Tips when Buying a Car
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- Negotiate or ‘haggle’ the price of the car with the dealer. When you negotiate, get as close to the manufacturers suggested retail price (MSRP) as possible. A dealer will sometimes negotiate to within $500.00 of the MSRP, especially if the manufacturer is giving them a special deal if they sell the car.
- Manufacturers will often offer dealers special incentives, sales contests and ‘holdbacks’ (based on a percentage of the dealerships total sales) to dealers for selling particular cars. Find the holdback percentage of the car you want at www.Edmunds.com and factor it into your negotiations.
- You may want to trade in an old car to save money on a new one. Check the Blue Book price for your car at www.kbb.com and compare the wholesale versus retail price of your car. If there is a difference of $1,000 – $2,000 between those two figures, you may want to try selling your car instead.
- Order your new car if you don’t see what you want on the dealer’s lot. This may cause a delay, but cars on the lot may have options you don’t want that will increase the price of the car. If you do decide to buy off the lot, negotiate. If a dealer is trying to get rid of inventory, you may be able to get a good deal.
- Make as large a down payment as possible. This will reduce the amount you will need to borrow and will enable you to acquire better financing terms.
Check with the National Highway Traffic & Safety Administration to find out about your potential car’s safety history, any Technical Service Bulletins on the brand and other pertinent information at http://www.nhtsa.dot.gov/