Archive for February, 2012

Welcome to part 2 on how to learn the art of negotiating the price of a new car.

Just a reminder: if you are buying a new car, you should know the true dealer cost of the car that you want. The true dealer cost is an effective way to get the lowest prices for any type of new car.

You can use the true dealer cost and the dealer invoice to negotiate a fair price at the dealership. Read more on the art of negotiating the price of a new car in order to save money on the car that you want.

The Art of Sealing the Deal: How to Negotiate the Price of a New Car Part 2

4. Depending on your credit score, the interest rate or APR rate is also negotiable. If you are going to finance the car at the dealership, you should have your credit report ready. The finance manager will ask for your credit report and take a look at your FICO score. Your FICO score will be used to evaluate the APR rate according to current industry standards. If you have a good or average credit score, talking to the finance manager and negotiating the APR rate will help you get lower monthly payments. Do not let the finance department get your credit score for you. It is your duty to check, correct, and bring your own credit report to the dealer.

If you suspect that the finance manager is giving you an unfair rate, do not be ashamed to tell him/her that: “I think my bank will be able to give me a better deal than what you are offering.” The car dealer will do everything just to prevent you from walking away from their finance offer.

It is no secret that car dealers earn a bulk of their profits from selling vehicle extras and from new car financing activities.

5. If you already have pre-approved financing from your bank or credit union, ask the finance manager if they are able to propose a better offer. This means that you are challenging them to come up with a lower interest rate. In part 1 of this series, we mentioned that it is better to apply for financing from outside sources rather than at the dealership. This will help you determine outright if the car dealer is able to offer a better deal. All that you need to do is choose which will offer the lowest rate and the best financing terms.

It is easy to negotiate the price of your new car. Follow our tips on the art of negotiating and you are sure to get the lowest monthly payments and the lowest interest rates.

Date: February 29th, 2012

It is hard to ignore the inevitable. If you are buying a new car then you will have to negotiate the price with the car salesman. The same rule applies to leasing a new car. No matter what type of car that you want to buy, you will need to learn the art of negotiating the price in order to save thousands on a new car.

Negotiating with a car salesman is not an easy task. Remember that the people employed at the dealership–car salesmen, sales managers, etc.–were all trained in the art of selling. If you are not careful, you may not realize that you are already paying too much for your new vehicle.

Not all people are the same, though. Honest car dealerships still exist, and we will help you talk your way towards negotiating a modest price.

The Art of Sealing the Deal: How to Negotiate the Price of a New Car

1. Get an online quote before you buy. This will give you the information to leverage the negotiations in your favor. If you approach the car dealer with nothing to show for, then you will be given an onslaught of confusing information. If you request a free online quote, you will know the dealer invoice and the true dealer cost, the two things that you need in order to save thousands on a new car.

2. Talk about the final price, before settling for additional options. Before you allow the car dealer to ‘sweet talk‘ their way in offering you additional vehicle options, you should settle the base price of the car. New vehicles come in different trims, and they are all negotiable. Use your online quote to start negotiating the price of the car. If you feel that the dealer is trying to push the deal towards their favor, you can always exit the premises and walk away. Remember: you should INSIST on the final selling price first, before adding vehicle options.

Tip: Vehicle options are also negotiable.

3. Now that you have settled the final selling price, it is time to talk about financing. Experts strongly advise to request a car loan from your bank or credit union, instead of financing the car at the dealership. However, it never hurts to check out the financing packages offered by car dealerships. Your free online quote will not only show you the true dealer cost, but this will also give you the opportunity to view all the current financing offers in your zip code.

More tips coming in the next post. If you want to buy a new car, you should arm yourself with all the information that you need in order negotiate an ideal price–one that that won’t cost you an arm and a leg.

Date: February 21st, 2012

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