You may be of the opinion that you’re going to get taken advantage of no matter what when buying a car; but this doesn’t have to be the case, especially in today’s market.
For most, the surest and easiest path to an awesome deal on a new car is by using the great service and huge buying power of a Broker like New Cars Plus.
But we know that some of you like to ‘do battle’ with the Car Dealers yourselves, so if that is you, here are 10 tips to help you haggle!
- Educate Yourself
In order to get a good deal, you must first know what a good deal is. This requires doing some research to find out what incentives specific car manufacturers are offering. We recommend searching sites like racq.com.au www.redbook.com.au AS WELL AS the manufacture website to educate yourself on current car prices, reviews, financing, and more.
- Decide What Car You Really Want
While it’s easy to be tempted by a great deal, you should make sure the car is actually the one you really want. You need to be able to see yourself driving it for 3 or more years. This will prevent you from making an impulse buy and a very expensive regret or mistake. Importantly, customers who ask a sales person for “the best price” on 3 different cars, are never taken seriously so when it comes to striking a deal, know EXACTLY what you want before talking price.
- Buy at the Right Time
Since next years models typically come out in September, a good time to buy this year’s model is generally from August to October, as dealerships are more motivated to move outgoing models off the lot. Sales staffs are also usually trying to hit a quota at the end of the month, so this is a good time to buy as well. Of equal significance is your own timing – ‘dipping your toe in the water’ before you are really ready to commit will only get you so far.
- Remember RRP is just that – “Recommended”
Smart buyers know that there’s no such thing as a “fixed cost.” You can not only negotiate the recommended retail price of the car, but also the add-on fees that dealerships want you to think are set in stone.
- Negotiate the Whole Package together
There’s nothing worse than thinking your getting a good deal at first only to find that you’re not getting the trade-in price, interest rate, or incentives that you expected. You should insist the dealership gives you the final cost after all these things are added in before you commit.
- Leverage Supply & Demand
Most Brands have moments of the year where they have too much stock of a particular model. Look out for those periods where a Manufacturer is heavily advertising a particular model – it usually means they have more stock than they would like. Likewise this can apply to individual dealers. You might get a price from Dealer A who only has one or 2 of your model available but Dealer B has 10 – usually making them more flexible on the final price.
- Make Dealers Compete for Your Business
When you’ve decided on the car you want, it’s a good idea to contact a handful of dealerships and ask each one for their best price. Letting them know you’re talking to other dealers will start a bidding war, which will drive the price of the car down. Just remember each car you’re looking at has the same features so they are comparable.
- Get a Preapproved Loan
It’s also a good idea to shop around at a few banks to get the best loan rates and terms in advance. A preapproval is usually good for 60 days, which should be plenty of time to find the car you want.
- Get a Few Offers for Your Trade-In
A dealership may give you a great deal on a new car but low-ball you on the trade-in. So before you buy, go around to various dealerships and find out what they will offer you for a trade-in. The one who offers you the best ‘change-over’ (the new car price less the trade-in price) is the one to go with.
- Ask for a Dealer Swap
Do you have a dealer that you trust and have done business with before but they don’t have the vehicle you want? Ask if they can do a swap with another dealership. The dealer can likely find a way to make it happen.