Are you looking for a used car? Here are Tips for Dealing With Used Car Dealers
Tips for Dealing With Used Car Dealers
The car buying process can seem overwhelming, but it doesn’t have to be. You can make it easier by understanding your requirements, setting a budget, researching, taking test drives, and negotiating effectively.
Negotiate your car’s purchase price over its monthly payments whenever possible. This will give you more leverage in the negotiation.
Do Your Research
Before stepping into a dealership, ensure you’re armed with the facts. Research the car you want (including the price) using online resources. You should also check out a vehicle history report. Check whether the previous owner stuffed receipts in the service book or if the stereo is programmed to radio. These details can tell you much about the vehicle’s history, including whether the dealer has handled safety recalls.
It would help to familiarize yourself with add-ons, products, and services the dealer may try to sell you. You can avoid them by shopping with an independent insurance agent who’ll help you save money on auto insurance.
Get Pre-Approved for Financing
Getting pre-approved for your loan before you go to the dealer will level the playing field when dealing with Albion used car dealers. You’ll know how much you can spend and your estimated interest rate ahead of time.
Even if a dealership offers 0% financing, comparing it against the lender’s rate you got pre-approval for is essential. You can also ask the dealer to beat your interest rate, which they may be able to do.
It’s also essential to avoid paying for unnecessary extras at the dealership, such as credit insurance or gap coverage. These products can be purchased outside of the dealership at much lower prices. If the dealer does try to sell these items, walk away.
If you walk into the dealership with a clear idea of what the car is worth, you can make an opening offer well below the dealer’s asking price. This lets the salesperson know you’re an informed buyer and will have them scrambling to justify any price drop.
It’s also helpful to have documentation with you, such as the invoice price and the vehicle’s market value, to keep the negotiation process on track. You can show these documents to the dealer to prove that you have researched the car’s actual cost and value.
It’s important to remember that any deal is only final once you sign the final paperwork and drive away in your new, used car. Even if the salesperson tries to “save” you by giving you a few extra days to decide, never rush this step!
Take Test Drives
Before even getting to the dealership, prospective car buyers should arm themselves with information. Researching a vehicle’s specific make, model, and year can help drivers level the playing field with salespeople and ask informed questions during negotiations.
During a test drive, drivers should listen to the engine as it accelerates, hear how it drives on bumps and over speedbumps, check the condition of the brakes, and observe whether or not any odd smells are coming from the car. Bringing a friend during a test drive can keep you sane and focused, and bringing along cargo like children’s car seats will allow drivers to ensure that they can comfortably fit everyone using the vehicle regularly.
Drivers should also bring photocopies of their licenses and proof of insurance when dealing with a used car dealer. The dealer should have fleet insurance that will typically cover any accidents during a test drive, but having copies of these documents can help you get out of the dealership as quickly as possible.
Drive It Home
When you’re ready to buy, be transparent with your dealer about the actual car price and any tacked-on costs (like vehicle preparation fees or gap insurance). Ask for these quotes in writing.
Knowing the dealer’s process and tactics helps level the playing field and empowers buyers to negotiate a fair price for their new, used car. Bringing extra items report to the dealership can also help buyers get a good deal and save money by avoiding unnecessary add-ons.
Keep in mind that dealers often have monthly sales quotas to meet. You can negotiate a better deal by shopping near the end of the month or on weekdays when fewer people are in the showroom. The goal is to make a well-informed purchase and drive off the lot happy with your new-to-you ride!