The 2 Things Every New Car Shopper Must Do Before Buying
If you're paying cash and don't have a trade-in, then you're fine to focus only on the price of the car and you don't need to read any further.
But if you're like the majority of car shoppers, you will most likely have a current car that you need to trade or sell, and you will need to finance your new purchase.
The two biggest profit centers for most dealers are used cars and financing. This is exactly where most shoppers fail to do enough research.
Shop Your Trade-In
Before you negotiate the price of your new car, it is vital that you first shop your trade-in to other dealers in order to get a good idea of what it's worth.
Without knowing how much your trade-in is worth, how are you supposed to negotiate its price? Dealers know most shoppers don't take the time to figure out exactly what their car is worth - so they will low-ball you several hundred or even thousands of dollars - and you'll have no idea.
Shop for Car Financing
The vast majority of car buyers get their financing through a dealer. This is one of the biggest mistakes car buyers make. Why? Because if you don't shop for car financing before going to a dealer, they can AND will take advantage of the fact that you don't know what rates you qualify for.
Take the time to compare your financing options and figure out what rates you qualify for - then when it comes time to see what the dealer can offer, you can compare your best rates with whatever the dealer can provide. Sometimes they will be able to beat your lowest offer - but the only way they will do that is if you already have it lined up.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid