Doing business with a dealer will require you to be fully prepared. You need to be ready in playing the game. But how will you be able to beat them in a game where they set the rules? In the car industry, the dealers mostly win by netting the highest possible amount of money. Every point in the contract needs to be enthusiastically negotiated and carefully examined. While it may be true that getting the best deal is one of the determining factors of the game, the best thing to do is to turn them into a prey. It will help you maximise your money in the entire process.
Getting the Loan
In case you are borrowing the money that you are going to use to buy the car, your best option would be a car loan. Around 80% of the buyers are acquiring the car refinancing program of the dealers. This exposes their weakness to every aggressive salesman. Most dealers have managed to form a close relationship with the different financial institution in the area, and they will earn for every referral they made. When getting a car loan, you need to think about two essential steps; checking your credit report and shopping for the loan. Try to cut the dealer out of your car loan which can save you hundreds of dollars.
After preparing the finances, it is time for you to think about the price. Before you rush to a dealer’s car lot, you need to conduct a quick research about your prospected car. There are ways to determine the amount of money that the dealer paid to acquire a particular car. You need to remember that your price offering should be lower than the invoice price (unless it involves the law of supply and demand). If they are giving you a difficult time in paying invoice, you can always go to the next car lot that is selling a similar car. Just keep shopping.
When you are buying a new car, it doesn’t come with a warranty. The dealer may offer you an extended warranty but ignore his offerings. He will provide you with a paper that will be worthless should any bad thing happen with your car. In case it is a late-model, they may offer you a warranty that will cover repairs. You need to ensure first that the original warranty has already been used up. Remember that warranties such as this will only cover the parts that rarely break. In the end, it is still not a good deal.
These dealers are in the industry to create money; you need to be aware of that. But it is your job to make sure that they will be getting the least possible amount. By following these tips, you have a better chance to land on a great deal for your prospected car.