5 Car Buying Tips to Outsmart the Dealerships

The car industry is a big industry, but the real winners tend to be on the dealer’s side. Oftentimes, the car buying public can get cheated out of thousands of dollars - all because they didn’t take a few steps back and try to figure out how to get the best deal on a new vehicle. More than that, though, it is important to know what some of the car dealer’s tactics are, so that you can spin them around and get a great deal on a vehicle. If you are in the market for a new car, knowing exactly what to say and do when it comes to the negotiating table is critical if you want to save money, but still get the car of your dreams. Here are five car buying tips to outsmart the dealerships.

  1. Get pre-approved for a loan. Car dealerships make a fortune off financing vehicles - mainly because they jack up the APR and reap all the rewards that interest can bring in. Oftentimes, dealerships can name their own APR and unwilling car buyers will go right along with the scheme - to their own detriment. However, by getting pre-approved for a car loan at a bank, you can often get a much better interest rate.
  2. Find the car that is just below your budgeted maximum. By doing this, you can work around a car dealer’s tactics to sign you up with a car you can’t afford. Oftentimes, they will sweeten the deal by making the monthly payments much lower, but the problem is that you are locked into the financing agreement for much longer. This can increase your chance of defaulting on your loan and paying more money in the long run.
  3. Take a deep breath and don’t feel the pressure. A car dealer is trained to put on a certain amount pressure while at the same time remaining courteous. It is a tactic that almost all car dealers use to push a buyer into a deal. However, if you want to beat a car dealer at his or her own game, you have to not let the pressure get to you. So, take deep breathes and take time to think if you need to. You may also want to ask for some space from the car dealer.
  4. Don’t agree to any add-ons. Add-ons are one of the sneakiest ways that car dealers make money, because oftentimes these add ons cost more to buy from a dealer than you can purchase and install on your own. For instance, In Sixth Gear (ISG) has some amazing after market parts and accessories for vehicles, so if you want to jazz up your vehicle, you can and for a fraction of the cost.
  5. Do your research. Oftentimes, car dealers will make bold claims that might not be entirely true. Of course, it is mostly true, but slightly embellished and they usually get away with it. However, if you don’t want to be duped, be sure to do your own research before heading to the car lot - it could save you a lot of time, energy and money.

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