Planning to Buy Your Dream Vehicle? Here Are Some Tips


When you purchase a house or a vehicle these are some of the biggest investments you may encounter, so make sure you have some skills and information with regard to negotiating a good deal for yourself. When purchasing a vehicle there are several pieces of information that you should be armed with when you make your purchase. I will discuss briefly the purchase of used vehicles in my next article. Please be aware that the salesperson has specific information relevant to the price and is not willing to tell you everything concerning your purchase. So be ready for them. Here are some tips when purchasing new vehicles that you should keep in mind.

1. Take time in making a purchase; pursue your search when salespeople are not on the lot. Try looking for a vehicle on a Sunday afternoon, late Saturday afternoon, or even early Sunday morning. This will give you time to analyze prices, rebates, and the type of vehicle you would like to purchase without any interruption. You have a clear thinking process at this time.

2. Know how much you are going to spend each month out of your budget for your new vehicle. Will you be able to afford a car note of $550 month? This should already be calculated before talking to any salesperson. Stand firm on what you can afford and do not be conversed into a vehicle you do not want or can not afford.

3. Be aware of information about price reduction such as how long the vehicle has been setting on the lot; you can see this information by opening the door and looking inside the door panel. This will tell you when the vehicle arrived at the lot. The longer the vehicle sits the more they want to get rid of it. This could be a beneficial tool for your negotiation process.

4. Look at the rebates carefully; you should obtain the good rebates as well as the dealer. For example, A car’s original price is $30,000. The MSRP=the manufacturing suggested retail price which is $27,500-this may be what the dealer paid for the car. Then there is a dealer manufacturer rebate that the dealer also receives that they may not pass onto you. This price may be for example $1,500.00. Now the price of the vehicle is down to $26,000. The dealer also is provided a benefit for moving a car fast (aggressive sales) in a particular time frame. This could be $500 to $1000 for them. You may not see this benefit either. Now you can negotiate on the price of $25,000 or $25,500. There is also a dealer cost that should be factored in at $500 to $1000. The dealers do not want you to know about this as well. So, the called true dealer price maybe $24,500 to $25,000.

5. At this price, you may make an offer of $24,500 to $25,500 on a $30,000 vehicle and may pay $4500 to $5000 less on this vehicle if your credit is good, and it may be more. Remember they need to sell this car, and you are in control not them. Always remember they need you more, their incomes depend on it. So use every analytical tool you have.

6. Negotiate the price of the car, not the monthly payment; you will see the difference and this will work out for you long-term.

7. Get at least 3 or more quotes from other dealers on the particular model of choice. This will assist you in getting closer to your price.

8. Calculate your payment and look for hidden prices or interest hikes.

9. You do not need the extra, extra warranties for the paint job or other parts on your vehicle most of these are already covered. You can protect yourself with extended warranties but not all the mumbo jumbo the dealer is talking up.

10. In most cases, you do not have to put down a down payment even if your credit is marginal. The dealer still makes money on you depending on several variables encoded in the contract you sign so be careful. So keep your cash in your pocket if at all cost.

11. Try to purchase your vehicle during the closing of the fiscal year, generally around October, the dealers are trying to get rid of old stock to purchase new stock, and you could benefit from this.

Leave a Reply

Your email address will not be published. Required fields are marked *