As everyone knows, there are pros and cons to buying a new vehicle. When it comes down to it, though, there’s nothing better than knowing you’re getting a car that no one else has put their—ahem—mark on. And who’s going to argue with the benefit of that new car smell? If you’ve decided that a new vehicle is best for where you’re at in life, there are things you should know to make the process go more smoothly. Read on for the ins and outs of purchasing a new car.
Know How to Negotiate
A pre-owned car is a less expensive way to go but, with the right negotiation techniques, you can walk away with the car of your dreams at a price that you had always been willing to pay. First and foremost, know the number you’re working with, and not just what monthly payments will work. Know the lump sum, as some dealerships will use the monthly amount against you by extending your loan and making you ultimately pay more.
As this SmartAsset.com article puts it, “Clever salespeople want you to focus only on low monthly payments because it gives them room to inflate other variables, such as the loan interest and length. This increases the dealer’s profit — while you spend thousands more on the car overall.”
Bring quotes from other dealers for leverage. Stay cool, calm, and collected, and never be rude no matter how heated it gets. Always be willing to walk away. In fact, you don’t want to show up to the dealer with a perfectly cleaned out car, as this is a sure sign to them that you are not going home in that car that day. You often need to be willing to walk away to get the deal you want.
Watch Out for Red Flags
If they avoid giving you an Internet deal because of fine print or they immediately start from scratch even though you’ve brought in an online quote, those are red flags. Also, be wary of any dealership that has you meet everyone under the sun and then some. While car buying is a complicated process, there is no need for you to meet more than five people throughout the process.
The reason this is a red flag is that it’s well known that each of those people has a duty to get you to pay more, so the more people you meet, the more you’ll likely pay—unless you’ve got an iron will. You might even encounter a dealership that drags out the process so long, you’re ultimately willing to pay more just to get out of there to eat, hydrate, and sleep. Again, be willing to walk out so you don’t fall victim to that.
Know Your Credit Score Before You Shop
If you’re going to the Audi dealership in Dallas, you won’t encounter any sort of dishonesty in this regard. However, some dealerships will lie about your credit score, telling you that you don’t qualify for a certain loan due to it being too low. If you walk in having run it beforehand (you get one free report per year), this can be avoided.
If your credit is currently not ideal, take a few months to clean it up before shopping for a new car. Another tip is to come in with your financing already done through your bank or credit union, as you’re not only likely to get a better deal, you’re also showing the dealership you’ve done your homework.
Be Wary of Add-Ons
You might have a price that you can work with and then all of a sudden it’s inflated by thousands due to add-ons. Understand that the warranty for “only $40 more a month” is going to add up over the year. Also, do not sign any agreement that includes document preparation or customer service fees.
Shop at the End of the Month
Like all businesses, dealerships have monthly and yearly sales goals. If you go at the end of the month, you might find that the salesperson has a bit more wiggle room to get you where you want to be.
Get familiar with these ins and outs of buying a new vehicle and you could very well be driving your dream car soon enough.