Tips and tricks for negotiating with car dealers
Tips for negotiating with car dealers
Car dealers are well known across the world for their negotiating tactics. Although you desperately want a new car, haggling can add unwanted pressure to the task of finding the right deal for you.
Did you know that over 65% of Australians dread the thought of having to negotiate a new car? That’s why it’s always easiest to leave it to the experts.
Positive Lending Solutions have years of experience working in the car loan industry and helping people to find the right deal for them. Our expert team of brokers can speak to car dealers on your behalf to help navigate the terms and conditions they may be offering you.
How to negotiate with car dealers
1. Visit different dealers
You can search for hours online but often the best way to find the right car deal for you will be by physically visiting car dealers face to face. Never go with the first dealer you visit as you won’t have a clear idea of what other offers might be out there and what prices you should be expecting to pay.
Aim to visit at least 3 different dealers. By the third one, you’ll have a clear idea of exactly what you’re after and you’ll also be familiar with various car negotiation tactics.
2. Leverage on other offers
Once you’ve seen a few dealers, you’ll have offers to leverage against each other. Almost all dealers will have room to negotiate and often don’t expect you to take their first offer.
By having other offers, it’s easier for you to compare these and come up with a price that the dealers should beat if they want you to purchase from them. If you’re unsure on what the best deal for you might be, you can always get in touch with us for some helpful advice.
3. Get Pre-Approval
Getting pre-approval on your car loan can mean that you are better able to accurately discuss how much you have to spend on your new car. We have made sure that pre-Approval is quick and easy to do online with us, and means that you won’t feel overwhelmed or unsure when asked questions by your car dealer.
4. Go close to home
If you’ve got a dealership close to where you live, you could use your home address as a car negotiation tactic. Some dealers are actually rewarded by manufacturers for selling cars to customers living within the Prime Market Area.
Don’t feel that you have to remain loyal to this dealership – if you find another one you trust more or who offer cheaper prices, use them for future needs such as car service appointments.
5. Check the weather forecast
Yes, it’s true – the weather really can affect your ability to negotiate with car dealers. Far fewer people visit their car dealer on a day when it’s pouring with rain or freezing cold. Use bad weather days to your advantage as it’s likely your dealer will be having a quiet day and may offer you a slightly better price.
6. Timing is key
This is really important as there are crucial times in the month and in the year when car dealers are trying to hit their financial targets. Car dealers receive huge financial rewards if they hit their sales targets so they’ll be keen to do so – using you to help them.
Generally, you should aim for 10-12 days before the end of the month if you’re looking for a good deal and often the end of the financial year means there are some great prices to be had if you can negotiate a new car then. Remember though that some Australian dealers work with the financial year of their provider which can finish at a different time to ours.
7. Avoid added extras
When you’re in the midst of car negotiation tactics, you might find yourself being sold all sorts of added extras, which you’re unsure of whether you actually need for your car.
Be clear from the start that you’re only willing to bargain and negotiate on the price of the car itself. If you need to, you can always go back and negotiate separately for any extras that you think you actually may want.
8. Need more time? Take it
Remember there’s no rush. You should never feel pressured with car negotiation tactics that go towards the extreme. Put things back into perspective if you start to feel panicked, and always ask us if you’re in need of expert advice.
Walking away from a dealership can be a great tactic in itself. Don’t be surprised if you get a follow up phone call regardless and possibly end up with a better offer than was first on the table.
Ask for help
Remember that knowledge is power. The more you understand, and the more expert help you receive, the better the position you’re in to negotiate and bargain for a new car. Let us work with you to get the best offer from car dealers that you can and to set you on a positive journey to owning your car.