UPDATED (My dad went to college for finance, more specifically he looked a lot at stocks and how to sell things for a maximum profit. He learned it from the perspective of the company but it also works in his advantage)
- When you walk into a dealership, the salesperson will immediately “be your friend”. They’ll act like it’s you and them against dealership
- Sometimes a salesperson will offer to talk to the manager. This does not mean anything. Chances are, they’re going to have small talk for a few minutes and come back out
- Carefully consider the usefulness of an extended warranty. You’re losing money unless there’s an accident or issue soon after you buy the car
- This wasn’t so clear before, but you’re still going to have to pay a down payment. What you should refuse is a securing payment
- The securing payment is a psychological trick. You feel more tied to the company so you’re more likely to buy from them
- You’re extremely more likely to buy at the last place you go, but with the securing payment you’re less likely to go to another dealership due to a sense of commitment
- A salesperson may say it’s a limited time deal. Most times, unless this is the last of that years model, or it’s a special event, the deal is not going away and will still be there if you decide to go back. It’s not necessarily a deal breaker, but you should be suspicious if it’s said to you
- Save money by asking to buy the floor model. There’s no mileage on it, but it’s worth less because people have sat in it
- Or, ask to buy the demo if you’re willing to buy a car with some mileage. The depreciation of the price is usually worth it
- Each can get you a few thousand dollars off due to the fact that it is technically not a “new” car anymore
- Always look at the websites and play around with the build a car, payment calculators, or anything other offered features. Make sure when you’re using it you look at the down payment and the number of months that you will be paying for the car over
- Try to not buy a really obscure model because the trade in value will be lower
- Get the maximum down payment you can afford to lower the interest cost
- Look for a crash rating test. A 5 is going to get good trade in value, and is much safer
