Monday, November 05, 2012

How To Know If You’re Getting a Good Deal on a Car

One of the worst parts of car buying is trying to get a good deal on a car. The car dealer is trying to make as much money as possible, while at the same time you are trying to get the best car deals possible as well. As a result, it can be really difficult to know if you’re getting a good deal on a car. So here are some things that you can do to make sure that you get the best new car deals possible.

Do Your Homework

The first thing you can do is your homework on the car. Many sites like Kelly Blue Book and Edmunds will have the prices that you can expect to pay for cars in various conditions. Also, you can see how prices vary by market, and features on the vehicle.

If you’re buying a new car, it is important to find the invoice price for the car. This is essentially the price the dealer will pay for the vehicle. You should also look for dealer incentives that the car manufacturer is offering. Many companies, like Honda, will pay the dealers $X amount per vehicle sold, so even if the dealer has an invoice price, they make money in other ways.

Ask The Dealer

If you’re at the point of negotiation on the car, you can always ask the dealer for their bottom line price. The goal of negotiation should always be win-win: meaning the dealer makes a fair profit and you get a good deal. A smart dealer will be willing to pull out the actual invoice for the car and show you in good faith.

Then, you can remember if there are any dealer incentives, and know what the dealer’s true bottom line price for the car really is.

Don’t Be Afraid to Walk Away

Finally, if the dealer really won’t budge, or won’t even be honest about the price of the car, don’t be afraid to walk away. There are thousands of every model car made each year, so you can always find another one at a different dealership.

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