. If this person goes back and tells his buddy that I accommodate his needs, there is a good chance he will send more business my way in the future. In other words, him giving you a discount is a good deal for both parties involved.
Shopping Around Has a Whole New Meaning
Shopping for cars is no longer something you must do within a 100 mile radius. Shopping around now means you can shop anywhere across the country. The fact is, if you can save $1,500 on a vehicle for buying it out of state or $4,000 for buying it out of the country, there is nothing preventing you from finding that deal any longer.
Any longer, odds are that you probably can´t get the best deal at your neighborhood dealership. What you need to be asking yourself is whether or not the extra money you save will be less than the money you spend transporting it back -- a one-way airline ticket for you, food, transportation, etc. -- and how loyal you feel you are required to be to your local dealer.
If you have no ties to the local or regional dealers that you would otherwise be severing, by all means, really look around. Get online and begin comparing prices between dealerships.
Today´s Market Means More Options
Today, it is much easier to decipher a good deal from a bad one and much easier to find the deal you want. By getting online and doing your research, then your search, the odds of you saving a great deal in relation to the guy that just walks into the local dealership are much, much greater.