If you’ve never purchased a vehicle before, you may not be familiar with the negotiation process. When purchasing a brand new car, you should never pay full price. Car dealers are always willing to negotiate so it is important that you think carefully before making a final decision. Statistics show that you can save between five and fifteen percent off the original car price by haggling a great deal.
Review all of your car finance options before going to the forecourt
Car dealerships will be keen to offer you a finance deal because it accounts for a huge amount of their profits. However, you’ll probably find the best deal on car finance outside of the car dealership. Shop around before going to the car dealership. See what your bank or another party can offer you in the form of car finance to weigh up your options.
Understand what you want and need before you go
It is important to do some research before you head to the car dealership to ensure that you won’t land yourself with a vehicle that isn’t right for you. Although they are only doing their job, salespeople are naturally motivated by personal gain. Ensure that you’re knowledgeable on any deals on the car that you want so you can use this to persuade the dealer to lower their price.
A car dealer may overlook the fact that a car is not fuel efficient or expensive to insure if it means securing a sale. Weigh up your options before you leave the house and do a quick bit of research into fuel efficiency and car insurance costs. You don’t want to find that you’re easily sold by a great price at the dealership, only to be hit by sky high insurance costs in the future.
Decide if optional extras are worthwhile
Many dealers have a few special deals and optional extra up their sleeves to throw out at you to try to secure the sale. If you’ve already got the price down as low as you can, there may still be room to save cash through optional extras. Try to get dealer to throw in free warranty or breakdown cover. Alternatively, try to secure a little extra equipment for your new car. On the other hand, don’t be sold by optional extras that you really don’t need. Sure, take any extras if you’re happy that you’ve gotten a good price, but don’t be sold by those alone.
Don’t give them any numbers, let them give you an offer
It is likely that the dealer will ask you how much you’re willing to pay every month. Avoid giving them a figure to work with because you may end up paying more than you’re willing to. Maybe you could state that your car is paid off so you’re used to paying nothing. Once you’ve told them what you’re willing to pay, you might have lost out on a great deal. Getting the dealer to give you a figure first is the best approach.