Negotiate one thing at a time: Vehicle price, trade in, financing negotiations & what you can afford in monthly payments.
Starting Price? Forget Sticker, what did the dealer pay? CONSUMER REPORTS.ORG provides lists of Dealer prices without incentives, holdbacks or rebates. Reasonable starting price is typically 4%-8% over bottom line price depending on demand for the make and model.
Make it clear to the salesperson that you want the lowest possible markup over starting price and you'll visit other dealerships selling the same vehicle and will buy from the one with the best price! Once settled on the price, then discuss financing and trade in.
0 DOWN, 0 INTEREST, 0 PAYMENTS FOR 1 YEAR:
Did you know that after the first year you will still owe all those monthly payments you've delayed, often at a higher interest rate. You also end up owing more for a used car now!
NO DOWN: Finance more money, monthly payments are higher, increases the amount of interest over the life of the loan. Many buyers don't even qualify for 0% loans and low interest rates. Know the current interest rates and shop around!
LEASING GAME: Leasing rates are negotiable! Keep it simple, negotiate vehicle price, then mention you would like to lease!
Other negotiated items include: Down payment, Annual mileage limit, purchase option price. Have Dealers compete against each other and give your business to the one who offers you the best deal.
FINANCING & CREDIT SCORE:
DON'T MAKE FINANCING A PURCHASE-TIME DISCUSSION! Before shopping make sure you know how you will pay for the vehicle ahead and check the dealers rate and compare it with banks, credit unions and other lending institutions. If pre-approved, keep financial arrangements OUT of negotiations.
REMEMBER YOUR CREDIT SCORE WILL HAVE AN EFFECT ON YOUR INTEREST RATE, KNOW YOUR SCORE IN ADVANCE SO YOU HAVE TIME TO CORRECT ANY ERRORS.
EQUIFAX www.equifax.com 800-685-1111
EXPERIAN www.experian.com 888-397-3742
TRANSUNION www.transunion.com 800-888-4213
LOADING OF OPTIONS:
DO HOMEWORK ON OPTIONS YOU WANT, many times due to low sales price, salespeople try to sell more options to make up cost. Many options are available separately, others bought in a package. Option packages many times offer items you don't want or need. Consider packages carefully!
REMEMBER you can negotiate the price of options especially if purchased vehicle at TRIM LEVEL!
EXTRAS YOU DON'T NEED:
Dealer profit sources come from items such as rustproofing, fabric protection, paint sealant, etching VIN# on windows as a theft protection/determent. These types of changes many times show up on your final bill, yet never discussed.
Don't waste your money! What costs the dealer about $90.00 costs
Vehicle bodies are already treated against rust! VIN etching you can do yourself with $25.00 kit! Upholstery is typically treated at the factory! Paint sealants & waxes available locally for about $15.00!
Dealer PREP FEES: Checking tire pressure should be included in the purchase price, not listed as extras. If these items are listed on your bill of sale, refuse to pay them!
Consumer Reports does not recommend buying an extended warranty unless you plan on keeping a "trouble prone vehicle" for an extended time after the original warranty runs out!
Most manufacturers warranties are sufficient with bumper to bumper coverage of at least 3 years or 36,000 miles & powertrain coverage thats often longer. Auto manufacturers warranties are typically better than those offered by third- party companies.
BANKS DO NOT REQUIRE YOU TO BUY EXTENDED WARRANTIES! IF A DEALERSHIP TELLS YOU THAT A BANK DOES REQUIRES YOU TO PURCHASE ONE, THE DEALERSHIP IS DISREPUTABLE. MAKING YOU PAY FOR ONE UNDER THESE PRETENSES IS ILLEGAL IN SOME STATES!
For more information: CONSUMER REPORTS New Car Price Report, learn to beat dealer secret charges, cash in on rebates, get pricing options, safety ratings, negotiating tips and much more!
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