One of the best tips on how to get the best deal on a new car is to have your car finance preapproved. This means that when you walk into the showroom you are only there to negotiate a price you know you can afford.
That's the peace of mind you get from having a preapproved car loan.
But there are plenty of other things you can do to make sure you do not pay more than you have to, like choosing the best time to buy the car, and the best ways of negotiating for extras and accessories.
Let's take a look at some of the 'tricks of the trade' to get you started.
- When you are approached by a salesman in a car dealership it is tempting to say you are 'just looking', but any salesman worth his salt will know that you are not! No one goes into a dealership to 'just look'; you only go there when you want to buy. So the first trick is to do your homework before you go to a dealership and never say you are just looking.
- Do your research on the Internet before you go to a car dealer so that you will not be bamboozled by the array of options and accessories. Work out exactly what you want to pay and how much you can afford and make sure your car finance preapproval incorporates all of these. This is the way you can ask for an exact price for the vehicle you are looking to purchase, without the need to negotiate any other aspects of the deal.
- It's a salesman is not prepared to give your price and wants to start playing games about trade-ins and delivery dates etc, be prepared to walk away and try somewhere else. There is nothing that will focus salesman attention more than a purchaser who was willing to walk out the door.
- Maintain a strong will, and do not accept any deal on the spot even if it sounds like a great deal. A salesman who tells you that this offer is only valid for the next hour is most probably lying. Whatever price you are quoted, rest assured it will still be available tomorrow! The important thing to remember is that you want to get a few quotes together so you can compare deals between dealerships.
- Sometimes, it can pay to get a quote that includes dealer obtained finance. Once you have been given this price, you will have room move because the dealer will have included a commission. If you have a preapproved loan you can then use this figure to negotiate a cash price.
- All car dealerships are sensitive to purchases made at the end of the month, and especially at the end of the financial year. If it's possible, make sure you negotiate your deal towards the end of the month.
These simple tips will get you started on the path to a cheap price and provided you have your car loan package preapproved you should be able to strike the best deal possible.