Buying a new car is a big investment and knowing how the game is played can save you some serious cash. Here are some tips to help you get a handle on the games car dealers play and save money when buying a new car.
Buy at the Right Time
Knowing when to buy a new car can save you a ton of cash. Typically, car dealerships put new cars on sale twice a year: the last two weeks of December and from July to October. I focus my car buying efforts on these two times to save the most money.
Don’t Blindly Trust the Dealer
If something the dealer says doesn’t make sense, check it out. I once had a car dealer tell me that since my car had to be ordered from the factory, it would cost more. Had I not checked this out, I would have signed away $3000 more than I needed to. Another dealer trick I have encountered that can cost you money when buying a new car is allowing them to get your vehicle from another dealership. While this may get your new car to you more quickly, it can add costly transport fees to the final price.
Play Mind Games
Think of buying a new car like a game. The dealer is an expert at playing the game and as the customer you need to make the dealer think you are an expert too. You can easily accomplish this by playing a few mind games on the dealer. My favorite way to fake out a car dealer is by taking advantage of the competition. Shop around and make sure dealers know that you are looking at other dealerships. Knowing what other dealers are charging means that you can deal on your terms, not the dealer’s. I like to keep my prices in a small notebook, which I then make sure the dealer sees me take out and check while I’m looking around. I also make sure they see me note their prices in my book for later reference. If the dealer asks questions about what I’m doing, I’m always open and honest with them. If a dealer knows you have done your homework, they will be less likely to try and pump up the price of the vehicle.
Take Full Advantage of Your Trade-In
One place people can save money when buying a new car is on their trade-in vehicle. Most people head into the dealership blindly where their trade-in is concerned. Don’t lose money on your trade-in; know the fair market value before you begin visitng dealerships. I always check the Kelly Blue Book value of my trade-in and then negotiate for the best price closest to that number. Dealers can pocket a ton of money by undercutting you on your trade-in, then reselling it at the Kelly Blue Book value. Visit several dealerships and solicit bids for your trade-in. Make sure they take the loss, not you.
Don’t Get Suckered by the Contract
Not reading the new car purchase agreement before signing it can cost you a bundle. Make sure you keep a sharp eye out for unnecessary and pricey dealer add-ons that can easily be sneaked into a contract like extended service contracts you may not need, fabric protection and over-the-top alarm systems. Check the figures and make sure the final price includes all fees and charges. Remember, the deal is never final until you sign the contract. Take your time and don’t be afraid to ask questions or balk at anything that is not to your liking.