We don't just talk cars ... we teach how to buy them.
How To Get The Best Price
On A New Car
People love cars ... but hate buying them.
This is sooooo true. I can't tell you how often people tell me they just can't stand the whole process of buying a new car. The distrust. The haggling. The hours at the dealership. The never-knowing-for-sure if you've paid a fair price or have been taken advantage of.
Well, no more. There's a much better way to save both stress and lots of money.
Here's Why It Works So Well And How To Do It
The carbuying process can be a lot easier than you think. You see, you can save thousands of dollars on your next new car purchase with just a few clicks on your computer. And from the comfort and safety of your own home or workplace.
This means no salesman to face off with hour after hour, no more game playing, no waiting for a counter offer from "the manager", no flim-flaming the numbers so that only a math genius can keep up, no more mind-numbing, stomach-wrenching carbuying agony.
Just the lowest prices submitted right to your email account, pronto.
In Fact, It's You Who'll Be Giving The Dealer A Headache
How's that for a switch? Nice, huh?
Well, bear with me for a moment while I explain this a little bit and then I'll give you the specifics on how to do this the most effective way for yourself.
The key to car savings is really the internet. Smart carbuyers can now get the "Internet Departments" at multiple car dealerships to compete against each other for the privilege of selling you a car. And when dealers are forced to compete in head-to-head price comparisons, car prices plummet.
Okay, that's good so far because you're not haggling at all. Instead, it's the dealers who are fighting each other ... all while you're sitting at home watching TV, or surfing the net, or at work getting stuff done. How does this happen?
Easy. You send out a single price request (I'll show you the best place to do this shortly) for the car or cars of your choice. This is then automatically routed to the Internet Departments of all the appropriate dealerships within selling distance of you. They'll then send you a quote via email, almost always within 24 hours ... sometimes just a couple of hours later.
For example, if you are curious about the price of a new Honda Accord and would consider buying one if the deal was crazy enough, your request will go to all the competing Honda dealers in your area who would like to sell it to you. You would then compare their quotes before even setting foot in a dealership, negotiate still more with them online if you choose, buy from the lowest bidder, or walk away from the whole thing as a learning experience.
It's also notable that your requests don't go to a salesperson. As I said, they go to the Internet Department. The job of this department is to get cars off the lot as quickly as possible. Their job is to reduce the overall carrying costs of the dealership for unsold cars. They also do not pay commissions to a salesperson on these sales.
And because they've received your request via an open, dealer-wide quote system (free and no obligation to you, by the way ... more on this in a moment), they know that other dealers will be trying to undersell them as well.
So there's a very strong incentive for them to give you their very best price from the get go, because they know if they don't, one of their competitors will. Getting quotes at invoice price or below is not at all unusual.
They figure they'll make up for the cheap sale by maybe getting your warranty and maintenance work over the years, perhaps by getting your loan, maybe sell you an extended warranty or get another family member or referral to buy down the road. The worst case is that they at least get a vehicle off the lot that they're paying finance charges for.
Okay, almost done and at the good part.
Tips For Dealing With the Quotes Once You Get Them:
You can compare the quotes and simply go with the best ... or you can easily negotiate still further if you like. It's up to you.
If you want to negotiate further, which I recommend, you can respond to the highest bidders with an email telling them you have gotten a lower competitive quote. Never tell them what it is. Just tell them you'll consider their new offer if they want to send one. Simple, that's it.
You can even do something similar with the low bidder if you are not satisfied with the price. I don't recommend lying in any way. At the same time, you don't have to tell them they were the lowest bidder either. You can just tell them the truth, something like,
"Based on your offer, I'm not prepared to purchase this vehicle at this price. If you'd like to submit another offer, I'd certainly consider it. It's up to you."
When no one is sending you any more quotes, you know you've gotten the best price. You've won ... and you've won on your own terms. If you think you'd like to buy it, tell them you'll buy it at their quoted price only after you test drive the vehicle. Now it's up to you. You can do whatever you want.
Also, always remember that the best time to buy a new car is when you don't really need one. Your lack of urgency will also put you in a very strong position. You can get quotes from time to time and then pounce when you see an absolutely crazy offer.
Does This Method Work For Leasing As Well?:
Absolutely. Your monthly lease payment is based on the final price negotiated. To give you an idea of the savings, for every $1,000 the price comes down, your payment will decrease by approximately $28 per month on a 36 month lease.
Once you've decided to accept a price, you just tell them to convert that capitalized cost (the agreed upon price) into a lease.
Okay, Here's Where To Do It:
My personal favorite free quote service is Edmunds.com due to their massive Dealer participation, quick and easy format, and fast response times. They also have a long-standing reputation for helping consumers in what can be a fairly "shady" auto industry.
To get to the quote page:
- At the top of the page click on "New Car Pricing". Put in your make and model and click "Go".
- Then you'll see a picture of the model, and there click on "Pricing".
- Then scroll down and click on the "Compare Dealer Prices" below any of the pictures and you'll be there. You can also click on the "See Invoice Price" link on this page.
- Then select the dealers you want to compete (the more, the better), put in your info and you're on your way.
Dealers at Edmunds are required to offer steep, no-haggle discounts right up front. You can then compare these discounts and negotiate further as described above. I've read their average starting offer is about $3,000 below MSRP. That is already huge right off the bat with no negotiating at all. In addition, you are never under any obligation at any time.
Incidentally, Canadian and other international buyers should use a zipcode from the city they intend to buy from.
And fortunately, it literally takes all of about one minute. So to get started, head on over to Edmunds.com.
The Trade-In:
It's also a good idea to get the trade-in value of your existing vehicle so you can factor that into your numbers. You can get a free appraisal at Edmunds Trade-In Quote in as little as a minute or two which you can then weigh against and negotiate with the dealer offer.
Another trade-in option which has become very popular is to simply sell your vehicle online to Vroom. They'll give you an instant quote and then even come pick up your car, so it's all done from the comfort of your home with no dealer pressure or negotiating. And they'll buy any car ... the good, the bad and the ugly. I've been hearing good things about it both in terms of its ease and the prices paid.
Well, I hope this has been helpful. Have fun turning the tables with this ... and let me know how you do.
All the best - Josh
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