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Five Tips to Help You Negotiate for Your New Car Purchase

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The Boston Convention and Exhibition Center is where the 2014 New England International Auto Show is being held. From January 16 to 20, car enthusiasts can view the latest offerings from auto makers. The impressive showcase of autos is something you surely will not want to miss if you are on the look out for a new car.

If you already have a car in mind, you can now focus on purchasing it. It is no secret that buying a car, new or used, requires negotiation. This can be tough, especially because you are up against people who do it every single day—car salesmen. Nonetheless, you can make the task easier for you by following the five tips below:

 

Arm yourself with information

Do your research on the vehicle/s you like and know the specifics. Determine what options you want and learn the price of the car that comes with these. Find out how much the dealership paid for the vehicle, and what the said vehicle’s true value is. Your goal is to buy the car you want for the best price, and the best price is not the sticker price.

Take advantage of online resources (i.e., Kelley Blue Book, Edmunds.com, TrueCar.com) when doing your research. You can only negotiate well if you do your homework.

Get financing first

If you are not paying in cash, forget financing from the auto dealer. Secure a loan elsewhere so you can shop at the dealership like a cash buyer. Remember that dealers get a cut from arranging loans for the customer, meaning that you could be offered a higher rate for getting financing with their help. You could save yourself money by obtaining a loan from your local bank, credit union or even Boston Auto Approval Center!

If for whatever reason you are determined to get dealer financing, at least find out what you can get from other lenders before you go to the dealer. Doing this will enable you to negotiate in your favor. In the event you are offered zero-percent financing, you will know if it is indeed a good deal.

Shop around

Find out which dealerships are offering the car you want. Before you visit the dealers, contact them by email. Ask for quotes (specifically the out-the-door price), but don’t give details such as your financing or trade-in. When you know the prices offered by competing dealers, you put yourself in a strong position for negotiations. As much as car dealers want to get the most money out of every sale, they would rather get the customer just to make a sale.

Discuss purchase price, not monthly payments

Most car salesmen will talk to you about monthly payments as soon as you walk into the lot. Refuse to discuss payments. Rather, negotiate on the purchase price. If you will be buying with cash or outside financing, don’t tell the salesman about it first. Make and keep the purchase price the main focus of the negotiation.

Many say that car buyers should negotiate up from the invoice price. However, it is a better idea to negotiate the out-the-door cost, or the amount you need to pay to drive the car home. This includes the car price plus other fees.

Visit the dealership on off hours

Timing plays a key role in a successful negotiation, so shop at the right time. Avoid dealerships when they are at their busiest—nights and weekends. Stay away on Saturdays in particular. Why? When dealerships are busy, they are less likely to work with you because they have a lot of customers. The attention of the salesmen is diverted and the sales staff may not be as willing to negotiate with you with many other prospects around.

On the contrary, if you head on over to the dealership at off hours when business is slow, you are more likely to get the deal you want.

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