Tips for Negotiating with Auto Dealers

« Back to Home

3 Things You Need To Do When Purchasing A New Car

Posted on

When you purchase a new car, there are a few things that you need to do. First, you need research the specific new cars for sale that you are interested in purchasing. Second, you need to have a financing offer in hand before you head to the dealership. Third, when you start to negotiate the car, treat each component separately.

Research the New Vehicles that You Are Interested In

You no longer have to show up at the car dealership and rely on the car salesperson to tell you all about the vehicle that you are interested in purchasing. Instead, you can do a lot of research before you go to the dealership.

When you are purchasing a brand new vehicle, you want to make sure that you are purchasing a vehicle that you actually like and really want. You want to make sure that the vehicle you are purchasing has all the features that you need to have in a vehicle.

You also want to make sure that you are okay with all the features that come with the car. Maybe you don't want a vehicle with brake assist, or you don't want a back-up camera. Be sure to find out what features can be added and subtracted from the vehicle.

Have a Financing Offer in Hand

Before you head to the dealership, get a financing offer from your bank or local credit union. That way, before you even begin car shopping, you have an idea of what you can afford to take out and what the car payments will be.

That doesn't mean that you can't go with dealer-backed financing; it just means that if the dealership wants you to finance in-house instead, they are going to have to be able to offer you a better deal than your bank or credit union.

Break Up Negotiations

It is common when you purchase a car negotiations are common place. The top three elements that you will negotiate are the price of the car, the value of your trade-in, and the financing terms.

Be sure to negotiate each of these pieces individually. Come to an agreement on the price of the vehicle. Then come to an agreement on the value of your trade-in, and subtract that from the price of the vehicle that you are going to purchase and have agreed on the price. Finally, negotiate on the financing terms to determine who you want to finance the purchase through.

When looking at a new car, do your research online into the features and ratings of the vehicles before you drive down to the dealership. Have a financing offer in hand and make sure that you break negotiations into smaller components.