Car Buyer’s Guide – Negotiating with a Dealer

car deals

While most of us readily haggle over the price of vegetables or the cost of an auto ride, we’re convinced a car dealership demands too suave a temperament to bicker over prices. It may come as a surprise to some that most fertile opportunities to save a pretty penny present themselves at the dealership. It’s hard to pin it down to a science but the ability to drive a hard bargain comes down to  beating car sales executives at their own game, which is no mean feat. Buyers can derive comfort from remembering that a salesman can’t talk you into a deal without your express consent.

In order to be able to confidently parley over the price of your dream machine, begin the process of studying the negotiation beforehand. This allows for making an informed decision exactly how good a deal you’re getting on the car and how much further you can push to drop the prices. Thus may start with things such as surfing around the internet to get information on the prevalent market prices, loan rates, and potential seasonal discounts. Once that’s out of the way, it’s all down to how well you’re able to wrangle with your car salesman.

car deals

Here are few tips to keep in mind when negotiating with a car dealer:

1. Scour the internet for data such as the invoice price paid by the dealer to the manufacturer. Also check out any rebid information and hidden incentives with the dealer. Keep in mind that the minimum dealer profit is usually 3 to 5 percent. Make a calculation of a fair price for the car based on the information you gather. Doing your homework helps you be more convincing since you’re convinced yourself exactly how much you think the cost should be.

2. Do not get carried away with everything the dealer tells you. He might present you with a work sheet when you sit down with him to negotiate. This work sheet would constitute of purchase price, down payment, monthly payment and trading value. But by now we know better than to be hoodwinked by a bunch of numbers arranged to make it look like the car is being sold at close to no profit. This is where you recollect all the hard work you put in earlier and talk the numbers you’re interested in.

negotiating with a car dealer

3. Resist negotiating solely based on the monthly payment without contemplating swelling interest rates or stretched out terms. Monthly payment results from the down payment, long term and interest rate.

4. Remember to always have your game face on in order to throw salesmen off their own game. React with sarcasm and surprise to initial pricing estimates in order to show from the outset that you’ve got a plan . Dealers try to create a pressure cooker sort of situation for buyers in order to force the impulse buy.  Stave off any attempt to get you to close the deal in a short span. The longer you keep at it, the better chances you walk away with a good deal.

5. Another important think to remember is not tell one dealer about another dealer’s quote. This may seem like a good tactic but it’s the oldest play in the book and nobody’s falling for it. There’s also the fact that bringing up another dealer is only going to make the one you’re interacting with think about his own results in the light of another dealership, which is not what you want. Though you may be at loggerheads with each other for a while, make sure to keep the conversation amiable.

Nissan_Car_Dealership

6. Don’t forget to mention you’re prepared to discuss an acceptable trading price for your old car. Even if there isn’t an official exchange program, it’s worth a shot. But first, be sure you have a satisfactory price on the new car. Exchanges tend to take the biggest chunk off the price of a new model.

7. Be prepared to walk out if the dealer makes the price non-negotiable or if there’s too much acrimony for the bargaining process to continue. Doing your due diligence will help you be sure when exactly it isn’t too dramatic to leave as a result of getting a raw deal. But before you storm out, make sure to pose a yes/no question with the price you have in mind. This can often lead to a sudden relenting on the dealer’s part. Secretly pat yourself on the back once the dealer walks away to get your paper’s ready.

buying new car

8. Expect an on spot of fees and extras just when you think you’re done. Although having to remit some amount might be unavoidable, most such fees can be dodged. Most times the extras are unnecessary and overpriced. In order to be sure exactly what fees are obligatory, make sure to talk to someone who’s made a similar purchase before or fall back on research off the good ‘ole internet.

If you have missed the Part 1 of this article click here: Car Buyers Guide

Car Buyer’s Guide – Choosing the Right Model

The car market has burgeoned over the years and though fluctuations in the economy tend to affect the rate at which they move, new cars are being inducted into the market at an unprecedented pace. This process of choosing one out of a veritable smorgasbord of models is an uphill task. The immensity of the task is amplified in the case of those buying a car for the first time. For those confused on how to choose the right model your first time buying a car, here are a few tips to consider in order to narrow down the field.

Buying a car can be cakewalk, but choosing the right model is an essential first step in the process. First-time buyers need to be all the more cautious since your first car sets the tone for the choices you make in the future. So here are the following tips which you must take care of.

car-for-sale

1. WHAT KIND OF CAR YOU NEED

You must be very clear as to what class of car it is that will best service your requirements. Think for a moment about the purpose of your car, the kind of driving you intend to do with it (long or short), and the number of people you need to transport on a regular basis. Here are few other things which you need to take into account:

– Manual or automatic transmission car

– The amount of boot space you require

– How much style or cosmetic factors matter

– Big or small car to fit in your garage

hyundai grand i10

2. WHAT IS YOUR BUDGET?

The cost of a car can make or break a deal. In a cost-conscious country such as ours, manufacturers are always selling on price and queue up discounts during the festive season. You’ll have to think about financing your purchase or leasing it if you cannot afford to fund the purchase yourself. Going by the rules, not more than 20 percent of your monthly pay is to be allocated to towards your car payment every month. Both leasing and buying have their own advantages.

If you buy a car, you can sell it whenever you want. It is more beneficial to own a car when interest rates are low and to not have to switch cars. In a case that is less frequent, if you decide to lease a car you can drive home an expensive car at a lower cost. This means slightly higher costs over the long run but also offers to leverage to try different models.

