By Rob Miller
You're excited! You've made the decision to purchase a new car. Follow the tips below and you can save thousands of dollars on your new car purchase.
Shop around before you buy. One of the most common mistakes people make is not shopping around before they make that big purchase. The first thing you should do is check the automotive advertisements in your local newspaper before you buy. Many dealerships offer great deals in these advertisements but when you look more closely at the advertisement they will add the words "only 2 available at this price". The dealerships add these words because they could not make a profit if they sold every car at the special ad prices. Usually, the few cars they offer at the great prices listed in the advertisement may not be in the color or style you like but you will definitely save thousands by purchasing one of these specially priced cars. Don't wait! If you see an advertisement in your local paper for cars that say "Only 2 available at this price then act quickly. These cars sell fast! Dealerships offer great prices on only a few cars to entice you to visit their dealership. A common response by dealerships when you visit and ask about these cars is: I'm sorry... those cars have been sold already. So act fast! If the cars have been sold then ask the dealership to call you when more cars are available at the price listed in their advertisements.
NEVER negotiate based on monthly payments. One of the most common questions a car salesmen will ask you is: "How much do you want to spend per month?" If you answer incorrectly... that salesman is going to know he has a sucker in his hands! The proper response to that question should be: "The monthly payments are not important - the sale price of the car is what is most important to me." Never enter a dealership and ask: "Can you get me this car for $XXX per month?"
If you are planning on trading in a car then you should know what the resale value of that car is before you begin negotiations. Check the Kelly Blue book value of your used car - you'll be glad you did.
Dealer Invoice - One the fastest ways you can show that car salesman that you are an intelligent car shopper is to ask them what the "dealer invoice" is on the automobile you are interested in purchasing. What's a dealer invoice? It's the price that the dealer pays for the car from the manufacturer and you should be negotiating the purchase price of your new car based on the dealer invoice price... not the sticker price on the car window. I recently leased a Mercedes 450GL and during the whole parking lot sales pitch the salesman assured me that I would be getting the best deal in town. By the time we were sitting in his office and he had drawn up all the papers to sign, he did not once mention how I was going to get "the best deal in town". This is when I dropped the bomb. I said: "So where are the great deals you promised me? I see no deals at all in this contract and you just got done telling me for an hour in the parking lot what a great deal you were going to give me." The salesman replied: "What are you looking for?" The first thing out of my mouth was: "What is the dealer invoice price on the car?" He showed me the dealer's price on his computer and I offered him 1% above it. He reluctantly accepted the offer and I saved over $5,000.00 in less then 30 seconds!
When you first get on the dealer's lot, do not immediately ask what the dealer's invoice price is on the car you are interested in or you may scare the salesman away. The best thing to do is to wait until that salesman has spent a lot of time with you and has you sitting in his office ready for you to sign the sales agreement. That's is the best time to spring the question. The salesman is much more likely to cut you a deal after he has just spent an hour or more of his time convincing you to buy a car from him.
Don't be afraid to walk out of the salesman's office if you do not get what you want. Be polite - stand up out of the chair you are sitting in and say: I'm sorry but I don't think this is going to work out - I'm going to do a bit more shopping. I guarantee you that you will be offered a better price or some added extra options on your new car. Remember - that salesman has just spent a lot of his time trying to sell you a car and if you start to walk out on him at the end he will make an effort to stop you from leaving.
Good luck on negotiating your new car price.
Rob Miller is a freelance writer and product reviewer. Gunther Gifts is the perfect place to select a engraved gift for yourself or loved one: http://www.gunthergifts.com. Personalized gifts, groomsmen gifts, wedding favors, wedding invitations, sports theme gifts, Zippo lighters, Leatherman tools, Swiss Army Knives, custom barware and glassware, Cross pens and so much more are available for all your gift needs at Gunther Gifts. Get a custom license plate frame for that new or used car. Make a statement to the world.
You're excited! You've made the decision to purchase a new car. Follow the tips below and you can save thousands of dollars on your new car purchase.
Shop around before you buy. One of the most common mistakes people make is not shopping around before they make that big purchase. The first thing you should do is check the automotive advertisements in your local newspaper before you buy. Many dealerships offer great deals in these advertisements but when you look more closely at the advertisement they will add the words "only 2 available at this price". The dealerships add these words because they could not make a profit if they sold every car at the special ad prices. Usually, the few cars they offer at the great prices listed in the advertisement may not be in the color or style you like but you will definitely save thousands by purchasing one of these specially priced cars. Don't wait! If you see an advertisement in your local paper for cars that say "Only 2 available at this price then act quickly. These cars sell fast! Dealerships offer great prices on only a few cars to entice you to visit their dealership. A common response by dealerships when you visit and ask about these cars is: I'm sorry... those cars have been sold already. So act fast! If the cars have been sold then ask the dealership to call you when more cars are available at the price listed in their advertisements.
NEVER negotiate based on monthly payments. One of the most common questions a car salesmen will ask you is: "How much do you want to spend per month?" If you answer incorrectly... that salesman is going to know he has a sucker in his hands! The proper response to that question should be: "The monthly payments are not important - the sale price of the car is what is most important to me." Never enter a dealership and ask: "Can you get me this car for $XXX per month?"
If you are planning on trading in a car then you should know what the resale value of that car is before you begin negotiations. Check the Kelly Blue book value of your used car - you'll be glad you did.
Dealer Invoice - One the fastest ways you can show that car salesman that you are an intelligent car shopper is to ask them what the "dealer invoice" is on the automobile you are interested in purchasing. What's a dealer invoice? It's the price that the dealer pays for the car from the manufacturer and you should be negotiating the purchase price of your new car based on the dealer invoice price... not the sticker price on the car window. I recently leased a Mercedes 450GL and during the whole parking lot sales pitch the salesman assured me that I would be getting the best deal in town. By the time we were sitting in his office and he had drawn up all the papers to sign, he did not once mention how I was going to get "the best deal in town". This is when I dropped the bomb. I said: "So where are the great deals you promised me? I see no deals at all in this contract and you just got done telling me for an hour in the parking lot what a great deal you were going to give me." The salesman replied: "What are you looking for?" The first thing out of my mouth was: "What is the dealer invoice price on the car?" He showed me the dealer's price on his computer and I offered him 1% above it. He reluctantly accepted the offer and I saved over $5,000.00 in less then 30 seconds!
When you first get on the dealer's lot, do not immediately ask what the dealer's invoice price is on the car you are interested in or you may scare the salesman away. The best thing to do is to wait until that salesman has spent a lot of time with you and has you sitting in his office ready for you to sign the sales agreement. That's is the best time to spring the question. The salesman is much more likely to cut you a deal after he has just spent an hour or more of his time convincing you to buy a car from him.
Don't be afraid to walk out of the salesman's office if you do not get what you want. Be polite - stand up out of the chair you are sitting in and say: I'm sorry but I don't think this is going to work out - I'm going to do a bit more shopping. I guarantee you that you will be offered a better price or some added extra options on your new car. Remember - that salesman has just spent a lot of his time trying to sell you a car and if you start to walk out on him at the end he will make an effort to stop you from leaving.
Good luck on negotiating your new car price.
Rob Miller is a freelance writer and product reviewer. Gunther Gifts is the perfect place to select a engraved gift for yourself or loved one: http://www.gunthergifts.com. Personalized gifts, groomsmen gifts, wedding favors, wedding invitations, sports theme gifts, Zippo lighters, Leatherman tools, Swiss Army Knives, custom barware and glassware, Cross pens and so much more are available for all your gift needs at Gunther Gifts. Get a custom license plate frame for that new or used car. Make a statement to the world.
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