Tips When Buying A New Car

As a strong proponent of living below your means, I recommend that you never buy a new car.  However, sometimes people want the new safety features that are available for today’s models.  Other times they are financially secure and can actually afford a new car.

Whatever the reason, buying a new car can be a stressful and expensive experience.  Here are some ideas and tips to help you pay the lowest price for your new wheels.

#1 – Choose the time of the day carefully.  The less people that are at the car dealership, the more likely the dealer will be interested in making a deal.  Also, dealers are more likely to make a deal when they have to meet quotas at the end of the month/quarter.  Ideally you want to be the last person of the day for the dealer.

Important times to go to the dealership:

- weekday
- late evening
- end of month
- end of quarter

If you are really serious about going when there is no foot traffic.  Go in the middle of a rainstorm or snowstorm.  You’ll likely be the only person there and the salesperson will be much more willing to negotiate.

#2 – Do not start your negotiations from the sticker price, aka the suggested manufactures price.  Start at the invoice price of the vehicle.  This is what the dealership paid for the car.  You can determine the invoice price for your particular vehicle at http://www.edmunds.com or http://www.cars.com.

Once you have the invoice price make your offer the invoice price minus $500.  This is the standard rule of thumb as is a good starting point.

Here are some other tips that may help you out:

- Make sure you start the bidding, don’t get anchored by their bid price.
- Do not negotiate by the new car, use the dealer’s office.  They want you to fall in love with the vehicle.
- Don’t let the manufactures rebate influence the vehicle price.  It’s from the manufacturer not the dealership.
- Don’t let the salesperson distract you by asking how much you want to pay per month.  This is an irrelevant question in regards to the vehicle price.
- Negotiate the dealer prep fee.  All they are doing is washing the car and taking the plastic out of the interior.  Tell them you will wash the car and take the plastic out yourself.
- Negotiate a trade-in after you have finished with the new vehicle, it’s a different issue.  Plus this is an added distraction in negotiations.

Buying a car is one of the most expensive purchases a person may make in their life.  Make sure you do your homework.  And most importantly, make sure you get a good deal.

Written by admin on July 6th, 2006 with comments disabled.
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