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.