|
Enjoy all the benefits of AAA!Portions of this site are for AAA members only. Access to member-only content requires you to be a registered online user.
|
Office Locations | FAQ | 1-800-562-2582 |
Getting a Good Deal
Getting the right car at the right price isn't an impossible dream. With research, patience, and persistence, you can get the deal you want. Before you begin your search, know the exact model and options you want, or, at the minimum, narrow your search to one category, such as sport-utility vehicle, pickup truck, or sedan.
Alternatives to Haggling
If you hate to negotiate the price of a new car, consider a non-traditional approach:
One-Price Dealers
Recognizing that some consumers don't want to haggle, about 2,000 U.S. auto dealerships have adopted "one-price" selling. They discount the manufacturer's list price and post the new price; that's it - they don't negotiate. Because of this practice, they're sometimes called "no-dicker-sticker" dealers.
Buying Services
If you specify the make, model, and equipment, a buying service or professional shopper will acquire a car for you. These services may negotiate on your behalf, buy the car at a contracted discount, or give you a certificate to exchange at a dealer. Some services require you to pay a fee; others get a commission from the dealer.
Pricing
The manufacturer's suggested retail price (MSRP) is the "sticker price" posted on the window. It includes a markup of 7 - 20 percent off the base price of the car. Sticker prices for factory-installed options include markups as great as 25 percent; dealer-installed options may carry even higher markups.
Carmakers usually group some options in "packages" and price them less than if you bought each item separately. Although the option package discount is often substantial, it still includes a sizable dealer profit; furthermore, you might be forced to get equipment you don't want or need as part of the package. Some dealers even add a second sticker to the car, specifying extras such as rustproofing, which add on dealer profit.
Smart shoppers never settle for the sticker price (except at a one-price dealer); they research the invoice price - what the dealer paid for the car and the options. You can find the invoice price by consulting a pricing guide or by using a pricing services.
Next, check Kelly Blue Book or NADA Appraisal Guide to estimate the value of your trade-in. This is where you may find some neogitating room with a "no dicker sticker" dealer.
Negotiating
When you know the invoice price of the car and its options, the value of your trade-in, and the best available financing rates, you're ready to shop.
Visit More Than One Dealer
Shop around for the best deal, and consider a "twin." Consult our list of "Automotive Twins" to see whether the car you want is offered under another name. You may find better safety equipment, a better combination of standard equipment or available options and - more importantly - a better deal.
Use the Invoice Price, Not the Sticker, as the Basis for Negotiating
You can expect to add a reasonable dealer profit to the invoice price. How much is "reasonable?" That depends on the demand for the car and the local market. The more popular the car, the greater the demand - and the higher the price a dealer can command.
Focus on One Item at a Time:
Salespeople sometimes jump back and forth from trade-in to financing to price until the whole negotiation blurs in your mind. Take your time, consider each part of the deal separately and know precisely how the figures compare with your research.
Know the Power of "No"
A salesperson never wants a serious prospect to walk out without buying a car, because that prospect may not come back. The word "no" is your strongest negotiating tool.
Keep Your Cool
In making any deal, the party who best controls his or her emotions usually controls the negotiation. You may be left waiting for long periods while the salesperson gets the sales manager to approve a proposed deal. Recognize the tactic for what it is: a way to make you anxious. Whenever you feel frustrated, pressured or angry, take a walk and regain your composure.
Double Check the Contract Before You Sign
Be sure the figures are the ones you've agreed to. Make sure there are no blanks in the contract. Check the vehicle identification number to be sure the car you want is the one specified on the contract. Before you take delivery, take time to inspect the vehicle carefully in good light to be sure the color and equipment are what you ordered.
