Feeling intimidated when it comes to negotiating for the best deal on your new car? You’re not alone –consumers consistently rate this as one of the worst parts of the entire car buying process. Here are 5 suggestions to help you get the best price for your new vehicle while lowering your stress levels about the whole thing.
1. Get your financing pre-approved before you talk to a dealer
When it comes to a new car, you’ll want to know how much your bank will allow you to buy before you start shopping for cars. For one, this helps you narrow your focus, but it also gives you a bit of an advantage in the negotiating phase – a dealer who knows you have the money all sorted will be more amenable to work with you than if they need to wait for the approval. Also, if you don’t have approved financing, you might be pressured by the dealer to go with their banking partner in order to get the best price, a decision that may end up costing you a lot in the long run.
2. Know the sticker price, and know the model’s full line-up
The Internet is your friend when it comes to being prepared for your first encounter at the dealership. You want to know two main things you need to know to be more confident in your negotiations:
- “Sticker” price: this is the price that the manufacturer suggests the dealer sell the cars for. You obviously want to go as low as possible.
- Options and Models: this is knowing what your car comes with standard, and what optional upgrades are available. You’ll also want to know what the next step up is, or the next step down, as it might become useful in the negotiating process.
3. Remember that price is only one of the things you can negotiate
As just mentioned, most cars have features and functions that are not standard. Have some things in mind that could be useful extras for you. This could be safety features, like passenger airbags or antilock brakes, or just functional upgrades like a nicer sound system.
4. Compare apples with apples
The price of the car is not the only thing you’ll pay to drive off the lot. You have your Goods & Services Tax, registration fees and sometimes dealer fees. These can add up to several thousand dollars, so it’s important to make sure the dealer is giving you a price that is the final price.
5. Lastly, make an appointment
Setting an appointment sends a clear message that you aren’t a tyre-kicker. You can also let them know when you book that you’ve done your homework, have a clear idea on what you’re looking for and expect to finalise your discussions in this meeting. Arrive prepared and know what you will and will not accept. You’re now ready to negotiate! If you’re looking for car finance or need help buying a new car go to Platinum Direct novated lease calculator to get started.