Tips and tricks for buying your next car at a car dealer

Whether you’re in the market for a $120,000 new sports car or a $2,500 new-to-you one, all consumers want a “good deal.” Almost every dealership will spend thousands of dollars on marketing to emphasize this fact to you, all before you hit the road. It’s up to you, the informed consumer, to play to your strengths, minimize your weaknesses, and do the awkward dance to get behind the wheel of your dream vehicle at the best possible price. Following some or all of these tips will give you the best chance of doing just that.

1. There is always a “Big Sale and Promotion”, but the biggest ones are at the end of the month.

If you get nothing else from this article, get this: Do NOT go shopping for a car outside of the last 5 days of the month. Manufacturers create monthly incentives to attract customers to dealership lots. Normally, these incentives last until the end of the month. However, all dealerships (from the very beginning of the dealership to the newest seller) try to sell as many cars as possible. As a result, they will be much more flexible and eager to win your business on the 27th, as opposed to the 7th.

2. There is much more markup on used cars than new cars.

Don’t expect the dealer to drop much off the advertised price on a new vehicle! What would you think is the average profit margin on a new vehicle? $3,000 or maybe $5,000? Let’s test negative $256.00. I’m not kidding. Out of a group of 80 franchised dealers, they lose an average of $256.00 gross when selling this specific model. When looking at used cars, pay attention to price trends. Do you see any common endings, like $XX,995 or $XX,986? Ask the seller in very general terms how long some of these vehicles have been on the lot and you’ll be surprised what he can learn. Most dealers shoot to “turn around” or sell used vehicles within 45 or 60 days. If the vehicle is older than that, it has a little more leverage.

3. Be polite, seriously!

Everyone has dealership horror stories they love to tell when they find out their neighbor or co-worker is buying a new vehicle. Here’s a great tip: If you don’t like the way you’re treated at a dealership, get back in your car and drive away! There are good dealers in your area that have good salespeople. The best part about this: You can get the same price on a new vehicle, since there is very little markup. However, please be courteous. Because sellers are people too. They feel hurt and are simply trying to make a living. If you treat them with the same amount of respect you expect to receive, you’ll make the entire buying process better for everyone involved.

Buying a vehicle doesn’t have to be a scary experience. When you start this process next time, keep these key points in mind. They are guaranteed to help you as you go through this process. Remember, an informed consumer is a powerful consumer. Use all the tools at your disposal before you go to the dealer, and be courteous once you get there. Above all, enjoy the car buying process and congratulations on the purchase of your new vehicle!