For many, the idea of buying a car is a distressing task. From the salespeople running to grab your attention to haggling over the price, car shopping is not a fun event for most people. However, it does not have to be a bad experience at all.
The most stressful part of the car buying experience can be negotiating over the final sale price. Most people know that the salespeople on the car lot expect that you will want to pay less than the sticker price. However, many people think that getting a lower price on a car is simply a matter of being able to hold out until you get the price you want. In reality, the real art of negotiating the price of a new car is understanding the elements that affect price in the first place.
Most people realize that cars that are in higher demand are probably going to cost more. However, there is more demand than the individual popularity of a single brand or model of automobile. The overall demand for cars in general has a major effect on price.
During times of economic downturn, people typically don’t spend as much money. This is certainly true for a product that costs tens of thousands of dollars. This can be an advantage to you because car dealers are in the business of selling cars – not having them sit on the lot.
If you know that cars sales are down for the industry, or even in the area in which you live, this should be on your mind from the very first minute you walk onto the lot. If the salesperson seems unwilling to reasonably negotiate the price, let him or her know that you are aware of the current car-buying climate.
Time of Year
Something else that is directly related to car demand is the time of year in which you are purchasing an automobile. Convertibles typically sell better during the summer for obvious reasons, while SUVs are in higher demand during the winter – especially in cold weather climates.
If your dream car is a convertible or a sports car, try waiting until the winter months to make your purchase. Dealers know that having a convertible on the lot in November typically means it may sit there until April. Again, car dealers don’t want a car to sit on the lot for several months. They want to move it as quickly as possible.
Many people who go to purchase a car don’t think about the financing until they are in a small room with a camera on the wall signing a bunch of legal forms. However, this is also something that can affect the price of the car and help you get a better deal.
Before you go to purchase a car, you should be aware of your credit score. If you are unsure about the condition of your credit rating, you should contact the three credit bureaus and find out.
If you have good credit, you should let the salesperson know that you are aware of your credit position. Most car salespeople are less willing to negotiate price with people who have bad credit. The reason really comes down to a lack of choices. When you have bad credit, it is harder to find banks that are willing to finance a car purchase. This also means that the dealership has to worker harder – and you pay for that.
The Bottom Line
When you decide that it’s time to purchase a new car, do a little homework first. Decide what type of car you plan to purchase, and decide if you should wait until a different time of year. In addition, do a little homework on your credit to determine if your credit is going to help or hurt your negotiations.
Finally, don’t be intimidated by the salespeople whom you meet. Remember that you are the reason they make money they want your business as badly as you want that new car.Finally