So you are ready to get rid of your old clunker and buy that brand spanking new 2017 Hyundai. Shoutout to me me in 2018.
Buying a new car can be nerve wracking. The car salesmen are out to rip you off and up-sell you on things you do not need. You’ve heard the stories, and you don’t want to be a sucker. The dealership knows you want a car when you step into their showroom. They will spend all day grinding you down until you finally give in and pay MSRP.
But that doesn’t have to be you. With the internet and Long Beach Magazine, you can swing the balance of power to your side. Here are the steps to get the best price for the car you want before even stepping foot into a dealership.
1) Find the make and model you want. The more specific you can get, the better.
2) Go to Truecar.com to see what other people paid for the car in your area.
Do not give Truecar your email because they will spam you. Right before they ask you for your email, you can see a range of prices people have paid from Excellent Price to High Price. Obviously, you are going for the excellent price.
3) Get your own financing for the car.
Go to your bank and get pre-approved for a car loan. Car loans are typically 5 years and your bank will provide you the interest rate and your monthly payments. Sometimes, dealerships will try to trick you into a lower payment but longer term on a higher rate which will cost you hundreds to thousands of dollars more. Be prepared and get your own financing! However, there are times when the dealership can offer you a better rate.
4) Email ten dealerships about your interest in buying a car.
This is the fun part. Find the 10 closest dealership from your home and send them all the same email telling them you are looking to buy a new car. Tell them you are speaking with other dealerships as well which will put the pressure on them to make a sale.
It is extremely important that you ask them for the OUT THE DOOR PRICE after all taxes and fees. You are not interested in doing any more negotiating or being surprised with a different amount when you walk in.
After getting responses from all 10 dealerships, you will only have to continue communication with the 2 dealerships that provided you with the lowest price. If dealership A offered you a better price than dealership B, email dealership B and tell them you have a better offer without giving out the quoted price. The last thing you want is to go back and forth between two dealerships over a hundred bucks. If B offers you a better deal, you send the same email to A until you get the lowest price possible. Lock down the price and go to the dealership to buy your car.
5) Buy your car or walk away
This final step should usually be pretty simple. They will have a salesmen try to sell you extended warranties and service packages. Please do your research on these services before you go to the dealership. I personally opted out of everything.
If they try to bait and switch you or you hear something you don’t like, you can always walk away. Remember, you hold the cash so you hold the power.
Before you go, here’s a sample email for you to write to the dealerships
Dear Saleman,
I am interested in purchasing a new YEAR MAKE MODEL COLOR TRIM. Please give me your best Out the Door price. I have already secured my own financing and am in communication with other dealerships.
There you go. Enjoy your new car. Not all heroes wear capes. Some drive an economy midsize SUV.
