New Car Prices
Wednesday, June 17th, 2009So you’ve decided to buy a new car. This is an exciting time but new car price negotiations can be scary if you’re not prepared. The good news is with some planning on your part you will be able to get the best deal on that new car.
The only time you should go to the car dealer without planning ahead is when you first start to look for a car. Be sure to let the salesperson know up front that you are “just looking.” Walk around the lot, check out the cars, take notes and start to get a feel for the best car for you.
After you have visited several car dealers to “window shop” it is time to do your research. By this time you should be pretty clear on the car you want to buy. Now do some research online for what the dealer most likely paid for the car. Remember the invoice price is not the price that the dealer paid. A good price for you should be somewhere between what the dealer paid for the car and the MSRP (manufacturer’s suggested retail price).
This is the time to also decide how you want to finance your new car purchase. Most dealers do offer financing, but it would be best to research outside financing before negotiating with the dealer. Check out rates and terms with your bank or credit union. Get a quote before going to the dealer. I know it seems easier to get the financing from the dealer but this could end up costing you more money in the end.
It is a good idea to check out the value of your trade-in, if you do plan to involve your current car in the negotiations. But, remember to not discuss your trade-in with the dealer before arriving at a final price for your new car.
Your fact-finding trip to the car dealers should have given you a good idea of which dealer you want to do business with. Go down to the car lot with confidence and always remember that if you feel the negations are not going well (trust your gut) you can always walk away. But always leave on good terms as this may have been the best offer you get and you may want or need to go back.