How do you get your best chance at buying the car of your choice for a good price? Did you know that haggling for the price tag of the car you intend to buy actually makes you pay more than you should?
Most of car enthusiasts must understand that the discounts that car dealers give you the moment you decide to pay for the down payment is actually charged back to you through the mortgage loan that you applied for. Although you won’t really feel it as the need to pay the monthly mortgage of your car will overwhelm you, the add-on cost is still there.
How do you optimize your chances of paying for the car that you want for the price that you want without being tricked? Here are a few tips to help out:
Tip 1: Look for your own financing firm.
Financing firms that are tied up with the car dealership often come with x deals with the dealership. If you can afford to buy the car in cash, that would be so much better. But if you don’t, all you need is to look for your own financing firm.
Check your credit rating first before you visit any of these financing firms. When you approach them as an individual, they might just give you a better and hopefully lower interest rate. At the very least, shopping for the right financing firm can give you an idea of the rates you would qualify for.
Tip 2: Don’t be afraid to leave and don't look back.
It may be a bit uncomfortable and embarrassing to walk away from the car dealership after you have expressed your intent to buy the vehicle, but you should still leave and not look back.
You shouldn’t let yourself suffer the high interest fees monthly just so you won’t get embarrassed. There is a pretty good chance that somebody from the dealership will stop you and that is when real negotiations actually begin.
Tip 3: Ask and you shall get answers.
How much is the total cost of the vehicle? How much is the interest rate? Is it possible to pay for the car in cash after three months minus the interest rate? All these are questions you shouldn’t be afraid of asking before settling to buy a new car.
The answers that you get will help you decide whether that vehicle is something you could afford or not. Also, such answers will allow you to think twice of whether it is a good investment or it will only drown you in debt.
Negotiating about the car that you like is not just about haggling. It is about asking for the right price and getting it at your own terms.