Due to the increasing prices of today’s automobiles, it is more important than ever to make sure you get the best deal before you sign on the dotted line. However, with so many options available in today’s world of automobile shopping, knowing how to get the best price can sometimes be confusing.
Whether trying to decide how much your trade-in is worth to whether or not you really need to pay various fees associated with the car buying process, these and other factors play a large role in whether or not you get the best deal. If you are still trying to decide how to properly price an automobile before buying, here are some details you will want to keep in mind as you shop.
Use Objective Sources of Information
Before you ever set foot on a car dealership lot, always make sure you have poured through numerous sources of objective information that are geared specifically toward consumers. For many car buyers, these include Consumer Reports, Motor Trend, and various others such as JD Power, Kelly Blue Book, and Edmunds. Since each of these sources has a website, scanning information is easier than ever. When looking over information from these sites, always look at price comparisons, safety reports, trade-in values, and other factors that will be important when making a final deal.
Don’t Be In a Hurry
If you let yourself get in a hurry to buy your new vehicle, you will not only be doing yourself a great disservice, but also costing yourself thousands of dollars along the way. If you allow yourself to fall in love with the first vehicle you find, you will lose your objectivity. Should you do so while attempting to negotiate pricing with a dealership, chances are you will fail to get the best possible deal. To keep this from happening, always take your time shopping, find several vehicles that would be suitable, and then start talking money with the dealership.
Know What You Can Afford
If you really want to save money when buying a car, always know what you can afford before you begin doing your serious shopping at dealerships. By doing so, you will resist the urge to purchase a car that breaks your budget, which often results in you paying thousands of dollars in additional interest over the course of your loan.
Focus On the Invoice Price
When many car shoppers find a vehicle in which they are interested and start negotiating with the dealership, they make the mistake of negotiating down from the asking price. Instead, you will get a much better deal if you work your way up from the dealer’s invoice price. However, this can be difficult if you have not done your homework beforehand, since dealers are reluctant to reveal their invoice price. To find out the price on your own, visit websites such as CarPrices.com. When you do, you’ll be able to find not only the dealer’s invoice price, but also the dealer’s true cost after rebates.
Trading In Your Old Car
Assuming you have an existing car you want to use as a trade-in toward purchasing a new vehicle, there are several points to remember. To begin with, it is almost always better if you can sell your previous vehicle yourself, rather than relying on a dealership to give you the best price. However, if you decide to trade it in to a dealer, always make sure you know its value beforehand by using the Kelly Blue Book or Edmunds.
Along with this, if you let the dealership examine your potential trade-in, always make sure you keep an extra set of keys and copy of the vehicle’s registration with you. While somewhat uncommon, some dealers will refuse to return your original car to you until you agree to purchase through them. By having the keys and registration with you, this problem can be avoided.