When it's time to buy a new vehicle, a lot of people choose to save money by making an offer on a used vehicle. It can sometimes be easier to negotiate with the auto dealer when buying used, and there are tools out there like online listings with the approximate value of various used vehicles that can help focus the negotiations. That said, it's not impossible to negotiate when buying a brand new car fresh from the factory. You just have to know a few tips and tricks you can use to your advantage.
Secure Financing in Advance So You Can Offer Cash
A large part of negotiating with a dealer often comes when discussing the monthly payment. But one way you may be able to save thousands of dollars would be to walk in with cash for the car already in your pocket and then submit a lowball offer. If the dealer knows they are getting everything up front, they may be more likely to cut a deal. Talk to your bank or credit union and see if you can get a loan for something like this. Some financial institutions will offer a loan specifically for buying a vehicle and the interest rate may be competitive with what you would get on the lot. Even if the interest is higher, you may still save money by getting the dealer to come down a lot on the price of the car.
Show Up on a Slow Day
If you want to be able to get the auto dealer to see it your way, don't show up on a busy weekend when there are a dozen other customers waiting around to give them money. Walk in during a weekday afternoon if you can, ideally when you are the only customer on the lot. If it's been a slower day, you may be able to get a salesman who is willing to be a bit more lenient on the price in order to guarantee that they get a sale.
Get the Dealer Invoice Price
Just like with used cars, it is possible to walk into a lot armed with some key numbers about the new car you want to buy. The dealer's invoice price is the amount that the dealer paid for the vehicle from the manufacturer. The difference between the invoice price and MSRP is how the dealer makes the profit. Sites like KBB.com can help you figure out the invoice price so you can go in with a good idea of how low you can go on your own offer for the vehicle.
Buying a new car should obviously be more expensive than buying a used version, but that doesn't mean you still can't save some money on the deal. Walk into the lot with cash from a third party loan, figure out the dealer invoice price in advance, and try to go business on a slower day for the auto dealer in order to give yourself a few advantages at the negotiating table. If you're looking for auto pricing, visit PureAutoPrice.com.