If you’re buying new car, there are tons of terms, numbers, and repeated assurances by the “manager in the back” of a great deal, leading to plenty of confusion.
Secure the best deal by answering these three questions before any new car purchase.
1. Have I performed enough at-home research on my car?
With tons of options on invoice price paid through TrueCar.com, car reviews, and eligibility for online incentives and national advertisements, you can get a sense of what others are paying in-region before visiting the dealership.
Not all cars sell at full MSRP price, and their actual purchase price is negotiable.
Also, tons of financing deals (e.g., 0.9%) are available, usually towards summer-end. That’s when old inventory is being cleared out for new inventory. Memorial Day and Fourth of July weekend are also peak purchasing times.
2. Do I know the purchase price of the car?
By negotiating your price based on a monthly payment as opposed to purchasing price, you are setting yourself up for failure. Dealerships are known for taking your desired monthly payment and maneuvering the numbers on the purchase price, interest rates, and trade in values making you end up thousands more in the actual full price.
Additionally, visit your bank and see what length of loan and interest rate you qualify for before referring to the dealer’s bank. Dealers are known or bumping your interest rate despite a top-tier credit score.
A poorly negotiated purchase may result in several months added to the length of the loan, which is a profit machine for the dealership.
3. Am I ready to take my time with my purchase?
With new car buying, purchase contracts and dealers are known for punching add-ons to increase profit. Avoid all extras like credit life insurance, gap insurance, rim protection, and other incidentals.
Lastly, are you prepared to visit different dealers? Price quotes and model availability vary wildly among the various local dealers. Do not forget to use services like Truecar.com to contact multiple dealers at the same time. Just be ready to receive a barrage of phone calls from salespeople.
By answering these three questions, you are well on your way to securing the best deal on your new car purchase.