So you’ve decided to take the plunge and buy that new car that you’ve been dreaming of for months or even years?
But now that the decision has been made, how do you go about making sure you’re getting a great deal?
The first thing that you need to remember is that this isn’t an emotional transaction.
If you’re going to get caught up in the excitement of it all, chances are you’re going to end up paying far more than you need to. Remember there’s no time pressure on you to buy a car and there’s not a queue of people ready to buy the one car you have your eye on.
Take your time and do your homework and you’ll be rewarded with a great car and the best deal possible.
Here are a few tips to make sure you are getting a great deal when buying your next car?
Shop at the end of the month
Car dealers like most salesman, have to meet certain targets each month, quarter and year. If you walk into the dealer at the start of the month or the start of the year, then chances are there is no immediate incentive to get them give you a good deal.
However, if you head into the car dealership, towards the end of the month, when the salesmen are hungry to make sales, then chances are you’re going to have far more wiggle room to negotiate a better deal. If the salesman has had a particularly poor month, then they might very well do the negotiating for you.
Know what you want
If you know what you want before the process begins, you’re already well ahead of the pack. Don’t walk into a car dealership and just browse or take a random car for a test drive.
Decide early which make and model you want, then you have the ability to look around compare different dealers.
Remember, at the end of the day a car is just a commodity. Meaning that no one particular new car is better than any other. So ultimately it makes very little difference which dealer you buy a car from.
Choose at least three dealers and go and see which one offers the best price.
Forget about the extras
Guess what – you don’t need rust protection, extended warranties, tinted windows or whatever the dealer suggests. These are simply just value adds to the dealer and you’re going to be paying well over the market rate. If you do in fact want to get your windows tinted, look to use an aftermarket provider and you’ll likely save yourself some money.
What’s the true drive away price?
These days ever car ad tells us that the price is ‘drive away, nothing more to pay’. In reality, that means very different things at different dealerships.
In many instances, if your car is in stock then you are likely to get your car significantly cheaper as there are no freight costs to get the car to the dealer.
Be sure to compare three different dealers on price and include any extra costs as you can quite possibly save yourself a few thousand dollars.
Arrange your own finance
Again you’re going to find you’ll be better off if you arrange finance with a third party and don’t use a dealer.
Anything a dealer is offering you, they are effectively just on-selling from another provider. If you go straight to the source, in this case, the lender, you’ll often be able to save some money.
Check the compliance plates
If a car is built in 2016 and the compliance plates say it is registered for sale in 2017 – that car is a 2016 model.
That’s OK – but just realise you’re buying an older model than you might be otherwise and that might need to be priced accordingly.
Get your own insurance
Just like all extras, the dealer is going to offer you, insurance is another one that you’re far better off sourcing on your own.
In some cases, you might hear about ‘Holden Insurance’ or a different make of car. The reality is that the insurance you’re getting is exactly the same and ‘Holden Insurance’, is exactly the same as you would get elsewhere – except you’re paying a premium for it.
Remember anything the dealer is selling, they are making a profit on. Insurance is no different.
So before walking into the dealership, do your homework on insurance and find a provider that has all the cover that you need so you can quickly and easily insure your car yourself and save yourself thousands.
And just realise, that every single dealer tells new buyers about the time they saw a customer with their brand new car get into an accident minutes after leaving the showroom floor.
Don’t get forced into that trap – be prepared and take out your own cover.