| I have over 20 years experience at a new car | | | | dealers, don't be afraid to play them against each |
| dealership. I have sold cars, been in fleet sales, a fleet | | | | other. Dealers HATE to lose a deal to a competitor |
| manager, leasing manager, finance manager, inventory | | | | and will likely go lower to get the deal. |
| manager, and produced vehicle advertising. In general I | | | | The second tip is to only buy the car and nothing else |
| would say that a new car dealer is very motivated to | | | | from the dealer! Make it very clear that you don't |
| get the maximum possible revenue from each | | | | want, and won't pay for, paint sealer, fabric protector, |
| customer. (This is also true for most businesses) | | | | service coupon books, paint stripes, alarm system, |
| Dealership management typically adheres to all rules | | | | window tint, life insurance, tire warranty, etc., etc., etc. |
| and regulations and will not allow deceptive selling | | | | Any of these things can be gotten later, if you have to |
| practices. The general problem for the consumer is | | | | have them, at a lower price. If you want an extended |
| that they are usually less skilled at the buy/sell process | | | | warranty, call a few dealers after the purchase and |
| than the dealership staff. The staff does this all day, | | | | get it at a discounted price. It is common for the |
| every day; the customer may buy once every few | | | | finance department to "load the boat" with extras. |
| years. I can't tell you all that I know on one page. I will | | | | READ the paper work they present, especially |
| try to give you a few tips to help level the playing field. | | | | anything with price figures. Tell them to take off any |
| The first tip is to go slow in the shopping process. The | | | | extras and walk if they won't. (They won't let you walk |
| dealer will usually press for a commitment to buy | | | | too far!) |
| TODAY! Don't be rushed to buy. There is almost | | | | If you have a trade in, negotiate that separately from |
| never a great deal today that will be gone tomorrow. | | | | the cost of the vehicle. If possible get a bid from a |
| First choose the type of vehicle you want, and decide | | | | place like CarMax for an indication of your trade-in |
| which options you need. Then you can contact multiple | | | | wholesale value. |
| dealers for a price quote. It may be better to do this | | | | Shop for your own financing and only use the dealer |
| online or by phone. At this time you should find out | | | | arranged financing if they meet or beat what you can |
| what factory specials are available. Consider the | | | | get elsewhere. |
| advantages of a low rate vs. a larger rebate if that is | | | | A typical profit for the dealer can be about $3,000 |
| the case. Are you eligible for any special pricing plans | | | | including the vehicle and financing. On some customers |
| such as X or Z plan because of being a close relative | | | | the dealer might make $10,000 or more in profit. If you |
| of a factory employee or because of the company | | | | use these tips you may be able to reduce the dealers |
| you work for? After you narrow your choice of | | | | profit to a small amount. |