Hey there, savvy shopper! 🚗 If you’ve ever walked into a car dealership with the hopes of driving out with a shiny new ride, you know the dance. The back-and-forth, the “let me talk to my manager” routine, and the seemingly endless paperwork. But what if I told you there were some secrets that dealerships would rather you didn’t know? Buckle up as we’re talking to a great guy, Robert Anderson from DriverMoola, and we’re diving into the top six secrets that could just give you the upper hand next time you’re in the market for a new set of wheels.
The Best Time to Buy Isn’t Always End-of-Month:
You’ve probably heard the age-old advice: “Buy a car at the end of the month; they’ll be desperate to make sales!” While there’s some truth to this, it’s not the full picture. Dealerships often have quarterly targets too. So, consider shopping at the end of March, June, September, or December. You might just snag a better deal when they’re trying to hit those three-month goals.
The Sticker Price? It’s Just a Suggestion:
Ever see that MSRP (Manufacturer’s Suggested Retail Price) and think that’s set in stone? Think again! Dealerships have a fair amount of wiggle room. Don’t be afraid to negotiate. And if you’re not the haggling type, consider bringing along a friend who loves the thrill of the chase. Remember, the worst they can say is no!
Pre-Financing Can Be Your Best Friend:
Dealerships love to offer you financing. Why? Because they often get a kickback from the finance companies. Before you step foot on the lot, check with your bank or credit union for a pre-approved loan. Not only can this give you a better interest rate, but it also gives you more negotiating power. Walk in with confidence, knowing you’ve got your finances sorted!
The Upsell Upswing:
So, you’ve negotiated a fantastic price for your new car. Congrats! But wait, now they’re offering extended warranties, paint protection, and fancy floor mats. While some of these might be worth it, many are just high-margin add-ons for the dealership. Do your research ahead of time and decide what’s truly valuable for you.
Trade-Ins Aren’t Always a Win:
Trading in your old car seems convenient, right? But here’s the thing: you might not be getting the best bang for your buck. Dealerships need to make a profit on your trade-in, which means they’ll offer you less than it’s worth. Consider selling your old car privately. It might take a bit more effort, but your wallet will thank you!
The “Four Square Method” – A Classic Dealership Tactic:
Have you ever been presented with a piece of paper divided into four squares while discussing prices? This is a classic sales tactic called the “Four Square Method.” Here’s how it works:
Square 1: The price of the car you’re buying.
Square 2: The down payment you’re willing to make.
Square 3: The monthly payment you’re comfortable with.
Square 4: The value of your trade-in.
Salespeople use this method to juggle numbers between the squares, making it seem like you’re getting a great deal. For instance, they might show a higher value for your trade-in but simultaneously increase the price of the car you’re buying. Or they might adjust the monthly payments but extend the loan term, costing you more in the long run.
Pro Tip: Focus on negotiating the price of the car (Square 1) before discussing other factors. Once you’ve settled on a fair price, then move on to the other squares. This way, you ensure each aspect of the deal is favorable to you.
Wrapping Up:
Buying a new car should be exciting, not stressful. By keeping these secrets in mind, you’ll be better equipped to navigate the world of dealerships and drive away with a deal that leaves both you and your bank account smiling. Happy car hunting, and may the road rise up to meet you!
