How to Get the Best Car Deal?
by Mr Credit CardI am thinking of getting a car sometime later this year and I guess it is research time as I am not exactly a car fanatic. Fortunately, I just met a new friend who used to be a car dealer and boy did he give me a few tips for car shopping. This was what he told me.
1. Do your basic research on the model you want
Well, sounds very basic, but it is a necessary step. Do research on the internet. Find out how much the model is, what features you are looking for, their second hand value etc. There are also many forums arounds so he adviced me to check them out as well.
2. Obtain a Pre-approved Loan before you approach the dealer
Sounds elementary again, but my friend insisted that I should have a pre-approved auto loan in hand to bargain with the dealers. That should be easy enough.
3. Never Shop the Dealers over the Phone
While I thought this was a very tempting proposition, my friend told me never to do that. The reason is that dealers know it that you are just stringing them along that they never give their best prices. To get dealers to take you seriously, you have to visit their showroom and show interest in the car that you may want to buy.
4. Buy a car close to Month End
Every car salesperson has a monthly budget or quota to meet. Checking them out during the third week of the month and trying to close a deal by the last week is a great tactic according to my friend. I will definitely keep this in mind. Timing is the key.
5. Never Agree a Deal in the Showroom
The last advice my friend gave was never to agree a deal in the showroom. Always say that you have to talk to your partner about this, then leave. Wait for the salesperson to call you again (which will probably about a day later). When the call comes, try to negotiate for one last price reduction. Close the deal over the phone and then go to dealer for the paperwork and your car keys.
I appreciated his advice about the negotiation tactics. I will sure use them. I was thinking about getting the Citi® Driver’s Edge® Platinum Select® Card plus an Auto Rewards Credit Card for the specific brand that I want to help me save even more money. However, given that I would like to buy my car in the next few months, I probably do not have enough time to spend enough money on these cards to get me a significant rebate. Using these auto credit cards probably require a couple of years of planning to get the best bang for the buck.
I will update you on my car purchase when it happens.
February 19th, 2007 at 19:47
go to other dealerships to include a competitor car brand.
when you do close the deal, go over there immediately. especially if it is on friday. car dealers really like to let other people drive the car you want to buy and may lend it out for the entire weekend.
never get emotional about the car.
be flexible in what you want. an eager beaver will spend more in the dealership.
if you have a costco’s and are a costco member, check out what the dearlship’s costco price is if they have a buyer’s program. if your bank has a buyer’s program, check what the price is from it. you can normally negotiate a better deal, but it is good to know what buyer program’s costs are.
buying towards the end of model year is also a good idea for timing. to that extent, buying last year’s model this year since it is still the same year model–that is, summer to fall is new model season, so when the 2008 cars come out, buy a 2007 car since we are still in 2007.
take a look at “program” cars, which the dealership will probably try to sell if they have 2008 cars in the lot and want to get rid of 2006 program cars. I normally figure around 15%-20% below dealer cost on program cars. the problem with program cars is that they are like rental cars. no one using them cares about them.
February 20th, 2007 at 13:56
[...] With the passing of Presidents’ Weekend, some of the best car deals could be unavailable. Or maybe there are even better deals of the left overs. Better yet, it’s getting towards the end of the month. Ask Mr. Credit Card has some great advice on how to save when buying a car. [...]
February 20th, 2007 at 17:55
[...] Ask Mr. Creditcard gives advice on How to get the best car deal. [...]
February 21st, 2007 at 01:26
As for buying last year’s model, make sure you’re getting a good deal because depreciation hits instantly even harder than if you bought it when it first came out. You’ll be hit even harder if the model has been redesigned for the new year.