Here are some top tips from Riz for you to remember before heading to the dealership.
So what are some key points of information I should know before starting negotiations with a dealer?
Negotiating with the dealership is one of the most daunting steps to buying your new car. With these tips under your belt, you can feel more equipped to hashing it out with them.
Car buyers should be aware of how many cars of that particular model that they’re looking at are at the dealership that they’re about to start negotiating with.
You should also know what dealers are paying – that’s important because it gives you a starting point to begin your negotiations with.
Generally what also helps is if you take a member of family or friend because they may have a better idea of what sort of price to pay and what sort of price would be good to get that deal for you.
One of the other top tips I can give you is not to settle for the first price that is offered to you from the very first dealer.
Try and compare prices between a couple of dealers; which could take a bit of time, but is worth when comparing your best deal with what others are getting.
That way, you know you’re actually getting a good deal and not an average price that everyone else is paying, or getting ripped off.
What is the best method of negotiation with dealerships?
So there’s a couple of ways you can negotiate on a new car;
- The most common one being face to face where you would go and visit the dealer after your test drive, you sit down with the salesperson where you try and negotiate a good deal that works for both the car dealership and for yourself.
- The other option you have is doing it online. This is not commonly used, but it could allow you to reach out to multiple dealers without having to physically visit them and this could be as easy as reaching out to them via either online contact forms that they have at the dealership websites.
- The third option is over the phone where you can ring a couple of dealers and see if they have the car in stock and what the best price they could do it for is.
Out of these three, face to face generally works the best because the car salesperson knows you’re serious and about to buy and are more than likely able to give you a good deal.
It could be a little intimidating, but you can end up with a better deal if they know you are serious about buying.
Do prices differ between dealerships on same models?
So if you’re looking at buying a new car, the prices certainly do differ.
For exactly the same car between two dealers, the difference could be from a few hundred dollars to a few thousand depending on a few things.
Whether that car is available at each dealer and how the dealer is tracking with regards to their monthly sales.
A dealer that is falling behind on sales may have more of an incentive to sell a car to you at a cheaper price because they don’t know when their next sale is coming.
These dealers are really trying to hit that monthly target so they can be paid by the manufacturers. This includes bonuses and other incentives that the manufacturers would offer to their dealers to make sure that they get rid of those cars in order to reach their monthly target.
How many dealers should I get offers from to compare with?
To get a good deal, and know where you stand, a good rule of thumb is 3 dealerships.
Once you have 3 prices, you can put them next to each other. This way you know whether you’re getting a good deal and how it compares against others.
Again this could be a difference of a few hundred to a few thousand dollars depending on the dealer’s sales targets and stock levels.