Negotiating Tips You’ll Need When Buying Your First Car

Written by  //  2016/02/08  //  Auto for Students  //  Comments Off on Negotiating Tips You’ll Need When Buying Your First Car

Shopping for a new car can be a stressful experience for first-time buyers because they lack necessary experience and negotiating skills. Following these tips below will help you buy your first car within your price range and on your terms.

Shop Around

Avoid contacting just one dealership or car owner. Instead, shop around and learn what people are asking and paying for similar cars. Make a list of the details and prices on every car that you are interested in. When shopping for both used and new cars, this list of competitive examples will help you obtain an appropriate price. If needed, simply phone several dealers and find out their asking price for the same car model. Use this information when negotiating with your desired dealer. Certain websites, such as Cars and Edmunds, will provide plenty of detailed information about prices.

Learn About Cars

When shopping for used cars, you must have a firm understanding of quality and car parts to gain the upper hand of the negotiation. Take time to read up on technical books, perform Internet research and if possible, spend some time with a trusted mechanic. When inspecting a used car, point out minor defects and potential problems that strengthen your request for a lower price. For example, look for scratches hidden under the bumper, wheel blemishes, and older engine parts. As a last resort, bring a friend who is a car expert with you when inspecting used cars.

Plan on Walking Away

Car salespeople take advantage of the fact that people are generally indecisive and hesitant about conflict. As a result, they gently and continually pressure car shoppers into minimally beneficial deals. If feasible, every car shopper should plan on visiting a car dealer a few times to explore their options. During every visit, be sure to explain your expectations and avoid overstaying when salespeople refuse to budge. Bear in mind that “today-only” deals are simply a high pressure sales tactic, unless the published incentives clearly end soon. Simply thank them, walk away and return in a few weeks. 

Get Your Finances in Order

If a loan is needed, be sure to get pre-approved and clearly understand the contractual terms and conditions. Know your loan limit and be familiar with your personal budget. Many dealerships will advertise very low interest rates, but these most likely will only apply to shoppers with perfect credit. Many first-time car buyers prefer shopping for a car online because they can easily and quickly compare and research cars to find a good deal. Others find that using an online banking service like TruePartner Credit Union allows them to better manage their loans. 

As a final note, car buyers should check their credit score online through the three federally authorized organizations: Equifax, Experian and TransUnion. Now when you head out to look at cars you can be confident you won’t be pressured into a vehicle you aren’t completely happy with.

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