Nobody wants to spend more than they need to on a new car. Sadly, the process of purchasing a new vehicle can frequently be intimidating. Negotiating with salespeople and finance departments can wear many new car buyers down, resulting in poor financial decisions. Avoiding this situation does not have to be hard, however. There's no simple trick for getting a good deal on your next purchase, but a little knowledge can give you the confidence that you need to work with the dealership to get a great price. These steps will help you to maximize your savings on your dream car.
Don't Make Impulsive Decisions
Many people stop by their local dealership without knowing what they want. This approach is fine as a way to take some test drives and help narrow your choices, but you should have a clear idea of what you want in mind once you are ready to purchase. Avoid window shopping with intent to buy whenever possible, and commit to taking at least one day to think over your options before purchasing. If you take nothing else away from this article, this simple tip can potentially save you thousands of dollars.
Arrange Outside Financing
Dealers may offer rebates and other incentives for using their financing, but being locked into a single payment option leaves you with little room to negotiate or budget. A better option is to approach a bank or credit union before arriving at the dealership in order to arrange outside financing. Applying for financing from another source will mean an additional hard inquiry onto your credit report, but you will arrive at the dealership essentially as a cash buyer. This position allows you to better negotiate with the finance department and ensures that you have a budget in mind before discussing loan terms.
Understand Incentive and Rebate Terms
Most new car dealers offer great incentives on purchases that can knock thousands off of the final purchase. Unfortunately, many buyers fail to read the fine print and are surprised when those incentives do not apply to their purchase. To avoid disappointment when you arrive at the dealership, carefully read the full terms of any incentives before you visit. If you cannot find this information online, don't hesitate to call the dealership up and ask for details. Knowing this information in advance can help you arrange outside financing and also help to narrow down choices that are within your budget.
Remember that the dealership wants to get you into a good car, but getting the best price is your responsibility. A bit of planning and knowledge can help to ensure that you aren't left overpaying when you look at cars for sale.