Car Buying Tips We Can All Use

Haggling with a Honda dealer is possible even with a popular car such as the Fit. If one dealer refuses to budge on price, go to the next one.

If you are searching for a new set of wheels, then you understand the amount of stress involved in your search. Just ask the average person what they dread most in life and many will tell you that “price haggling” ranks right up there with visits to the dentist.

Not too many shoppers come away from the transaction thinking that they got a good deal; if people are truly candid, they’ll admit that they got ripped off or could have held out for a better deal.

Haggling Isn’t For Everyone

Other than shopping at a “no haggle” dealer – Saturn, for example – what can you do to ensure that your car buying experience is a good one? Is that even possible? Let’s examine various ways you can gain control over the car buying experience so that you can save yourself some time, money, and avoid tons of agitation.

Avoid Popular Models. Several Japanese brands are sold at full price and bargains are hard to find. However, if you do some research you should be able to trim several hundred dollars off of the sticker price or secure a very low borrowing rate should you choose to finance your vehicle through the manufacturer’s financing arm. If the dealership doesn’t want to bargain with you, then find another Toyota, Honda, Nissan, etc. dealer who will.

Buy Last Year’s Model. Not every car is a top seller with some models still on dealer lots as the year ends. This doesn’t mean that there is something wrong with the car, rather the manufacturer has an oversupply of inventory. In this current market where supply is definitely outpacing demand, you can get a deal on last year’s model even better than the advertised discount. What’s more, if it is a car that has been discontinued or the previous generation of the same, you have additional room to negotiate.

Put together your own financing. When buying a car, you should negotiate the lowest possible price and talk about financing after a deal has been struck. If you come into the negotiation with your financing already covered, then you have additional negotiating power. If this is an all-cash transaction, then you’re in an even better position to demand a greater discount.

Get equipped. Consumer Reports offers a report detailing exactly how much a car should retail for. You can purchase a report on any model and discover what the dealer paid for the car. The price you end up paying should be well below the sticker price, closer to the dealer’s cost. Even buying a car “below dealer cost” is possible as automobile manufacturers will sometimes offer incentives to their dealers in a bid to move unsold products.

Buy your car through a club. Car clubs, including those offered by warehouse clubs such as Sam’s Club, can be a way to purchase a new car at a discounted rate without having to pay full price. Each club has their own money saving methods, but in most cases you should be able to save money and avoid the negotiating.

Wrapping It Up

Finally, if you are the sort of individual who enjoys haggling, then your car buying experience is not likely to turn out bad. You already know how the game is played and winning for you is simply securing the lowest possible price. For other shoppers extra help is needed, assistance which can save you money. Do not let your emotions tell you, “I must have this car” otherwise you will probably pay much more than you should for it. Don’t fall for the dealer sob stories about how they can’t profit off of the sale of a car to you. If they can’t figure out how to make money, then that is there problem, not yours.