There is something exhilarating about sitting behind a brand-new car and driving home for the first time. It’s clean, smells great, and you can’t wait to show it to your friends and neighbors.
Unfortunately, that is the fun part, and it may come hours after stressful back-and-forths at the dealership. The next time you are ready to upgrade your daily driver, remember the following tips to make the car-buying process a breeze.
1. This Is My First New Car
Buying your first brand-new car can be an exciting event. But, no matter how stoked you are to drive off the lot in your new vehicle, it is important to keep your emotions in check and act like you are a veteran car buyer.
Seriously, the last thing you want to do is let the salesman know you are an amateur negotiator. This leaves you open to being taken advantage of and paying a higher price for the car. It is best to keep quiet and bring along a friend or family member to help you through the process.
2. This Is the Maximum I Can Pay Each Month
One of the first questions you will be asked will be about your budget. If you plan to finance the vehicle, the sales staff will ask you how much you can afford for a monthly payment. Being honest and providing your monthly limit is a huge mistake to divulge to the salesperson.
This information lets the dealership know precisely how much you can afford, and they will no doubt try to stretch it as much as possible. If you can afford $400 per month but would rather pay $350, you are better off telling them your monthly limit is $325 to give yourself some wiggle room in negotiations.
3. I Don’t Know What My Credit Score Is
Knowing your credit score is one of the most essential tools in driving off the car lot with a great deal. Your credit is one of the main factors in loan approval and interest rates. The better the score, the lower the rates and monthly payments. In the long run, it can save you a lot of money throughout the loan.
That being said, letting the dealership know you are unsure of your credit score can set you up for manipulation. Salesmen can use your naivety to demand a hefty down payment or higher interest rates. Plus, knowing your score and the rate you qualify for makes you appear informed and confident.
4. My Current Car is Falling Apart
Letting a car dealership know you may be desperate for a new car lets them know you might be willing to make a quick decision without extended research. This may not be the best way to motivate your salesman to find you the best deals and discounts.
Additionally, letting them know your car is falling apart can severely lower its value as a trade-in. You want to get as much as possible for your used car, so keep those subtle rumbles to yourself. It could wind up costing you a pretty penny if you divulge all of the minor problems.
5. I Plan on Buying in Cash
The margins on car sales are very slim these days. Car salesmen make the most money by getting their customers to finance both new and used vehicles. Letting them know you are paying in full ensures they won’t make as much on the sale, thus making them less likely to help you get the best deal.
If you plan to pay in cash, keep that information to yourself for as long as possible. If you are paired with a shady salesman, they could raise the price of the car to get more money in their pocket.
6. I Already Have a Car Loan Lined Up
As mentioned, car dealerships make the most money by getting their customers to finance a new or used car. Ideally, they want you to use their financing companies. While coming into the dealership pre-approved is great for you, it tells the salesman they are not going to make money off of your own financing.
Instead of telling them about your pre-approval, wait until you are in the financing room. In an ideal situation, you will either walk out of the door with your set interest rate or get the dealership to get you a better deal. Either way, it is a win-win.
7. This is My First Dealership Stop
Car dealerships are extremely competitive. Once they get you on the lot, the last thing they want is to see you cross the street to shop at a rival lot. That being said, you want to imply that you have multiple options when shopping for a new vehicle.
If you are in the initial stages of shopping, keep that information to yourself. Be vague and do not show any commitment to one dealership. Once you are ready to get serious, visiting multiple dealerships can give you a leg up in negotiations and start a bidding war among the local car lots.
8. Tell Me About the Extended Warranty
Having a reliable warranty on your car is important for self-assurance and future mechanical issues. But, the addition of purchasing an extended warranty has become a scam in the last few years; the idea of it has become a joke and a viral meme. Sales associates must make a huge profit to get their customers to buy these expensive warranties.
Selling these plans can generate massive financial gains. They are easy to sell because no one wants to pay for car repairs. Still, most of the plans are partnered with shady companies. The repairs may or may not be covered, leading to extra headaches in the future.
9. I Don’t Really Know Much About Cars
Telling a salesperson you “don’t know much about cars” gives them all the power. If you are paired with a greedy associate, you could be setting them up to manipulate you and prioritize their interests over yours. It’s okay to go into a sale with little knowledge, but it may be wise to bring a friend along to help you if you have any questions.
Also, do some research on your own. There are plenty of videos and articles online to help you answer any questions before you step foot onto the lot. This can help you avoid dealing with a pushy salesperson trying to get you into a car you don’t like.
10. I Love This Car
It doesn’t matter how much you love the vehicle; try to tell the staff that you are willing to walk away if the price doesn’t match your budget. Showing that you are attached to a car can allow a sales rep to get you into a deal that is not beneficial to your finances.
Remember that it is okay to walk away from the negotiation table. At the end of the day, the dealership wants to sell you the car. Hold out for what is best for you and your family, and wait for the sales rep to come to your specific terms.
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Source: USNews.
