Looking to buy a new car?
First rule of buying a car is anything is negotiable. I sold cars one summer while taking a break from college and I learned a lot. The biggest eye opener was how the dealership tries to keep consumers focused on their car payment and nothing else. Why? There are a ton of variables you can manipulate to change your car payment, other than reducing the price of the car. Use these tips below to purchase your next car.
Stay Focused on Price and Trade in value:
When buying a car there are only two numbers you need to stay focused on, the price of the car, and the amount their going to give you for your trade in. One of the tricks they taught us as a car salesman is to only have the customer focus on the payment. This way we could adjust the payment by reducing the interest or lengthening the term of the loan.
The dealership taught us a method called the foursquare when selling. Basically each quadrant had a different number. One quadrant has your trade in value, price of the car, down payment, and monthly payment. If the customer talked about anything other than the payment we would keep moving them to the payment quadrant…don’t get sucked into this gimmick.
Pay Cash when buying or Act like you’re paying cash when buying a car!
I only recommend paying cash for a car, but if you don’t have the cash to buy a car at least get pre-approved at a bank before you walk into the dealership. This not only saves you the hassle of waiting in the finance office to get approved for a car loan. But it also allows you to get a pre-approval letter which is essentially like walking on to a dealership lot as a cash paying customer.
Armed with cash or a pre-approval letter you can stay focused on reducing the price of the car. The point is to save as much money as you can. I have a rule of saving at least a $1,000 off the sticker price of any car I buy.
Remember everything is negotiable at the dealership. They are going to pretend like it’s impossible to take $1,000 off the car. However, if they want to sell the car they’ll take the thousand dollars off. And I wouldn’t suggest buying a car if you can’t take that much off the sticker price.
Kelley blue book is your best friend!
When buying a car you always want to check the Kelley Blue Book before you go and purchase it. This way you know you’re getting a great deal. Never walk on to a lot to shop for a car. You need to know exactly what you want. And before you go look up what the Kelley Blue Book value is on the car. This way you know if you know where to begin the negotiations.
When you buy your next car ask for a $1,000 off the sticker price. If you are not buying the car with cash get pre-approved at a bank before you walk on the lot. And more importantly know the exact vehicle you want before you go to the dealership. This way you can do some research into the value of the car. Then when you walk onto the lot your only concern will be the price of the car and nothing else…don’t get sucked into focusing on the payment.
I hope you find this article helpful! I want to help save you money.