The vehicle market in 2022 is hugely different from past years. Supply chain issues and high demand have made the market exceptionally competitive for sellers. Because of this, you’ll need to be prepared in advance to negotiate when buying. Here are some tips on getting both the vehicle and the deal that you are seeking.
Do your research
Never begin to negotiate unless you have done the research. In this case, you want to know as much as possible about the vehicle types that interest you. For example, if buying new, you should know the average prices from dealers and sellers in your area. If you are looking for a used vehicle, you’ll also want to know about vehicle history. Minor damage or imperfections in paint or interior finish can affect the amount you should pay. In addition, be aware that dealers may offer incentives or special rebates for certain vehicles.
Know your trade-in value
If you have a trade-in, you’ll want to know the fair trade-in value. Because of the current high demand, used vehicles can command higher prices than they did when new. This situation means you can potentially end up making a profit off a trade-in. Check resources such as Kelly Blue Book or Carfax to get an idea of what your make and model are worth locally.
Decide on your budget
Being honest about how much you can comfortably afford to spend helps shape your expectations ahead of time. Buying with cash is relatively easy since what you have is what you can spend. However, suppose you are
monthly payment, particularly important if the credit rating is an issue. A 20% down payment and a loan term of 60 months or less will generally put you in a favorable position.
Determine the out-the-door price
Focus on the out-the-door price rather than the suggested retail price. Suggested is just that, a suggestion. The out-the-door price is what customers actually pay. Out-the-door prices include taxes, title and registration, delivery fees and various add-ons. These add-ons can include things such as extended warranties, floor mats, and sometimes mysteriously named “dealer fees.” While some of these extra costs are necessary and unavoidable, you can negotiate others. For this reason, you need to be aware of everything on the paperwork before signing anything.
Dealing online may seem unusual for something that is usually an in-person activity. Still, you may want to negotiate via email. First, it puts everything in writing to keep all parties on the same page. Second, it allows you time to think and compare rather than produce an answer on the spot. Finally, you can focus on one part of the negotiation at a time instead of trying to understand and manage the entire deal at once. You will make better decisions when not on the spot and under pressure.
To summarize, have a firm idea of what you can spend and what the vehicle you want costs. Then, stick to the out-the-door price and you will do simply fine when you negotiate for your next vehicle.
At Auto Market of Florida, we specialize to get the best deal and experience of buying a car for our clients. When you have no time to take a part in negotiating, we can assist you and represent your best interests.