How To Negotiate A New Car Price
With all of the turmoil in the auto industry these days (GM just declared bankruptcy) it seems like this might be a good time to buy a new car. After all, they really need to sell those cars don’t they? Yes they do, but it is still important to be able to negotiate with the car dealer. What you need to know before going to the car lot.
Know exactly what car you want to buy. Do your research online, in magazines, etc. to decide which car model, options, etc. you really want. This is important because the dealer may try to lead you away from the car you want to buy to the car he wants to sell you.
Decide on your budget. Take other factors into consideration such as insurance and gas mileage when deciding how much you can afford to pay for that new car. Remember when you get to the dealer you need to negotiate the price of the car and not the monthly payments.
Check out financing with your bank or credit union. Get a quote that you can take with you to the car dealer. Getting pre-approved for a loan is even better. But, also consider the financing the dealer may offer. It could be the best deal but you can only know this if you have done your homework.
Know the dealer’s cost. Do your research online to find out what the dealer most likely paid for the car you want to buy. You should try to start your negotiations somewhere between the dealer’s cost and the MSRP (manufacturer’s suggested retail price) as stated on the window sticker.
Trade-in or down payment? If you want to trade in your current car be sure to check out what your car is worth before you go to buy your new car. The dealer wants to give you as little as possible for your trade-in.