Most people dread the experience of going to a car dealership. The main issue is that each party is on opposite sides, such that the buyer wants a car for a low price, yet the car dealership wants to sell a car at a higher price. If you want to get the best car price, you should keep these “magic” statements in your back pocket at the dealership:
1. I know the blue book value of the car I want to buy
Before going to a car dealership, you must conduct some research. You must understand the actual market value of the car you’re interested in purchasing. When you know the blue book value of a car, you’ll have an easy time bargaining. For example, if you are going to a Dodge dealership look up the bluebook value of the Dodge vehicles you are interested in or if you are interested in a specific vehicle such as a Jeep SUV then look up the bluebook value of that vehicle. Ensure the price you state lets the car dealership know that you want a good deal and are willing to purchase the vehicle. The main focus is on getting a car for a fair price.
2. I’ve already been pre-approved for a car loan
Before going to a car dealership, you must ensure your finances are in order. You can seek financing from a credit union or bank. Ensure you’ve carried out enough research to determine which financial institutions offer the best rates. As you visit the car dealership, ensure you have written approval stating the amount you can borrow. You should also present the terms of the pre-approved loan. The main advantage of pre-approved loans is that they allow you to keep your options open, and they often have better interest rates compared to loans the car dealership would offer.
3. I’m not interested in the extended warranty
After purchasing a car, the salesman will direct you to the financing department, where you’ll encounter some pressure. For starters, you’ll be offered an extended warranty, and you’ll be shown different forms of tinting, undercoats like rust proofing, among other additions. Don’t bow down to the pressure regardless of what the car dealership offers since you can get all these additions elsewhere for a better price.
4. What incentives are available?
Each dealership offers different incentives. If you pay close attention to the fine print on such deals in the local papers, you’ll notice that you only get a deal when you give up customer incentives. If you’ve already procured your own financing, you won’t need the incentives offered by a car dealership. So, you need to inquire about the list of incentives and how you can qualify for each. Some of these incentives include cash-back offers, free upgrades, and military discounts.
5. I’ll come back another day
When you use this phrase at the car dealership whether, during intense negotiations or a test drive, the salesman will become defensive. After a person walks into a car dealership, they’re a potential client resulting in commissions after hitting the sales targets. When you walk away, you will likely not come back, and the commission goes away. Thus, using this statement puts you in a position of power during the negotiation. You should be prepared to visit various car dealerships before getting a deal that suits you. Sometimes, the car dealerships may even call you back after a day with a better offer.