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4 Tips To Saving A Bundle At Your Next Car Auction
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By Chris Fox
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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.
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For more information on cars and car auction
visit http://cheap-car-auction-portal.com
Article Source: http://EzineArticles.com/?expert=Chris_Fox
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