Talking About Cars

The smart thing you can do to get the best deal on a new car is research and more research. If you’re armed with knowledge before you walk in the dealership you’ll be more resistant to high-pressure sales tactics, and you may be able to resist a skilled salesperson’s subtle tactics, too. As solicitous and helpful as a salesperson can seem, they’re object is not really to help you buy the car you want, but to sell you the car they want to sell you. Knowing what you want is the first step to getting a good deal on a new car.
Don’t even walk around the dealership and give a salesperson a chance to start making suggestions until you know the car you want to buy. It’s a good idea to have a few options in case the car you want isn’t available or the price is a bit out of reach, but even on these know exactly what you want and what you’re wiling to compromise on.
Know your budget before you look for a new car loan, too. Start with your bank or credit union, consider borrowing against any investments or life insurance policies you may have (as those often give the best rates) and then finally look at the dealership financing after you’ve gotten quotes and numbers from other people.
When you’re at the dealership, negotiate the price of the car before you’ll discuss financing. Also, don’t talk about a trade-in as you’re negotiating. The crafty salesperson will calculate in his or her head and raise the price of the car according to the amount you can get on that trade-in. By making sure of the car’s price first you can actually get something out of your old car.
If your asked point blank if you have a trade-in and you don’t want to say no only to turn around and mention the trade-in later, then you should start out as if you might purchase it for a child or as a gift where there’s not a trade-in, and then after the price is quoted, “decide” you might want one for yourself and mention your trade-in vehicle then when it’s too late for the salesperson to up the price.
Chances are pretty good that if you didn’t use your car as a trade-in and sold it privately you’d make more money from it, so the trade-in may not be an issue anyway. But if you want to consider it, find out the blue book value of your vehicle and look at similar vehicles that are for sale so you’ll know if you’re getting a good trade-in value or if you’d better off selling it privately.
Also, while it’s good to have your budget firmly in your mind, don’t ever tell the salesperson that you’re only willing to pay X dollars per month. You’ve just given the salesperson far too much information and leverage and have just about guaranteed that you’ll end up paying much more than you need to on your new car loan.