There are tricks to buying a new car or used car at a reasonable price. Dealerships and private sellers rarely mark the car’s price at it's actual worth.
Instead, they mark the price up so that they can clear a good profit for themselves,
or to be able to offer their salesmen better incentives to sell the cars for them.
Whatever the reason, almost all dealerships can be talked down on their prices, if you know how to haggle properly. Being a good negotiator doesn’t have to be difficult. At some time or other everyone has to negotiate with someone if they want to get a good deal on a purchase.
When negotiating with a car dealer, you should know that they are very practiced in the art already. You need to know how to get through their “car speak" in order to be successful.
You Must Watch out for ‘Dealer Scams’
They might say “I hate to tell you this but we have another offer on the table from a man that is willing to pay much more money than this."
Tell them you don’t want to take another persons deal and walk away!
When you go into a dealership, you need to know all of the new car pricing and costs or second hand car pricing, of the car that you are looking into buying. For new cars you should know the dealer’s cost and the manufacturer’s cost.
So many people get scammed after they have already closed the deal. They get you on the extras and the warranties at that point.
The extras are things like scotch guarding, rust proofing, etc. It seems pretty straight forward but you would be surprised at how many people get taken on these tricks
.
The trickiest closing scam is the extended warranty, because the language used is so confusing. This is not the factory warranty for the car.
Do not let them confuse you. Make sure that you completely understand what is on offer and the cost. Then decide if it is worth it for you.
DO NOT use dealer finance.
A good car loan company should be able to give you an instant free quote. Many of these companies will provide between 90% to 100% of the purchase value of the car. Typically the car loan is repaid over a period of three to eight years, five being the most popular.
DO NOT let the Dealer provide your Insurance.
Use a specialist car insurance broker – there are several websites where you can compare car insurance deals and brokers can do this comparison for you quicker and taking into account more car insurance providers than you can by yourself.
Depending on where you're located, it may be possible for you to save a substantial amount of money by buying a car online.
As long as you choose a reputable source, it's possible to save money this way.
Remember, when you buy a car online you cannot test out the car you're interested in, so only buy online once you've driven the car (try it out at a dealership first).
