If you’re in the market for a new car, you cannot afford to pass by these tips. Every new car I’ve bought I have successfully negotiated well bellow the RRP sometimes saving many, many thousands of dollars. If you follow the steps I’ll outline, you should have no problem getting a superb discount on your next new car.
1. Find the car you like and make sure you want it.
2. Do online research for the RRP of the car you want to buy. Visit car websites and find out what demo models sell for. The goal here is to find out approxmiately, the lowest price anyone will sell the car for.
3. Test drive the car. Make sure you like it. Do not buy the car there and then. I repeat, do NOT buy the car there and then. The dealer may ask you to come into their office to talk about signing you up. Advise that you are still looking around and are not yet ready to buy.
4. Find every car dealer in the state that sells that brand of car.
5. Hit the phones and call around. Tell the dealer on the phone that you’re serious about buying the car you have in mind, and want to secure a good price. Most dealers will say that they cannot do a deal over the phone and will ask that you come down. This is NOT true. I have successfully done this many times before. Say something like, you cannot drive all over town, especially if the price is not going to be good. If the dealer won’t comply, ask to speak to the new car sales manager. At this point, the dealer will probably ask you what you’re looking at paying for the car or if you’re trading another car. Say you are not trading in a car.
6. Name a figure that is well below the RRP for the car. Is the car retails for $30,000 and you say you want to pay $29,000, that’s probably an easy sale as every car has a margin the dealer can work with. However, if you say you want to pay only $22,000, the dealer will problably say that price is far too low, or below their cost and they will be losing on the car.
7. Now ask what price they will do it for. This is where the real negoitation takes place. Once you haggle on a price that you think it fair, see if they will throw in any dealer accessories like paint protection, leather protection, reverse sensors, tinting etc. These accessories are generally inexpensive to the dealer but have a high perceived value.
8. Tell the dealer you need to think it over, to make sure you are getting a good deal. Now, call around the other dealers and see who will beat the price. That’s it.
Whilst negotiating the price of a new car over the phone may seem extraordinary, it really works. You don’t have all the time in the world to drive from dealer to dealer to haggle over price. And, a phone call is much cheaper that putting petrol in your car. However, you really have to be willing to buy the car, otherwise, there is no leverage on your side. If you’re kicking tyres and not really sure about the car, you have no leverage. But, if you tell the dealer you are a serious buyer and are prepared to do a deal right now, you are better placed to get a fantastic price. Obviously, if you are trading in a car, you need to be mindful that the dealer will need to see your car to assess it’s value. But, do this after you have negotiated a rock solid price on your new car.
Good luck new car buying.