Nissan_Car_Dealership

3. PURPOSE OF BUYING THE CAR

This is a crucial factor as to why are you buying a car- depending on whether it’s intended for a family, commercial purposes or for personal use. If it’s for family use, buyers should opt for a spacious car with an intensive interior package such as comfortable seats, sufficient leg and head room and with good safety controls. For commercial purpose a car which offers good mileage, powerful engine to resist heavy workload and ease of maintenance is the way to go.

Finally, when it comes to a car that is for personal use, you can let yourself go. A wide range of cars with elegant looks, stylish exteriors and a powerful engine exist in the market and it comes down to which one captured your fancy.

4. GO FOR A TEST DRIVE

Getting a feel for the car is imperative before taking a call on it. Intimate the dealer by phone or e-mail before meeting him in person. Ask them whether the  specific model that you are searching for is currently present in stock. Make sure to mention that the intention of the test drive is to simply put the car through its paces and see for yourself if it caters to all your requirements. Make sure to set an appointment with a manager rather a salesperson to avoid lengthy negotiations in order to save both money and time.

maruti celerio red

5. CONSIDER ALL VEHICLES IN THE CLASS

You might have set your mind on a particular car but in today’s world of competition, new cars are hitting showrooms rapidly. The cars which you may not consider, may turn out to be the one that were best suited for you. Keep favorites at the top of your list but give the other contenders in the class more than a cursory glance. Once you feel that you have found a perfect match for yourself, check the detailed information regarding factors such as pricing, features, specifications and on road tests.

If you have missed the Part 1 of this article click here: Car Buyers Guide

Car Buyer’s Guide – An Overview

parking lot

“Kitna deti hain?” is probably the most common question car dealers hear. While mileage is an important point to factor in while buying a car, it isn’t the only one. Whether you’re a first time car buyer or a seasoned car-hopper, choosing the right car to buy is never easy. The challenge is heightened by the fact that there has been a heavy inward flux of international car makers in the Indian car market off late, many of whom have chosen to set up local assembly or manufacturing facilities. The result is that the average Indian car buyer is served up a veritable smorgasbord of options, with parameters to differentiate between models ranging from the number of seats to the number of airbags.

car showroom buying guide

For those of us who’ve made the choice to buy our first car, it’s imperative we choose the right model in order to kick off our driving careers on the right foot. A botched first attempt can lead to unnecessary heartache and possible scarring for life. Most times, buyers end up being tunnel-visioned regarding the factors that they need to keep in mind while picking their first car. This could lead to regret in the future as a result of overlooking some key details. That said, the process needn’t be all gloom and doom as you could very well end up with a trusty workhorse you share many miles and moments with.

Here’s an overview of the things to keep in mind when purchasing your first car:

Choosing the right model

parking lot

The importance of this first step can’t be stressed enough. It may seem obvious enough that picking the appropriate model based on your set of requirements is key, but what trips up most novice buyers is how to arrive at exactly what their most pressing needs are.

One of the major factors to bear in mind is your own ability. There are some who’ve put in a considerable number of hours behind the wheel before getting their own car while others may be cutting their teeth after making the purchase. Thus while the former cohort has the leverage to choose more capable models, it is wise for the latter group to dream modestly for the moment.

Another factor which is paramount is the purpose that the car is going to serve. While some may view their car as a way to put long, sweaty bus rides behind them, for others it is a window to explore the world, akin to how Columbus felt about the Santa Maria. The shape your future car takes will depend heavily on the consideration.

Negotiating with the Dealer

A good haggler always gets the best deal. What may come as a surprise to many is that crossing swords with your local dealer isn’t the only way to walk away feeling like you landed a sweet deal. There’s about seven different kinds of discounts that buyers can take advantage of in order to get the market price of a car slashed. This includes dealer discounts, loyalty bonuses, corporate discounts, and finance and insurance discounts. Not everyone is eligible for some of these and the extent to which the price is lowered also depends on the car model and market conditions. Being able to make use of three to four kinds of the aforementioned deductions can lead to a considerable amount of money being saved.

"Tata Bolt 2015"
Image Source: www.autoevolution.com

Arranging a Loan

For those who may be saving for a rainy day or have had too many rainy days to have anything saved, there’s always the good ‘ole loan. There’s a chance a first time car buyer isn’t able to swing the entire amount on their own in which case a loan is the way to go. The challenge, however, is that choosing a loan provider can be as much of an uphill task as choosing a car itself. The relationship between buyer and loan provider lasts until the loan has been cleared so choosing wisely is of the essence. It makes sense to go with a bank you’ve been affiliated with if your experience with their other services has been a pleasant one. Buyers should also make sure not to gloss over the terms and conditions (as loaded with legalese as they may be) in order to avoid hiccups once the deal has been made.

Resale Value

So you’ve followed the car buyer’s guide and ended up with the car of your dreams. As much as you’ve enjoyed the machine and the miles it’s given you, there’s a good chance it’s time to give it up for an upgrade. Depreciation is possibly the biggest cost car owners incur and needs to be accounted for before purchasing the car. Factors that drive the drop in a car’s value include the company’s reputation, model supply strategy, maintenance costs, and accessories. Even factors such as the region where the car was used factors in. In coastal areas corrosion may result in depreciation while areas with good roads tend to mean a better faring car in the long run.

– Guide to choosing the right model… check HERE

– Tactics to negotiate with the car dealer for the best offer… check HERE