How to get the lowest price when buying a car
Are you looking into buying a car? The timing could not be better. The dealerships are trying to “move the metal”, so they are willing to negotiate, plus there are a lot of sales already. Whether you are buying a new or prior-owned vehicle it is always a good idea to start with your homework. So, how do you get the best price when car shopping? Here are a few tips on how to play that game:
Look for the vehicles that give you most for your money. What you want is a good performance and reliability with a low owner’s cost over the first five years. That includes depreciation, fuel costs, insurance, interest on financing, maintenance, repairs, and sales tax;
Do not jump at the new models with a wide array of rebates, special pricing programs, low- interest financing and other sales incentives. Remember that the most attractive incentives are on the slowest- selling models. People don’t buy them for good reasons;
Consider a used auto, especially the late-model vehicles. It may have a great value, if the mileage is low and the manufacturer’s warranty is still in effect. A car of 3 years old has depreciated a lot. You’ll save on insurance and taxes. Just make sure to have it inspected by an independent mechanic for any hidden damages or needed repairs;
Do not be scared off by the price sticker on the window – it is only a suggestion. To get the lowest price you may need the invoice price, any national or regional dealer sales incentives, and any holdback. You can find it on the auto-pricing web sites and in pricing guides (check Consumer Reports New Car Price Reports, for example). Compare your target price against the quotes provided by dealerships through auto-selling web sites;
Look up the value of the used car on such web sites as Edmunds.com and kbb.com (Kelley Blue Book). Do not forget to compare prices in the ads in local newspapers and on online used car selling sites (Autotrader.com or motors.ebay.com);
Negotiate! Start with your target price for a new car and tell the salesperson you want the lowest markup over that price. Get several competitive bids from different dealerships. The salesperson will be more competitive if he knows you have more choice. Ask for less than you are prepared to pay when buying a used car and go up from there. Justify it by the flaws, equipment problems or recommended repairs by the mechanic;
Do not be rushed if the dealer says that someone else is interested in the car you want. They are trying to pressure you. And if not, there are always other cars out there;
Remember that most of the time sales incentives come from the automaker, not the dealer. So, you can get both a low price and the incentive.
Always remember that you are in charge. Sometimes the most effective tactic is to head for the door.
