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- Buying a new car should be fun. But it’s also expensive, and the process can be stressful.
- If you don’t go in well-organized and with the right attitude, you might not get the best deal.
- You’ll be in a stronger negotiating position if you do your homework, arrange your financing, and know exactly what you want.
- Visit Business Insider’s homepage for more stories.
The best deal you negotiate on a new car is the one that makes you happy. Buying a new car is a stressful experience for most people, and although it gets less challenging with experience, the best way to enjoy the process is to be as prepared as possible.
Car dealers aren’t trying to rip you off, for the most part. They just want to sell you a car and make money doing it. Consumers, if they get stressed out over preparing to borrow or spend tens of the thousands of dollars, can end up undermining their negotiating position. Remember: the car dealer has the cars — but you have the money.
I’ve bought plenty of cars and dealt with numerous dealers. For me, the best deals have always come from a good negotiation. It doesn’t have to be exhausting, but you should plan on committing some time and effort.
It’s worth it if you consider that you’ll probably use your new car nearly every day. You don’t want to drive with regret. And you won’t if you follow these guidelines:
Get to know your car dealer.
REUTERS/Carlos Barria
There’s no substitute for relationships in the car business, which is still to a certain extent run on handshakes.
When I lived in Los Angeles, I bought several cars from the same salesman — and also referred him business from friends. Thanks to our relationship, I probably saved a few thousand bucks.
The ideal is if you’ve been buying your cars from the same dealership for decades. But even if that isn’t your history, you’ll likely get a better deal on your new cars the more times you buy a new car from the same folks.
There’s no guarantee, of course, and sometimes relationships can go bad. My father bought GM cars for years — Chevys, Oldsmobiles, Buicks — until those good old Detroit reliability issues and some unrelated business relationships sent him to Honda.
But good deals come from people you know, so it’s well worth it to invest some time in knowing your local car dealer.
Don’t forget that buying a car is all about salesmanship.
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Lots of people are intimidated by car dealerships and the whole car-buying experience. There are some alternatives to the traditional approach, such as Costco’s program of set prices and various online presales processes. But in almost all cases, you’re still going to have to visit a dealership, to deal with financing, insurance, and to take delivery of your car.
Don’t have any illusions here: you’re entering a sales relationship. The car dealer wants to sell you a car. The sooner you get comfortable with that, the better the process will go for you. Salespersons have different personalities. Some go easy, some come on strong, and some are in the middle.
But they all have the same end goal, and they want you to be happy with the car you buy. But they aren’t selling you just a car. They can also sell car loans, insurance, and service contracts, as well as aftermarket features.
My advice is to prepare for the sell-job and prepare yourself psychologically for the fact that you need the salesperson and the salesperson needs you. Yes, it’s stressful to spend $30-40,000 on something, even if you’re one of the few buyers who pays all cash. But if you come to the process with the understanding that you have much of the power in the relationship, you’ll be happier.
Don’t be afraid to walk away.
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Another personal anecdote: Years ago, I went car shopping. I knew what I wanted, and I had my budget in mind.
I found a vehicle at a dealership, dropped by, talked to the salesperson, discussed price — and said I had to think about it.
The price wasn’t a sticking point, but the dealer wanted to bit more than I was willing to pay.
So I went home. That night, the salesman emailed me, said he and his manager had talked about my offer, and had decided to meet my offer.
The lesson here is that if you want a good deal on a new car, you have to be willing to walk away. You won’t always hear back from the dealership, but you should much of the time. Car dealers believe that if a person comes in with the intention to buy a new car, then that person should not leave without a fresh set of wheels.
See the rest of the story at Business Insider
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- The incredible story of Ferrari’s 72-year journey from an upstart racing team to a $27 billion luxury brand
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- 9 of the most expensive cars to own
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Source: Business Insider – feedback@businessinsider.com (Matthew DeBord)