Car dealerships are one of the most intimidating places on Earth. People don’t go there because they want to. It's because they have no other option – they have to go there.
People hesitate to go to car dealerships because everyone knows that whenever a person walks into one, that person becomes like a sitting duck for the dealers, who is just there waiting in the line to get hunted. Well, not all car dealers are just after a customer’s money. Some truly want their customer to have a good experience so that he or she won't hesitate to come back.
But let’s be honest, the dealers are there to make a profit so they’ll do whatever they can to get as much profit from the customer as they can. This article is about some of the secrets car dealerships don’t want you to know and if you really want to save some bucks during your next visit to the lot, just read along.
15. You Should Do Research
Even before going to the dealerships, you should do your research. The first thing you should research is what type of car you want. You can easily search about this on a very handy and readily available tool called the Internet. After this, search for how much the car you chose is retailing for.
14. Bring Your Own Financials
Before setting foot on the lot, you should have managed your own financials. Don’t trust the financing or loans the dealership is offering. The salesperson will try to convince you that they can get the best deals on the loans which would have low-interest rates but in reality, they are partnered with different lenders.
13. Research The Website
Nowadays, the most powerful weapon a consumer has is the Internet. With the Internet, you can get in touch with different dealers who can then send you their different quotes. From among those quotes choose the lowest ones, go to any dealership and tell them what you’re getting, they will probably be forced to match that.
12. They Want To Sell You Machines They Want To Get Rid Of
When you enter a dealership lot, the salespersons will start analyzing you. Once they know what you can afford, they offer you the machines they want to get rid of. You can easily notice this incentive, once you know what’s going on, and should firmly yet politely tell them exactly which car you want.
11. End Of The Month Visits
Just like any other business, car dealerships have their own monthly sales goals. And at the end of the month, dealerships try their best to meet those goals. This end of the month time is best for the consumers, as during this time you will see big sales and salespeople will also seem more negotiable.
10. Request For A Different Salesperson Each Time
Your experiences with the dealerships are mostly defined by the type of salesperson you get. If you have a salesperson who is rude or pushy, as a customer, you can always ask for a different salesperson at any time. Sometimes a different salesperson might offer you less than what you were previously offered.
9. Make Use Of Banking Rewards Programs
When you become a regular customer of a bank, you are granted different rewards such as points-based rewards or some kind of cash backs. Sometimes your bank may offer loyalty programs that aren’t limited to points or cash backs but might offer you some deals on financing. So, make good use of these programs.
8. Don’t Pay More Than $500 Over Invoice
You can still get an amazing deal if you pay over the invoice price somewhere from $100 to $500. But any higher is just throwing away your money. Keep in mind that the invoice price is not the manufacturer’s retail price, it's the dealer’s cost. Before buying, search the invoice price at the NADA-Guides.
7. Be Wary Of Add-Ons
Once you have made a deal, you would be given an invoice that would have extra charges like paint protection, security system, and extended service warranty. All of these don’t add value to your car but these are surely very profitable for the dealers. If you want, you can get your car without these add-ons.
6. Have A Good Attitude
Everyone knows that buying a new car can be very unpleasant and stressful but still you should remain calm and have a good attitude, as this can sometimes make your experience with dealers more pleasant. If you have a good attitude towards the salesperson, they may be more willing to offer you a better deal.
5. Get In Touch With The Salesperson Directly
Send an email directly to the salesperson. In the email, write every detail about the car you want such as the price and take into consideration any special deals you hope to get. Finally, give the salesperson 24 hours to reply with their best price in order to show your urgency and seriousness about purchasing a vehicle.
4. Shop For Less Trendy Models
Dealerships mostly buy their cars directly from the manufacturers, and in this process, there is always a holdback or factory invoice price. This is something the dealerships get back from the manufacturers. So, if you go with a less trendy model which is not high in demand, dealers will be able to negotiate more openly.
3. Know The Credit Score
Before you buy a car, you should know your credit scores and reports. Dealerships serve as a middle man between you and the loan lenders they get profit from your transaction. So, when you know your credit scores, you will have an idea about which type of rate is best for you.
When you do your research (as touched on earlier), you should know the worth of a certain car, so you should negotiate for not how much you are ready to spend but for how much the car is worth for. Stand your ground and let the salesperson know that you can walk away whenever you want.
1. One Final Inspection
The most important thing you should do before driving off the lot with your new car is to give it one final inspection. Look for any signs of scratches or some other issues and if you find any issues whatsoever, you should ask the dealer to get them repaired without any cost or request a new vehicle entirely.