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.