Buying a car can be a big decision. Unless you are making a cash purchase, you are likely to be paying for the car for years to come. That is why, it becomes important that you buy the best car in your budget and that you get the best deal possible. Here are key questions to ask your car salesman to make sure you are making the best choice possible.
1. The ‘invoice’ Price
The invoice price is the price that the dealer has paid for the car and is a good starting point for a negotiation. Of course, there are many prices that are added on as well as subtracted from the invoice price and every dealer has different methods of buying his cars, but this makes a good start.
2. Best Time to Buy
Typically, the last day of the month at the end of the quarter is the best time to buy. But, very often, the best time is just before new vehicles are about to arrive on the lot. One of the key questions to ask your car salesman is whether there are new models arriving in the near future.
3. No Haggle Price
Few dealerships put up a sign that says ‘No haggle prices’. One of the key questions to ask your car salesman is if the sign really means what it says. Most dealers will be happy to negotiate a little bit to close the deal and it may be in your best interest to haggle a bit.
4. Hidden Finance Costs
Many lenders charge the car dealer a fee for the car loan they offer you. Most dealers will pass on this fee to you in ‘hidden costs’. If you are aware of this, you can get the dealer to waive this cost in order to close the deal.
5. Extended Service Contracts
Many dealerships offer extended service contracts and warranties at a cost. Find out what these service contracts are and what their cost is. More often than not, you will be able to negotiate this cost as well.
6. Dealer Added Options
Some dealers will offer you a number of add-ons to increase the value of the car. These may include air conditioning, stereo system, paint sealant, etc. Of course, all of these come at a price. While some may be good value for money, others may not.
7. Popularity of the Car
This is another of the key questions to ask your car salesman. If the car you are buying is extremely popular, you may find it difficult to negotiate the price since there are a large number of buyers for a limited number of cars.
Like everyone else, car dealers are out to make a profit. But, many of them charge exorbitant prices to their customers to increase their profit margins. Make note of the key questions to ask your car salesman and you will find that they will not be able to rip you off as easily.
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