How to Negotiate a New Car Purchase
- 1). Find out the dealer's cost. Internet sites such as Edmunds.com allow you to obtain a free price quote by entering information such as year, make, model and any additional package options you might choose.
- 2). Obtain quotes from competing dealerships. The easiest way to accomplish this is either over the telephone or through the Internet. The Internet offers websites such as CarsDirect.com that will request quotes from multiple dealers.
- 3). Decide whether or not you are going to trade in your current vehicle. If you do decide to trade in your vehicle, research sites such as Edmunds.com and kbb.com to obtain the best estimate of local trade-in values.
- 4). Know what incentives are available. Often there are advertised rebates, affiliate rebates and dealer incentives. Advertised rebates are those you see on television such as $1,500 cash back or 0% financing. Affiliate rebates are usually offered to groups or clubs. For example, if you are a member of Kentucky Farm Bureau you are eligible for $500 off most new GM vehicles. Finally dealer incentives are factory-to-dealer incentives that are offered when a certain vehicle is sold or when a sales quota is met. Though the dealer is not obligated to pass these savings on to the consumer, knowing they are available may help you in the negotiating process.
- 5). Choose your financing options carefully. The dealer usually works with a multitude of lenders who can approve just about anyone. Just because you are approved though doesn't mean you are receiving the best interest rate. Shop your loan with area banks and credit unions to ensure you receive the best rate.
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