Utilize DealerRater, Cars.com or social media for dealer reviews before you visit the dealership. Ideally, you should choose at least two highly rated dealership locations that are close to you and visit both before making your final decision to purchase or “Lease”. Buying from a local dealer will allow you to compare new vehicle prices, “Trade-In” offers, fees, financing and the cost of “F&I Products”. It will also make it easy for you to return back to them for any adjustments, questions, maintenance or warranty repair work.
Protect yourself as soon as you step foot in a dealership. Showing a lack of enthusiasm is one of the easiest ways to show a salesperson that you are not eager to buy and not there to play any of their games.
If you have already completed all of the previous Alpha CBA steps and have a completed “Deal Summary” or “Expert Buyer Report”, you should be ready to finalize your deal during one last visit in a matter of just a few hours.
Bring your: 1) driver’s license, 2) proof of insurance, 3) title for your “Trade-In”, 4) check for the down payment, and 5) completed Alpha CBA “Deal Summary” or “Expert Buyer Report” to your chosen dealership to begin the negotiation process.
Avoid getting hooked by the IF approach used by certain sales people:
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IF I can get you this price on the new vehicle, or
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IF I can get this amount for your “Trade-In”, or
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IF I can get your monthly payment to be $$$,
Will you buy today? This sales technique gets you to commit early to only one part of the deal and leaves you with less negotiating power for all of the other portions.
(Expert Tip) Do not get switched into a “Lease” if you were originally expecting to buy and are not fully prepared. Nearly one out of every four buyers end up leasing without having any opportunity to do their homework. Only 5-6% of those same customers actually even considered leasing until it was presented to them at the dealership.
TEST DRIVE:
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(Expert Tip) Schedule your test drive and dealer visit ahead of time via phone or through the dealer’s website. This will ensure that your specific vehicle is ready when you arrive.
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Take an extensive test drive with the exact vehicle (make, model & option package) before you purchase or “Lease” it and spend as much time as you need with the car to ensure that it meets all of your requirements. Take it through your daily driving routine (highway, city, rough roads) to see how the vehicle performs under real-life usage. Engine, suspension and tire & wheel options greatly influence the overall driving experience.
“TRADE-IN”:
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(Expert Tip) Have your car appraised first before you start negotiating the price of your new vehicle or before you sign anything. To save time, have the dealer perform the “Trade-In” evaluation at the same time that you take your chosen vehicle for a final test drive.
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Never accept the dealer’s first offer for your “Trade-In”. If the dealership doesn’t come up to the figures obtained through your research, share the information you obtained in STEP 2 with them to help with the negotiations.
PRICING:
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(Expert Tip) Don’t start your negotiation by using the MSRP or a monthly payment amount. Use the information obtained in STEP 3 to obtain a fair deal.
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Never leave a deposit for a car that you are not taking home with you. In almost all cases, the deal that you negotiated today will be available for you tomorrow.
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Do not pay attention to any added dealership stickers. Use only the manufacturer’s sticker as guide to compare features and pricing on similar vehicles.
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Your first offer should always be less than the lowest amount that you’ve found through your research on pricing. This will leave you room to negotiate up to your pre-determined fair price.
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Ask the salesperson to disclose all of the fees and taxes that you’ll have to pay. Some dealers add their own fees (dealer fees) to the price of the vehicle ensuring them a minimum amount of profit on each sales transaction. A good negotiator can usually have the price of the car reduced by this amount in order to offset the fee.
FINANCING:
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Do not provide a dealer with your credit information if you are just shopping around.
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Don’t worry about your credit review since you are already armed with this information based on your research in STEP 5. People who worry about their credit are usually less likely to argue and do not get the best possible deal.
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Do not tell any dealer that you are a cash buyer, even if you are until the very last minute.
“F&I PRODUCTS”:
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(Expert Tip) Never pay more for any “F&I Products” than what was researched in STEP 6. Only consider “Extended Warranty”, “GAP” and “Tire & Wheel” plans after reviewing that same step.
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(Expert Tip) Do not buy any “Other F&I Products” as these products have high profit margins.