Negotiating Tips for Buying a New Car

If you need a new car you can earn a tax deduction for purchasing one IRS website Once you figure out the specific car you would like to purchase here are some negotiating tips to help you find the best deal.

Buy Off the Lot When you purchase a new car you should purchase one which is already in their parking lot (in other words don’t order it) since the dealers want to sell these cars to have space for the new cars being shipped to them which gives you more negotiating room.

Buy in Sept-Dec You will also be able to negotiate more for a car which is a 2009 in September to December since the dealers are already receiving the next year 2010 cars. In December dealers are also trying to meet their sales quotas.

Research Number of Cars Per Dealership You can go to the main car manufacturer’s website (i.e. Ford) and then look up the individual dealers to find the number of cars currently available at each location. Narrow down the dealers closest to where you live who also have the most cars you are interested in purchasing (2-3 dealers).

Call the Manager Now that you have selected the dealers who have the car you are interested in purchasing in-stock, call the managers at those locations and start the negotiation process.

Ask For Invoice Price When you are speaking to the manager ask for a copy of the invoice price or the price the dealer paid for the car. This should include all the car features along with the sticker or asking price. Once you have the invoice price ask the dealer how low they are willing to go below the invoice price.

Call about Rebates The dealer does not have to inform you about current rebates offered by the car manufacturer. Call the car manufacturer and ask about any rebates offered for the car you plan on purchasing.

Ask for Extras Often the dealers are able to give you extras which are little cost to them but of value to you. Some suggested extras to ask for are free oil changes (for 1-2 years), free car detail, CD player, DVD player or GPS system.

Stand Firm on not adding Warranty After you have negotiated your price, the dealership will try to sell you extras such as extended warranty since they will profit from this sale. Extended warranties are unnecessary and expensive.

Purchase with Bank Loan or Cash Ideally you should purchase the car with cash. If you need to take out a load go through a bank since you will receive a lower interest rate compared to the interest rates at dealers. Before getting a loan compare interest rates at multiple banks.

Get it in Writing Before you pay for the car make sure everything you discussed and negotiated is clearly stated in the contract. You can ask for a faxed copy of the contract before you go to the dealer with your money.