One of the strongest evidence that the customer is king as far as automobiles are concerned is the intense competition that all manufacturers engage in to get customers inside their dealerships. Helping customers to swing deals towards their way more than ever before are tight credit, incentives from both the manufacturers and the government, and the requirement of manufacturers to keep production lines functioning. Some smart tips for customers who want to get the best deal:
Use the Internet to Bargain
If you are interested in a particular model you don’t even have to visit the dealership; just pick up the phone and have the car coming over for the test drive.In the case of the purchase decision coming through, the paperwork can also be executed at home or office, if you so wish. However, as far as the price and financing are concerned, settling the details over the Internet can save you a good amount. This is because typically the better deals are available from salesmen operating over the Internet as they are salaried and not driven by the commission on sales. It is possible to save up to $2,000 this way. Negotiating the financing over the net also saves you from being forced to buy add-ons that can wipe out the benefit of your Internet bargain.
Get the Dealers to Fight for Your Custom
Once you’ve decided on the make and model, make inquiries to a number of dealers over the Internet indicating what you want and when you want to purchase. Ask them to quote their best prices and let them be aware that you are talking with other dealers too, and will settle for the lowest price only. It helps to be as specific as you can even to the extent of the color and accessories. Don’t blindly proceed with the lowest quote – ask what the price includes as that will save you from add-on fees later.
Get Your Own Financing
Even before you start shopping for your car, you should tie-up the financing. Having a pre-approved loan can make you more confident when dealing with the car salesmen, and you cannot be persuaded to buy cars more expensive that you had budgeted for. It also enables you to avoid the reallyexpensive financing available at the dealerships. The best thing is to apply to the local banks and the credit unions and see who can give you the best deal. The trick is to make all the application in a 2-week window so that they will be treated as a single inquiry with the least impact on credit. The typical approval period is 60 days that should be more than adequate to select the model.
If you are in the habit of changing cars periodically and do not clock up excessive mileage, you could look at leasing instead of buying. The down payment is typically less, as also are the monthly payments. At the end of the lease period, you simply return the car and walk away. Even early termination of leases that usually work out to be very expensive can be better managed through online lease buyout platforms like https://leasequit.com/.
Vehicle Price Negotiation Comes First
The car trade is cleverin mixing up the car price, financing, incentive, and trade-in values. Make a proper distinction in your mind and try and keep them all separate. Focus on getting the best price for the model you have selected. As explained earlier, the Internet can be your best friend but if you want to talk to a physical dealership, negotiate hard, and get the best offer after which, you can focus on the incentives and the trade-in that would be subtracted. Do not succumb to the lure of add-on service packages, fancy accessories, etc. at this point of time.
Explore the Market for Your Existing Vehicle
While tradingin your existing car at the new car dealership may be more convenient, it is unlikely that you would get the best value. It pays to explore the market at the used car dealers and find out if you can get a better deal with a straight sale.
Author bio: Charles Meyers is a news correspondent for a reputed automobile magazine. An auto enthusiast, he also writes articles on automobile finance, including the emergence of lease termination and buyout platforms like http://www.leasequit.com/