4 Tips To Saving A Bundle At Your Next Car Auction
By Chris Fox
Many of us have been at the car dealership and have been drained
by a salesperson during price negotiations for the purchase of a
new car. Most people give in too easily or do not negotiate at
all to avoid the dreadful act. This only means more money in the
car dealers’ pocket, while you are out of several thousand
dollars! Yes, they make that much in profit per car.
This article unveils the dealer’s selling tactics and how you can
get around them. But before we dive into the new car buying tips,
we need to understand what makes up the dealer’s profits.
In addition to the MSRP (manufacturer suggested retail price),
which is the dealer’s cost for the car plus an additional 20-25%
profit, a dealer also gets financial incentives from the
manufacturer when a new car is sold. This is called Holdback.
Depending on the car, dealers can make hundreds on each car
through holdbacks. Dealers also get additional incentives and
bonuses on selling a car before the end of the month and/or
quarter.
A shrewd dealer can make several thousand on a new car even by
selling it at invoice price. This is how new car buying can
become tricky for the consumer.
Ready to learn how not to put a dent in your wallet on your next
car purchase? Here are four tips to get you started. Each one is
a dealer tactic to watch out for.
1. The Guilt Trip
As you may have noticed, every desk in a dealership has photos of
the salesperson’s family, instead of photos of cars. Midway in
the negotiation, the sales person will bring them up and make it
look like his little commission check can hardly pay for his
daughters college and little Bradley’s braces.
A seasoned salesperson will soon have you feeling guilty for
driving the price down and hurting his commission. Watch out not
to fall for this tactic, since you already know about holdbacks
and incentive programs from manufacturers.
2. Wearing You Down
Come prepared to spend half a day at the dealership or pay
whatever the dealer asks for. Car Dealers are trained to delay
and tire you out to the point where you give in and accept their
price just to get out of there.
After you make your offer, sales people typically claim they
would have to run it by their manager. You may then have to
re-start negotiating with the manager, who is also a seasoned
salesperson. This dance goes on for a while until you give in.
Remember, there are multiple dealerships in a city, so they need
you more than you need them. Demand to speak to the manager after
a certain time period or threaten to leave. Because you are
devoting a lot of time to bargain with the dealer, they know you
are a serious buyer, so they will not let you leave. The earlier
you can speak with the manager, the faster you can leave.
3. The Test Drive
We all enjoy a good test drive and look forward to it. Although
it is essential to test drive a car before you buy it, remember
to not show your absolute love for the car to the salesperson.
Their goal is to get you emotionally attached to the car, so it
becomes a must have for you. I have learned it the hard way.
To hide your emotional tears from the salesperson, mention the
features of a competing car in the same class, like the new
shape, light, leg room, resale value etc. This will make the
salesperson a little vulnerable.
4. Monthly Payments
This one is to confuse you. Dealers will start talking about
monthly payments rather than the total price of the car. They
will start by asking how much you are willing to pay per month
and how much of a down payment you are willing to pay. Since
people don’t want to look like they cannot afford a certain car,
they will usually give a higher number. Big Mistake!
You have left little room for negotiation when this happens.
Always steer the conversation to the total price of the car and
do NOT mention any trade-ins at this point. Only after the total
price of the vehicle is completely negotiated then talk about
interest, monthly payment and trade-ins.
General Rule;
As a general rule, remember to only focus and negotiate on the
Total Price of the vehicle. Everything else is pretty much the
car dealer’s trough.
If the above new car buying tips seem like a lot of hassle, yet
you still want to get the best price in town, there are some
websites that do this for you. www.autoauctionbids.com for
example is a great website for this because you can collect price
quotes from multiple local dealers for a particular car as well
as its competing car models (like Honda Accord, Toyota Camry and
Ford Taurus) and compare them.
The website then allows you to send back the lowest quotes
received for each car make to all participating dealers in your
area through the website itself.
Dealers view this price and continue to submit new lower prices
over a 3 day period. By putting local car dealers in such a price
competition allows you to avoid the dreadful face to face
negotiation and yet gets you the lowest price in town for up to 3
competing car makes.
The best part about AutoAuctionBids.com is that it is absolutely
free for you and there is no obligation to buy after the new car
auction is over.
For more information on cars and car auction visit
http://cheap-car-auction-portal.com
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