So you decided that there is need for a new car. Great!!! Who does not want that new car smell?
In this article I will tell you how you can save thousand off dealer asking price.
First of all, do you really need a Brand new car? If you answered yes than this article will help you save, if you said no, then I can save even more and you should read my article on how to save money when buying a used car..When buying a Brand New Car, be careful not to spent on bells and whistles as there are alternatives way to get them and for much lower price.
The biggest thing person will over pay on is GPS. From a dealer a GPS system is from $1500-$7000 extra. come on its 2014, GPS is standard in most cars, so negotiate the price to incude GPS but keep in mind that ever smartphone has GPS and Garmin or TomTom GPS work just fine and are cheap.
Look in to a aftermarket solutions, they may not have exactly what the OEM has to offer but they have allot of other nice functions that you can take advantage of and for price of no more than $1000, that is allot of money that can be saved.
Next there are extra warranties.
Manufacturers Extended warranty, if it is prices from $1500-$3000 for the extra 3 years. Sure buy it, repairs are expansive on the newer models but don’t go creasy as the most common parts that you need to spend money are not covered by the warranty. Watch out for other stuff like Road Hazards Insurance and Interior & exterior, Road hazard insurance can be nice, but it all depends on the price, I personally paid $545 for 5 years, which I already used 3 times so it does pay for self back, mostly on fixing bend whiles and once on a flat tire. Don’t expect them to replace your tires; they have specific rules on how much wear needs to be on those tires. Interior & Exterior insurance is another one, Remember they fix not replace, so be careful it’s probably waste of money.
LoJack is one thing where you would waste money, it cost a lot to get it installed and you save very little on your insurance. Long run it is not worth it, save yourself the money.
Interior ans Exterior Protection: This is usually a third party protection. Dealers try to sell it and event miss lead you what it covers just to make you buy it. IN my case I was told that it protect my leather seats from wear and tears but when i gat a small tear in my seat they dint want to fix it, because it is not covered. dont get it, its just wast of money.
Ask about engine oil and other services, if they need to be done at a dealer or they can be performed by a local mechanic; ask them if it would void the warranty. Also ask about oil type for your car. Most new cars accept synthetic oil which is good for 10,000-15,000 miles, dealers will still try to get you to change it every 5,000 but you can fight about that.
Ask about the new car perks when it comes to servicing like free car loaner, free car wash, free oil changes, free tire rotations.
Lastly negotiate the interest rate if it is not 0%. Most dealerships have there own Loan companies which allows them to give you exceptional rate. Toyota is one example, they have there own financial section. If Toyota is offering you 4.5% for 5 years, you can negotiate to at least 3.5% or lower even when your credit score is not perfect, if they don’t, walk away. If you got that far of the process of buying a car they will not let you go, if they do, next day they will most likely call you again and say that they found a lower interest rate for you or if not, they will offer to drop the price on the car to set the difference.
Most dealers can lower the price by at least $3000, most of the time $5000 of their price. Also look online to compare prices, most of the time someone out there will have it slightly lower, so what that it might be far away from you, to the dealer its competition.
Let’s say you want to buy a car, its priced at $32,000 if you go to the dealer and say I will pay you $27,000 right now, they will say they can’t do that. When you go to them and waste their time and start asking them about lowering the price, they will most likely lower it by $500-$1000. But that is just scratching the surface, negotiate more waist lots of their time, and they will lower it by at least $3000 and give you additional perks worth additional $2000.
This will probably waist your entire day, but on the other hand you are most likely not making over a $1,000 dollars a day.
Shop around. There are a lot of commercials stating that they compete with other dealers to make sure they have the lowest price. The truth is that dealers use the web tool to manipulate the the car price and to make sure all of them keep higher prices just so when the drop the price by $1000 you feel like you getting a bargain.
Going to bunch of dealerships and leaving your info is good idea. This shows them that you are serious buyer but the price is the key to win you over.