Know what you want. If you’re not certain about the vehicle you want, spend time researching reviews on the internet and looking at cars that are within your budget. It’s important that you physically sit in the driver’s seat and take a short test drive to make sure the vehicle fits you. You’ll want to check out the comfort of the seats, outward visibility and the driving position. You’ll know when it does and doesn’t feel right to you. If you have any friends or family members with a car that interests you, ask them to let you look at it and drive it. Go to a dealership or two and tell the salesperson you’re just doing some initial looking and would like to test drive a vehicle to see if it meets your criteria. Do not sit down inside the dealership while shopping, and don’t spend more than thirty minutes with a specific vehicle. No matter how many questions the salesperson asks and what sales tactics he or she may employ, pleasantly respond that you are just doing some initial shopping and are not ready to discuss your credit score, monthly payment requirements, etc. Tell them you will discuss financial details when you’re ready to buy.

Secure your financing. Having determined what you want, you should know the approximate cost. On top of the price of the vehicle, you will be paying state sales tax, a state title and license fee and a dealer documentation fee, so take this into account. Consider joining a credit union for the lowest interest rates or use your bank and get approved for a car loan. This step will keep you from being at the mercy of the dealership when it comes time to finance the car.

Don’t tell them you’re paying cash. If you’ll be paying cash for your vehicle, congrats! Just don’t tell the dealership that, as they routinely make large profits in the finance office with marked up interest rates and various products lumped into the loan. If they know that this profit center will be limited or nonexistent, there’s a good chance your cash price will be higher than if you were financing.

Negotiate from home. You had to visit the dealership to see and drive the car, but you shouldn’t negotiate while in the dealership. Make your best car deal from the comfort of your home or office, where you’ll feel less pressured and where it will be easier to walk away. Phone calls, texts or emails should be your preferred communication methods. If the dealer says you must come in to negotiate, find another dealer.

Get out-the-door prices from multiple dealerships. For new cars, play dealerships against each other by getting prices for the same make and model from several of them.  The out-the-door (OTD) number is the total price you will pay for the car, including taxes, fees and any dealer add-ons. Focusing on the OTD price can help you arrive at the best deal whether you’re paying cash, financing or even leasing. Any line item in the OTD that is taxable is negotiable. In most cases, the car price can be negotiated well below the MSRP (manufacturer’s suggested retail price) on the window sticker, and you shouldn’t pay thousands of dollars for dealer add-ons such as window tinting, pinstripes, door edge guards, mats, paint protection, rust proofing, nitrogen-filled tires, etc. These add-ons are extremely low cost to the dealer, and you don’t have to pay for them.

Negotiate your trade-in separately. If you have a car to trade in, it can make the negotiations more difficult unless you treat it as a separate transaction. The trade-in value will eventually be reflected as a deduction in the OTD price. Before you present your trade-in to the dealer you’re negotiating with, shop it online at Carmax, Carvana, KBB Instant Cash Offer and others. Consider getting an offer from a local dealer or two as well. Your goal would be that the new car dealer meets or beats the best offer. In forty-eight states, your trade-in value will reduce the sales tax in your transaction.

Sound like a lot? It is, and there’s much more involved, but it can be done. If you’d like to save time and stress less, contact CarZippity for a free consultation!

How to Get a Good Deal on Your Next Car