Buying a new car is a decision that’s rarely taken lightly. We often spend a lot of time thinking about the make and model, but do we really research the price ranges of our chosen vehicle? Knowing the right way to haggle over price could solve a lot of issues, and leave us with a fair price and a new car to be proud of.
Steve Huntingford, The Telegraph, reports:
“Haggling might not come naturally to us Brits, but it’s crucial with most new cars, or you’ll end up paying over the odds. Here are our 10 top tips for getting the best possible deal.
1. Do your homework
Before visiting a dealership you need to arm yourself with as much information as possible. Check if the model you’re interested in is due to be updated or replaced; if it is, you can use this to push for a bigger saving. And look at the manufacturer’s website to see if they’re knocking off any money in the form of “contributions”. This reduced price can then be your starting point for negotiations.
2. Time it right
Many sales targets are set on a monthly basis, so it’s best to visit a dealership near the end of the month. If it’s struggling to meet its target you’ll find it easier to secure a big saving.
3. Strike a good balance
You don’t want to come across as overeager, but at the same time you want to make sure the salesperson knows you’re not just browsing. Make it clear that you’re keen to buy, but only for the right price.
4. Play your cards close to your chest
Never tell the salesman your maximum budget because this will only weaken your negotiating position. Ideally you don’t want to spend the maximum you’ve got available.
5. Shop around
Visit several dealerships to see which is prepared to offer the best price on the car you want. And ask each dealership for a quote in writing. You can then take the best quote to the next dealership and ask them to beat it.
6. Think about the big picture
If you’re trading in a car as part of the deal it’s important to get value here as well. After all, there’s no point squeezing every last penny off the price of your new car if you’re going to give your old car away for a fraction of what it’s worth.
7. Remember money isn’t everything
If the salesperson won’t offer a saving that you’re happy with, ask them to throw in an extended warranty or equipment that would usually cost extra. Just make sure it’s equipment that you actually want, or it’s effectively worthless.
8. Factor in finance
Unless you have the money for your new car sitting in the bank, you’ll need to arrange finance. The dealer will be happy to help you with this, but also get some quotes from high-street loan companies, or you could end up paying more than you need to.
9. Don’t be afraid to walk away
If you’re not happy with what’s on offer, say thanks but no thanks. There will always be other deals.
10. Consider using a broker
Car brokers specialise in finding cars for their clients, handling the negotiations, then introducing their customer to the dealership. They can often secure bigger discounts than regular customers because they help dealers shift large numbers of cars. Just remember that you should never pay a broker for their services - they earn their money by charging the dealer one per cent on every car they help sell.”
So next time you’re thinking about buying a new car, or perhaps you know someone who is, don’t forget to do your research first. Getting the right car for the right price is something that shouldn’t be overlooked, no matter how sure you are that it’s the right car for you.