New Auto Buying: Negotiating with a New Auto Dealer
The thought of visiting and negotiating with a auto dealer is a prospect that greatly worries many people, but if you find a reputable dealer and are prepared, the process can be quite simple.
We’ve all heard stories and seen the stereotypical representations of bad, unethical dealers. Spending a significant amount of money on a new auto is stressful enough for people without having to worry about whether or not the dealer is really being upfront with them about the value of the auto. All it takes to be prepared and a little less anxious during the process of buying a new auto, is to do your research, be organized, and have a list of the right auto buying questions.
There are many things that you can plan to put on a list of auto buying questions for your potential dealer, but some of the most important questions relate to negotiating pricing on the auto that you’re considering, as well as auto buying questions about trade in values and financing incentives.
If you have followed our advice in other areas of AutoBuying101.com, you will have received an initial price quote from the dealer before you visit the lot, and you have set up a appointment to talk specifically with the Internet or Fleet Manager. If you have pulled some current market pricing from sites like TrueCar.com, Edmunds.com, and Kelley Blue Book; you should already have a good idea of new auto market pricing in your area. First you should ask what, if any, incentives are available on the new auto you are considering. These incentives often include cash back offers that can be used to lower the principle price of the auto, or financing incentives that mean you will pay back the price of the auto at lower interest rate. Use these references to have an honest discussion with your dealer on how much you are willing to pay. Once you agree on a price, you may need to discuss financing.
Hopefully you have also gotten pre-approved for financing before you headed to the dealership, but you should ask a new auto dealer about the type of financing the dealership is willing to offer someone in your financial position. If you couldn’t get pre-approved for auto financing or you have poor credit, you may be limited on which autos you can buy and how much negotiation room there is on pricing.
If you currently own a vehicle, and are interested in including it as a trade in when you are buying a new auto, then it’s important to leave this discussion until after you have discussed the pricing on your new auto. No use in negotiating on the trade, if you are not interested in purchasing a auto from this dealer. Before you visited the lot, you should have your trade-in and private party values from sites like Kelley Blue Book, Edmunds, and NADAGuides; so you can decide if you want to trade-in your vehicle or sell it private party. If possible, try and sell it private party to get more money for it.
By remembering to do the appropriate research before even setting foot on the lot of a auto dealership, you will make it much less confusing when buying a new auto.