7 Tips to Smash The Car Dealer
No one likes the car buying process, it takes a lot of time searching for the car you like, then you have to search to fins a finance deal, then you have to go and negotiate with car dealers who are systematically incentivised to rip you off. Well the good news is your not alone. Here at Loanseeker we have two of the three steps sorted for you. We offer a great selection of car loan products from our panel of over 40 lenders including the big 4 banks. Also we offer an industry leading car buying service using our group buying power we can save you 1000’s.
Tip #1 Buy at the end of the month
- Dealers have to report to the car manufacturers at the end of every month with their sales figures.
- If they meet the predetermined sales quota they get large financial bonuses.
- If they don’t meet these target they are left out in the cold for the next month
- This is why dealers are often more likely to give you a better deal at the end of the month if they need to meet their quota.
Tip #2 Buy cars the dealer has in stock
- Dealers are always more willing to negotiate on cars they have in stock in their yard or holding yard
- These cars cost the deal money as they are owned by the dealer and the dealer has to pay interest on the loan they used to buy their stock
- The cars in stock also depreciate and have large holding costs as they need to be cleaned and maintained
- This means that a dealer will always be more flexible on negotiating a car they have in stock rather than one they have to order in.
Tip #3 How to negotiate
- Always get the dealer to say their best cash price first.
- Then you want to say a price around 20% – 30% lower. Don’t be shy there is no such thing as a rude offer. You can always go up.
- Always offer in round numbers. If the dealers say $29 990 you say $24000.
- Don’t be sacred to stick to your guns. You have the money you have the power. Cars are a commodity.
Tip # 4 Know your spending limit and stick to it
- Always have a price in mind for the car you want to buy and stick to it. This means doing your research before you start negotiating
- Make the final decision somebody else’. Make sure that somebody else is not there. This means that you can’t pay any more because your husband or wife will not be happy and there is no way to contact them so the dealer will have to just negotiate around your offered price.
- Don’t be scared to walk away. Any self respecting dealer won’t let you leave the yard to check with your husband or wife. They will want to clise the deal there and then.
Tip #5 Watch out for these common dealer Lies and Half Truths
- I know its hard to believe but the car dealers often tell lies and half truths.
- “The price is for today only” is a common one. The price will be the same tomorrow and the next day and will probably be even cheaper the day after.
- “There is another customer rushing back with a deposit to buy this car” There is no such person. Don’t feel pressured.
- “We have great in house finance and insurance deals” both are a lie. Dealers are well know for having higher priced insurance and finance deals
Tip #6 Just say no to the after market add-ons you don’t need.
- Most of the after market add ons the car dealers try and sell you are a joke. The dealers make a lot of money off these products that’s why they love pushing them.
- Rust protection and paint protection are a rip off and not worth it
- fabric protection is a joke
- There is a lot of mark up in the their after market add ons so if there is something that you particularly want make sure you bargain hard they have room to play.
Tip #7 In house finance and 0% finance is a Scham
- The dealers advertise 0% finance rates alot. Truth is these deals end up costing you alot more.
- They are often very inflexible and you will pay more for the car to make up for the interest that you would have paid otherwise.
- Dealers will often hide fees and charges in their monthly payment figure.
- The best way to buy a car is to get pre-appoved finance from a bank or credit union. Either going direct to your bank or use a trusted broker, both will get you a great deal and it will almost certainly be better than the card yard finance. Then go in to the dealer and negotiate hard on the car.
Thats it for the 7 steps to smash the car dealer. Have more questions about our car loans, get in touch with us via the contact page.