Car Shopping 101
So you want to buy a new ride and you don’t want to get hustled when car shopping. Here’s a few solid tips that you should follow when looking to pimp your ride.
1. Do Your Home Work
Research, the type of car you want to buy, get an idea of what they are selling for in your market. By market we mean area. What are people in your area paying for the type of car you want to buy. Use sites like Auto Trader and Kelley Blue Book to get a good feel for what cars are selling for and how flooded the market is with that specific vehicle. Try True Car and/or Car Gurus to find what people in your area have payed for the same car in the past.
2. Ask for the Wholesale Invoice
Demand to see it and don’t pay a penny over it! They have to show it to you by law. Don’t Believe? Read this blog from Real Car Tips, about “Why it’s Important to View the Invoice When Negotiating“. Oh, and don’t be fooled by the MSRP. That’s just a number dealerships use to get you to think your getting a steal.
3. Beware of the Financing Department
They don’t know you and they aren’t there to do you any favors. Believe it or not, they are looking to make as much money as they can, ON YOU! Their job is to get you into the car not to give you the best deal.
Say No to the Extras
Sure you want heated seats, get them! You want navigation? Go for it. Just say no to the extras. When they try to sell you that extra care package, say no! It’s your money and pretty much 100% of the extras they sell are over priced.
Go to the Dealership Prepared
And by prepared we mean go with an approved interest rate from your personal bank or local credit union. Shop around for the best rate. It’s just as important if not more important than settling on a good price. The difference in just half a interest point could be hundreds or even thousands of dollars. Oh and the dealer doesn’t just give you the best rate you deserve. They might just give you 5.5% but you really qualify for 3.25%. Why would they do that to you? After all, you are a valuable customer, right? Every point the dealer tacks on over the lowest rate the bank is prepared to offer you, they split the profit. Yikes, Yeah like we said, hit up the credit union!
4. Go at the End of the Month
It’s crunch time at the dealership and the salesmen are looking to make quotas and get that last sale so they can be employee of the month. Can you blame them? Wouldn’t you want the best parking spot in the lot for an entire month, of course you would. Obviously they all have incentive based sales numbers as well.
5. Walk Away
This could be the single most important moment of the entire transaction. If the deal you landed suddenly changes at the signing table get up and leave. If you don’t get the price you are looking for before heading into the finance office, leave! Don’t be afraid to just leave! They will call you and beg you to come back! Sometimes you have to leave the deal on the table to get the best price. Worst case scenario is you get that new car a couple of weeks later. Don’t worry they make the same style car all year long and they will have what your looking for in stock next month. If you can fight the urge and impulse to buy in that single moment, you will be setting yourself up to get the best deal.
We hope this article will have you better equipped for car shopping. Remember it’s your money and your choice. Don’t let the dealership run the show. It’s your show! Be confident and prepared and if you feel like something isn’t right, it probably isn’t. Good Luck, thanks for reading and happy car shopping!