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Car Selling - How To Get The Best Price

Aug 17, 2007
Buying a new car can be confusing. All-too-often, a buyer drives off the lot to discover that he paid too much, or wasn't offered the same incentives as someone else. Avoid being taken advantage of when purchasing a new car by following these simple tips:

Get Your Financing In Place First:
Compare, compare, compare. A dealer's rate might seem great - until the buyer discovers that only a select few actually qualify for that low-interest rate or cash-back bonus. Check with local banks, credit unions and other finance options before heading to the dealerships. Being finance-ready may ultimately help negotiate a better deal.

Do Your Homework:
Never enter a showroom unprepared. That gives the salesperson way too much control. Know what type of vehicle you want, what the models available offer, average prices, etc. Basically, know what you want and about how much it's going to cost. Be prepared to leave the dealer if you don't find what you want.

Be Ready To Negotiate:
Don't start negotiations based on the sticker price. Good negotiators go online to find out what the dealer paid for the vehicle, which may or may not include any additional sales incentives or dealer bonuses, and begin their negotiations there. The average starting point is about 4 to 8 percent higher than the dealer's final invoice price.

Another thing to watch out for when haggling over the purchase of a new vehicle: negotiate over one thing at a time. Salespeople like to mix financing, leasing, options and trade-ins into a single negotiation. Or they may ask you to negotiate over a set monthly payment. Both of these tactics gives the dealer the benefit. Settle the price first, then negotiate trade-ins and financing.

Stay Away From Options You Don't Care About:
There sure are a lot of options available for new cars today. While they might seem "neat" at the time, remember, you're paying for each and every one of those nifty gadgets. Carefully consider what options you want and need on your new car before heading to the dealer showroom. Unless the salesperson is willing to add it for free, don't take anything that you don't want to pay for!

Another thing to watch out for: unnecessary add-ons by the dealer. Check the bill of sale for things like rust protection or stain guarding on upholstery. Most cars these days already come with high-end rust protection, and stain guards can be done easily (and a lot less expensively), after the sale.

Buying a new car doesn't have to break the bank. Smart buyers can get a good quality car at a price they can afford, with a little knowledge.
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