New Car Buying Tricks

Buying a new car is stressful for many people. They dread the idea of walking into a dealership, selecting a car and entering into high-pressure negotiations. The buying process doesn't have to be that way if you know the right strategies to use. Some simple new car buying tricks can take away a lot of the pressure and help you make sure that you're paying a fair price and getting the best vehicle for you.

Test Drive Alternatives

When you go into a dealership for a test drive, it gives the salesperson a chance to put on the pressure. You may not have narrowed down the type of car you want yet, but most salespeople will try to convince you to buy the car you are trying without checking out other brands. It's easy to get drawn in by the new car smell and a vehicle full of bells and whistles. To avoid making a snap decision, don't test drive at the dealer. If you have friends with car models in which you are interested, ask if they will let you borrow the vehicle. Otherwise, rent your models of interest. This will allow you to drive them as long as you like under a variety of conditions, from the open highway to stop and go traffic. You can also try out the lights, temperature controls, radio and other accessories without someone singing their praises. The rental cost is a small investment to keep yourself from making an impulse decision and buying the wrong car.

Pricing

Many car buyers know they can find invoice pricing online on websites like Kelly Blue Book or Edmunds. They don't realize that the invoice doesn't represent the dealer's actual cost. Besides getting the cost of the new cars you're considering, find out the holdback amount and any factory-to-dealer incentives. The holdback is a certain percentage of money that is given to the dealer by the manufacturer. Factory-to-dealer incentives are similar to rebates, but they go directly to the dealership rather than to the consumer. Most dealers will not share the holdback with buyers, but they may be willing to share incentives.

Car prices can also vary widely depending on your region and the type of car you're considering. Hot models may sell at or above the manufacturer's retail cost, but most models sell well below it. Check car forums for actual prices being paid in your area to help you calculate a fair price.

Shopping

Shop online before you actually visit a dealership. Most dealers list their new car inventory online. Check your local dealers to find out which ones have your preferred vehicle on their lot. This will save you the time of visiting a dealership that doesn't have any suitable cars. If you want to bypass the salesperson, call the dealership's Internet manager and give him your price proposal. You may be able to make a deal before you even walk in. Get it confirmed via fax or email so the dealership can't suddenly back out when you walk through the door.

Fees

Some dealers will give you what seems to be a good price, then try to boost their profit with fees. These may be called preparation fees, documentation fees or even ADM fees, which literally stands for "Additional Dealer Markup." Refuse to pay these fees if they are suddenly sprung on you when you're ready to sign the paperwork. Some dealers will have them pre-printed on the contract to make them look official. Let them stay on the contract, but insist that the amount be deducted on your car's negotiated price.