Notes and Negotiation tips on Buying a New Car

 

  1. The best day to buy a car is the last day of the month.
  2. The best month to buy a car is the last day of March
  3. If the weather is bad it will help, people do not shop in bad weather
  4. Do not test drive a car on the day you are purchasing it, you should do that well before entering the dealership
  5. The best time of day is within 45 minutes of closing and staying in the dealership well after closing.
  6. Before you start the sit down process pump the salesperson for as much information as possible about sales that day, you should have a list of questions to ask, sales today, this week, this month, how close are you to your monthly goals individually and store wise.
  7. Before you enter the dealership do your homework on the web with www.edmunds.com and asking for other dealers within a geographic area to give you the best offer on the make and model you are looking for.
  8. Visit the website www.usatoday.com and look in the business section for articles on car automobile inventory.
  9. Cary this information that you have gathered with you into the dealership.
  10.  Set a goal for the price of the car you want. That goal will depend on the make and model and how popular it is at the moment. The less demand the better but if it is a high end car at the right time of year it should be as high as 27% off Manufacturers Suggested Retail Price (MSRP) Lower end cars and popular models will be between 5 and 10% of MSRP.
  11. Get the dealer to propose a reduced price first by saying “you do not expect to sell this car for the sticker do you?” ask this as many times as they come back with a lower price then you can start to counter. When you think you are at the end of the road and they will not go any lower verify it by asking at least three times and hearing the worn at least three times.
  12. You will also have to start walking to the door several times acting like you do not like the deal and are going to leave. The car dealer knows that if you leave the lot you will not come back as the studies show that 98% of the people who leave a lot buy somewhere else. This process is time consuming and will take a significant time investment if you want the best deal. Do not rush it! In fact you should be forcing their hand by telling that you have something that has to be done and you will leave if they want your business. Make sure the sales manager and the salesman know all the reasons this is not a good purchase for you such as my spouse does not like it, my kids do not like it, the color is close but not exactly what I want.
  13. Do not trade in unless you expect to get wholesale value, less deductions for tires, windshields, dents, dings, etc.
  14. Do not buy extended warranties, Teflon coating, or anything else that the finance department sells it can all be purchased much cheaper after market.
  15. After the deal is struck they will start talking about the customer service rating form that will be sent to you. Tell them that you hate getting them and you always mark unacceptable so they will stop sending them to you. This has a significant impact on the dealer and they will beg you to not do that. Propose that for another $300 off you will sign it and bring it in to them so they can complete it otherwise you will go with your usual method.
  16. Ask for anything else that you can think of free services, loaner cars, floor mats etc as a last ditch effort to get everything y