When you are negotiating a new car price, you need to remember the most important aspect of the process is determining exactly what you are actually going to end up paying for the car. When you start to think about how to negotiate a new car price, don’t get intimidated: it is just business for both you and the dealer. Learning how to negotiate a new car price doesn’t have to be stressful for either the buyer or the seller. New car negotiation can often mean that you will have to make some split-minute decisions. Don’t let yourself be distracted by low monthly payments offered because you could still wind up paying through the nose via interest rates or an overly long finance term. Negotiating a new car price can require different tactics than leasing.
When you are planning on buying a car and keeping it for a long period of time, it is usually wise to finance your car anywhere up to five years. One good new car negotiating tip is making sure that you don’t take agree to a loan that is longer than five months. Any time period longer than that will wind up costing you way more than your vehicle is worth in interest payments and can easily put you upside down on your loan. Here are a few new car negotiating tips to remember when you are on the dealer lot. Despite what your Uncle Lou may tell you, there is more to negotiating the price of a new car than making an offer and then shaking the salesman’s hand. It’s not 1955 anymore.
New Car Negotiating Tips
- Some car dealers still charge “dealer prep” fees or even add “dealer mark-ups” on models they feel are highly desirable. While they can legally add these fees, you don’t have to pay them nor should you as they are purely designed to create profit at your expense. If one dealer refuses to negotiate always remember there are others nearby that also sell cars without unreasonable fees and will be eager about negotiating new car prices with a buyer. Don’t let unwanted fees even enter your new car negotiation or consideration.
- Do remember that a car dealer is a business, however, and to needs to make money. Don’t get paranoid that they your salesperson or dealership is trying to trick you or rip you off during new car negotiations as most state laws and franchise agreements work to protect your rights as the buyer and not the other way around. Negotiating new car prices is part of the process buy the consumer is protected from unfair tactics in most cases.
- If haggling with dealers stresses you out, by all means go to a dealer that advertises a “no haggle” policy, but you might be paying through the nose for the privilege. But to many the increased emphasis on customer comfort is well worth the extra cost inherent in the purchase price and new car negotiations are not even part of the buying experience. Although Saturn introduced the concept, Toyota’s Scion division still sticks to a “one-price” policy, which works for them as their cars are very affordable and eliminate the need for negotiating a new car price.
- Whenever you are signing a long-term finance contract when negotiating a new car price, be sure that you are rested, have eaten recently and are feeling clear headed. Once you put your name on the dotted line that contract is your full responsibility and you must always remember that.