When the decision is made to buy a dealer car it is important to come prepared. Some people are weary of buying from dealers because they worry about obtaining the lowest price. The best way to be assured of getting the lowest price is simply by researching what similar vehicles sell for and being willing to negotiate.
Dealers make the bulk of their money on used cars and service departments. There is very little profit made on new cars and the longer a car sits on the lot, the less money they make. Dealers finance the new cars they buy and must pay interest on the loans. Therefore, the longer a car has been sitting on the lot, the better the chances are they will sell it for the lowest possible price. However, it is also important to keep in mind that in order for a dealer to stay in business they must make money. So negotiating a fair price for both the dealer and buyer is ideal. Dealers tend to stock only the most popular trims and colors of a model meaning that it might be possible to negotiate a better price on a different trim or a less popular color. Dealers will often time sell cars with dealer installed options such as rust proofing and paint sealer. The costs of these options can many times be deducted from the sale price.
Buying from Dealers
Negotiating the price of a car at auto dealers can sometimes be tricky. Some dealer franchises offer a no hassle price and will not negotiate further. However, with most, it is possible to negotiate and save hundreds, maybe even thousands, off the sticker price. Before negotiating a price, it is essential to have plenty of research to back up the offer. Whether it is quotes from other local dealers or online quotes, having the information available will help ensure making a fair offer. If the sales person seems unwilling to negotiate the price down, do not hesitate to walk away and look elsewhere. A new car sales person is in the business of selling cars at the highest possible price; and, because they generally work on commission, want to sell it as close to sticker as possible.
One of the fastest and easiest ways to determine the price of a new car is online research. Numerous websites, including Kelley Blue Book, enable people to estimate the cost of a new vehicle based on make, model, trim, and even region. Taking this information to the dealer can be a helpful negotiating tool. In addition, if a trade in is involved, it is a good idea to research the trade in value prior to visiting the dealer. Some experts suggest waiting to discuss the trade in until after negotiating the price of the new car.
Buying a dealer car cheap is not as difficult as it may first seem. Arriving prepared with research and a clear idea of what a particular model cost is one of the best ways to negotiate a fair price and save money on a new car purchase.