How to buy a new car, six rules that will save you big bucks.
How to buy a car rule number one…start online.
Do not even think of going straight to a dealership to buy a car. You will pay more every time. When you walk on any lot and are greeted by a salesperson you have just wasted thousands of your dollars. He or she you might think is a nice person is thinking of one thing…a fat commission at your expense.
Nothing illegal but it’s their job to sell you a car at the highest price. Hopefully you look at it as your job to spend as little as possible. It is amazing how some folks can be intimidated by this process…don’t let this be you.
How to buy a new car rule number two… do your homework online
Start on line by checking reviews of what you are contemplating buying. They will give you reliability opinions based upon lots of testing. Check customer satisfaction and owner reviews. Decide on a model. All of this can be done without making that fatal handshake at the dealership first. Visit the brand website as well, don’t expect any impartiality here just glean some info.
Decide on your model, options and go back on line and submit a request for bids. This works best in a large area where there are multiple dealers, the more competition the better for you. You will be asked for your phone number…usually not a good thing but the people who handle internet sales are not rookies …they are usually veterans that would rather sell cars to people who know exactly what they want. It is an easy life compared to the life on the floor. You will get a firm bid with all costs exposed.
I recently went through this process, with 4 dealers competing for my business. You should get a price of not much more than $1,000 over published dealer cost. It’s a place to start. Be calm, you have the edge until you write the check. Time is always on your side. You should determine what you are willing to pay, say $250 over cost as an example, but pick a number after you let the dealers compete against themselves.
How to buy a new car rule number three…pick only one dealer to demonstrate the product.
You are going to get a great price, you know that already. You don’t need to visit every dealer. Tell them when you call that you are planning to visit only one dealership. Just be firm and say that it will the dealer with the lowest price. Of course if the salesperson seems rude or short on the phone I wouldn’t visit them at all.
Make an appointment and go see the chosen dealer. Watch the smiles disappear when you walk into the showroom and say you are working with the internet salesperson. Have he or she demo the car. If it is not the car on the ebid… run. Never buy a car from a dealer when they say they will have to get it from another dealer. The ebid should have a vin number, make sure it is the same car.
Tell him or her what you will pay. Prepare to hear a thousand excuses of why the price is impossible, these performances are sometimes worthy of Academy Awards…it is all part of the game they play.
How to buy a new car rule number four…do not buy leave
If they agree to your price fine, you got yourself a car. But rare is the dealer who will meet your price on the first offer. So leave…avoid the time honored practice of being sweated. That is when the salesperson says he or she can’t make the decision and that they will have to see the boss. Get up and say” Call me when you do”. Do not stop walking. Ignore the pleading unless you hear the magic words, “we’ll do it”. They won’t… it’s cultural, just know this going in.
Your price will only go one way when you leave a dealership and that is down every time. Time is your friend. When he or she calls, and they will call, the price will always be better.
How to buy a new car rule number five…try to buy your car on the last day of the month
For the last bit of making sure you are spending the least amount possible buy it on the last day of the month. Why? Because at midnight of the last day of the month the dealer pays interest on every car on the lot…it is called a floor plan. If the interest for your car is $200 that’s another $200 you can put in play.
As the month winds down the owner is pressuring the general manager who in turn pressures the sales manager , who in turn unloads on the sales force. Trust me you will get a call to see if they can cut a deal before the clock strikes 12.
How to buy a new car rule number six…remember the service department is separate from sales
A common ploy is if you buy the car here you will get a loaner car when you come in for service or you will get better or faster service if you buy it here. Not true, the service department is a separate entity and has to make money just like the sale force.
Imagine the service manager telling you no loaner car for your 30,000 mile service. That is a money maker for him and he will not let you go elsewhere for your service over a loaner car. Don’t fall for this sales trick how to buy a new car for the lowest price.
How to buy a new car can be unpleasant if you don’t understand the rules. Be smart save money, do it online and save thousands.