5 Easy Ways To Beat Car Dealers
Is it really a sale if it happens all the time?
If you’re thinking about buying a car, now is the time. Car sellers are desperate to get cars off the lot and raise their numbers. Salespeople are ready to give deals and get that Christmas bonus.
But that doesn’t mean buying a car is easy. Dealers know what it takes to get you to buy before you’re ready, spend more than you want, and accept bad additions that won’t help you. To get a great car at a great deal you’re going to have to be prepared.
Here are 4 simple things you can do to get a great deal on a car:
Do Your Research
Check Kelly Blue Book (KBB) for the price of your car at different levels. Car dealers have to sell cars at the “excellent” level, but they don’t always. Bring a smart phone onto the lot with you to put in mileage, features and condition to get a realistic price for your car.
This only takes a minute, and it will save you thousands. Dealers price their cars where they want to sell it for, not what it’s worth. By knowing the real value of the car, you have negotiating power.
This is especially useful if you go onto a lot unsure of the car you want. You can’t research every make, model, and year of a car. Having a smart phone with KBB puts you on equal footing with the salesperson.
Buy Used
Buying a new car is fun. They have nice smells, low mileage, and you can show it off to your friends. It’s also loses 10%-15% of its value as soon as you drive it off the lot and 60% of its value over the next 4 years.
Buying a used car that’s 3 or 4-years-old gets you a better deal and defends you against depreciation. Yes, the car will continue to lose value, but not much after year 4.
To save money, stay off the new car lot and buy used. Finding a beautiful 4-year-old car with low mileage is easier than you think – and it could save you over ten thousand dollars ($10,000)
Pay Cash
One of the best ways to save money is to pay cash for a car. If you negotiate monthly payments instead of overall price you’ll be more willing to spend more on the price of the car. Salespeople love this – it makes them a bigger commission.
By paying cash you only negotiate on the value of the vehicle. The focus you get mixed with the research you’ve done stops the salesperson from adding useless additions or increasing the price of the car without you noticing (something that happens all too often).
Buy From The Fleet Manager
This one is a bit trickier, but can save you thousands – even getting you below invoice.
Most dealers sell cars online as well as on the lot. If you do a little research (KBB) and find a car you like online, you can call the dealership and ask to talk to the fleet manager.
The fleet manager is above the salesperson and the salesperson’s manager. That’s two levels of commission you’re skipping over.
In addition to the commission you save, the fleet manager is one of the few people who know what the dealership paid for the car you want – and how much profit the dealership will make. If invoice is $15,000 and the dealership paid $8,000 and you want it for $13,000 the fleet manager can make that deal. The salesperson would have to sell the same car for $16,000-$17,000. Plus, you’d be pressured to by a lot of useless add-ons.
Walk Away
You’ve heard this before, but it needs to be said: be ready to walk away.
If you’ve done your research, are buying used, have a cash budget and still are being overcharged then you need to walk away. You aren’t married to a car you don’t own and walking out of the dealership will suddenly make new deals and discounts fall out of the sky.
Enjoy Your Car
Cars are expensive and the only way to buy them requires negotiation – a skill most of us rarely use. By doing research, buying used, paying cash, buying from the fleet manager, and being willing to walk away you greatly increase the chances of getting a great car and an amazing deal.
What’s your best car story? I’ll add mine to the comments.
Brandon (132)
Loren Pinilis (109)
Mike Luna (98)
ixnayonthetimmay (79)
Dustin (78)
moe (63)
Don Sartain (59)
Pastor Matt (36)
JeniferR (30)
Adam (20)
I am so glad that I don’t have to buy a car! My grandpa blessed me with a car… I would have never been able to get one if he hadn’t given it to me!
Brandon recently posted..It’s Time For A Christmas Contest!
That’s awesome, Brandon. You’ve got a lot of things going really well for you financially. As always, I can’t wait to see what happens to you once you get out into the world!
I’m not sure if this is right, but it seems to me to make sense:
Don’t tell the salesperson how you’re going to pay for it. That way, they may be thinking they’ll make a little money off of the financing and may go a little lower on the negotiated price.
Also, here’s the best advice I can give: don’t stress. Do the best you can at negotiation and then forget about it. You’ll always find someone who got a better deal than you, so let it go once you’ve made your decision.
Loren Pinilis recently posted..The Enemy of Prayer Isn’t Busyness
I’ve heard back and forth on how helpful that is. Like you, I’d say hold out on the way you’re paying until later (since financing = more money for the salesperson).
I’m with you on the stress. Once the purchase is done, there’s no going back — just let it be.
My best car story was when I used these tools and decided not to buy the car.
I was with the sales guy for about an hour and he wanted to sell a $2,700 dollar car for $3,500! As soon as I saw the car, checked out the mileage, etc I told them I wouldn’t go higher than $2,700. The salesperson told me they bought the car as a trade in for $3,000 and had $500 in “advertising” which was bogus because he already told me they got the car the night before and I showed up first thing in the morning. There was no advertising.
Anyway, as I was walking out of the lot, the manager tried to convince me they’d get the price below $3,000 but I didn’t bite. Glad too, because I really enjoy my paid for car
I had to walk away from a van this summer. Stunk. I really wanted it but knew it was slightly overpriced. Gratefully, another one came up and it’s been great.
dustin recently posted..Listen Here You Spoiled Little…
That’s fantastic! There is always another deal waiting for you. A wise friend once gave me this advice about buying a car:
“If it has to be now, it has to be no!”