How to Buy a New Car the Right Way

May 29th, 2009 by Thomas Munka

Image from Wikimedia

When’s the last time you went to an automotive dealership? When’s the last time you bought a car? How much did you pay? Most likely, you paid too much.

When most people think car dealer, they think about “low-balling,” and haggling down car prices. But how much should you “low-ball?” The answer is much more than you probably think.

The Dealer’s Asking Price on a car is the dealer’s asking price plus all the options you chose like DVD players etc. and a destination fee, but when dealers order a large amount of cars at one time, they get discounts that can be passed down to you. Most people will low-ball only about a $1000 on a brand new car, or just down to the MSRP value, but you can low-ball much more. A great tool for knowing how much to lowball is a website called www.carpricesecrets.com.  Basically, you enter the car year, car make ( Toyota, Honda, Jeep etc.), car model( Civic, Corolla etc.),trim level (lx, ex, laredo etc.), and your personal information like name and address. The personal information is so that dealers can contact you. The only thing you have to add to the “secret target price” they give you is the options that you want like the sunroof, navigation system, premium wheels etc. Stay firm with your price through the whole sales process. Don’t be afraid to spend a few hours going back and forth with the dealer. He/She will try to tell you that the price you’re trying to acquire the car for doesn’t meet their goal. Don’t worry, just stay persistent.

Also, from September, until Christmas is the best time of year to buy a car because all the models for the new year are coming in. For example, you should buy a 2007 Ford Explorer from September until Christmas 2007 because all the 2008 Ford Explorers are coming into stock, and dealers are usually willing to sell brand new cars from an older year at a low price.

Next time you’re ready to buy a car, do it the right, cheap way.




Posted in Auto & Motorcycle Tech, Tips & Tricks

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2 Responses to “How to Buy a New Car the Right Way”

  1. Jude says:

    You simply have to be able say ‘no, thanks at that price’ at least once to the dealer. This gives them a strong message that you are serious about your research.

    You should also bring a piece of paper to the dealership and make sure you do all the math of the finance calculations yourself. The point is not that they will do the math wrong. The point is you will see exactly how the deal is structured. Do not be afraid to take the time to do this or look like a fool for mapping out your car deal in the dealership.

    My dad swears by this process, http://tinyurl.com/knflt6

  2. Will says:

    Other great sites to do research before you go to a dealer is http://www.truecar.com and edmunds.com.


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