Whether your next car will come from a dealer’s showroom floor or a private seller, it makes sense to use tactics that can keep the sales price as low as possible. It doesn’t matter if the vehicle is new or used, a discount ride, or a high-end luxury model. The principle still applies. Any legal strategy you can use to save money counts as a consumer victory. What are the methods that have gotten good results for millions of buyers?
The simplest is to avoid speaking in terms of payments with dealers. Focus on sales price and interest rates instead. Other approaches that can chop a substantial amount off the cost of an automobile include boosting your credit score before shopping for a new ride, knowing what you can afford, saving for a down payment, having a mechanic do a thorough inspection of any vehicle you intend to buy, and using an old e-commerce technique to negotiate with sellers. Here are the essential details of the most effective techniques.
Never Talk About Payments With a Dealer
Dealership representatives love to negotiate based on monthly payments, but the entire concept is a trap for consumers. Payments can fluctuate based on how many of them you make, the interest rate, and the total cost. Instead, keep any conversation you have with a dealer on two specific points: the sticker amount and interest rates. Only do that if you are financing the purchase through the dealership. If you use a bank or credit union of your choice, the only discussion you should have with a sales agent is about the total cost. Don’t select extras or add-ons at the last minute.
Improve Credit Scores Before Buying
Building up your credit is one of the surest ways to score an all-around victory in the car buying battle. That’s because the cost of borrowing takes a substantial dive when credit scores rise, which makes sense. Lenders like to deal with low-risk borrowers, so they’re willing to offer more favorable interest rates, terms, and other conditions to folks who have decent or excellent scores. It’s interesting to note that buying anything is easier when you have solid credit ratings.
Stop and think about things like renting a vehicle, purchasing a home, or borrowing to acquire a small business. It’s tough to do any of them if you have a non-existent financial history or weak credit scores. What about people who need help bringing numbers up? The good news is there are several relatively effective tactics that get results in most situations. The main pitfall to avoid is procrastination. In other words, now is the time to get busy and start taking decisive action to raise your scores.
Know Your Price Range
Never begin shopping for a four-wheeled conveyance until you know the upper and lower bounds of your price range. That includes the absolute maximum you can comfortably afford to pay in cash or credit and the lowest you’d want to pay as well. Some people say there’s no lowest price, until they see what those bargain offers look like. Do several hours of online research and make numerous price comparisons while setting your top and bottom limits of the price range.
Use the Abandoned Shopping Cart Technique
What works for e-commerce shops is also an effective way to get a low price on a vehicle. Inquire through online sellers, dealers, and individuals. Then, just before making an offer, abandon the discussion. Become a ghost for a day or two. There’s a high probability you’ll receive a lower offer in your mailbox within a few days.
Pay an Experienced Mechanic for a Report
Consumers hire professional inspectors to evaluate houses but don’t always maintain the same degree of due diligence when purchasing an automobile. Why? Maybe it’s the lower cost of a car or truck compared to a home. Perhaps shoppers just get too excited about getting behind the wheel of their new ride. Whatever the case, it’s well worth the expense of hiring a licensed, reputable mechanic to inspect a vehicle before you buy it. For about $200 in most metropolitan markets, you can get a detailed report on every system and component of any truck or car. The pro tip is to never sign until you’ve read the mechanic’s report carefully.
