Last weeks blog about car shopping was popular with a lot of people. Thank you to everyone who took the time to send me a note about your experiences and the lessons that you learnt the hard way. One email in particular was very interesting. An experienced new and used car salesman sent in some more tips to help you get the best deal from a car yard.
"A car that has been previously registered is a used car. That includes demonstration or 'demo' cars that are brand new when they are registered by the dealer. Negotiate hard for the used cars because dealers have to move these cars quickly before they lose more value. On the upside, used cars may have had accessories added as part of their demo campaign.
In some cases new cars will only have $500 profit as set by the manufacturer. The dealer will use the accessories to make their money so be careful.
Never ever go into the dealership's office during your first visit. On average it will take 5 attempts to sell you a car and they know that the sooner they get started the sooner you will drive away in a new car. Usually they will ask closing questions like “Whose name will we be registering the vehicle in?"
As soon as the sales staff have you in the office door they will try the hard sell and get you to their finance team. The finance team will break the figure down to little pieces as in per week. “I’m sure you could afford $110 per week on this $100,000 car over 7 years, That only leaves 70% Balloon and you deserve it”.
Go back to the dealership at least three times. Every time you go back reduce the price or add accessories for free simply by implying that you are a serious buyer. Talk about extending the warranty. Warranty is another thing that has massive markup in a dealership the finance department. Always talk about other manufactures and what they offer, even if you have no intention of buying another brand. The biggest tip is the biggest competition to the dealer is a dealer in the next town that sells the same brand. Play them off against each other.
When you buy a car, Check the manufacture date. Do not get the manufacture date and the compliance date mixed up. Dealers will always try to move the oldest car first. Agree on a type car and a value that you are willing to pay then let them know that you don’t want their old stock.
A dealer will always trying a create urgency by saying things like “That is our most popular Colour” and “We will be lucky to find one with the leather interior” or “We may have to order this one”. Don’t be fooled. If they want your sale they WILL find the car you want. Don’t let them push you into something that they want to sell you like last years stock or a colour or option that is not moving."
So in summary: