When making a new car purchase, price is a major consideration. For many, the thought of talking price with a car salesman is a daunting experience. Even after agreeing on a price – many new car owners ask themselves “Did I pay too much?”
Sadly, people who don’t know much about cars can be the victim of sales tactics and marketing schemes that are meant to inflate the selling price of a vehicle.
So for all new [and used] car buyers out there, here are three ways you can make sure you’re not overpaying.
Negotiate like a pro.
There are lots of negotiating tactics out there for getting the best price on a car. The best tactic, by far, is to commit to a price you’re willing to pay and be willing to walk away if you don’t get it.
The best way to go about it is to find the make and model vehicle you want, then find several sources who have it in stock.
If possible, buy in cash or have a healthy deposit. Bring the money to the dealership, say what you’re willing to pay, and just walk away if they won’t give it to you. Don’t bluff. Cash is king, and the next place you go is likely to take your offer, especially if you explain that you’ll just go to the competition.
Shop around – the easy way.
If you do not like negotiating face to face, try this.
Each car dealer [even of the same manufacturer] will offer a different price. Once you have decided on the exact car you want to purchase, then it’s time to compare.
Of course, visiting each dealer of the brand of car you want is impossible. Instead, simply draft an email detailing the exact make and model of vehicle you want, and include the accessories, paint colour etc. Also let them know if you need finance or are paying cash.
Then send this simple email to each dealer [of the car make you want to purchase] in your city / nearby to you. In your email, tell them you are ready to purchase this vehicle [insert as much detail as possible] and that you are sending this email to every [insert name of manufacturer] in Melbourne – as this will force them to offer their very best price on vehicle and finance [if required].
Be firm, do not provide your phone number and advise them you do not need to speak with them. All they need to do is to provide you with their best price.
Let them know the dealer who provides the best price by [insert a cut-off date – give them 2-3 days] will make the sale.
Doing this towards the END of the calendar month will also help motivate them to provide their best price – as they have monthly sales targets to meet.
We did this and saved well over 15% on the best price we could negotiate face to face. Having the price in writing saves you negotiating or the dealer trying to change their price when you go in to purchase.
Look beyond new.
Don’t be the person who purchases a new car that you can’t afford. Cars lose value quickly – very quickly. There are plenty of used cars which are just as reliable as the new thing. Buy used and save.