Buying a new car is an exciting experience, but it can also be a daunting one, especially when you’re looking at the manufacturer’s suggested retail price (MSRP) of the car you want and you’re not sure it aligns with your budget. However, with a bit of knowledge and strategic planning, you can save a significant amount on your next vehicle purchase. Here are some tips to help you pay less than MSRP and drive away with a great deal.
Do Your Research
Knowledge is power when it comes to negotiating a good deal. Before stepping into a dealership, research the make and model of the car you’re interested in. Utilize online tools and resources to find the average market price, dealer invoice price, and any ongoing promotions or rebates. Understanding the vehicle’s true value can put you in a better position to negotiate a fair deal.
Remember Timing Is Key
The timing of your purchase can significantly impact the price you pay. Dealerships often have monthly, quarterly, and yearly sales targets, and they may be more willing to negotiate toward the end of these periods to meet their goals. Additionally, buying a car during a manufacturer’s promotion or clearance event can result in substantial savings. Keep an eye on seasonal trends, and plan your purchase accordingly.
Be Flexible With Options
While it’s tempting to go for all the bells and whistles, adding numerous optional features can quickly inflate the final price you pay. Be flexible with your requirements and consider which features are essential versus nice to have. By opting for a more basic trim or forgoing certain add-ons, you can significantly reduce the overall cost of the vehicle.
Shop Around
Don’t settle for the first dealership you visit. Prices can vary between different dealerships, and competition can work in your favor. Get quotes from multiple dealerships, either in person or online, and use these offers to negotiate a better deal. Having competing offers on the table gives you leverage and puts you in a stronger position to secure a lower price.
Utilize Online Pricing Services
Take advantage of online pricing services and platforms that provide quotes from multiple dealerships in your area. These services can streamline the negotiation process, allowing you to compare prices without the need to visit multiple locations. Some platforms even allow you to make offers directly to dealerships, creating a more efficient and transparent buying process.
Consider Certified Pre-Owned (CPO) Vehicles
If you’re open to the idea of a slightly used vehicle, consider certified pre-owned cars. These are typically low-mileage, well-maintained vehicles that have undergone a thorough inspection and come with an extended warranty from a dealership. CPO cars often represent excellent value for money compared to their brand-new counterparts, allowing you to enjoy significant savings without compromising on quality.
Negotiate the Price, Not the Monthly Payment
Dealerships may try to direct your attention to the monthly payment rather than the overall price of the car. While a lower monthly payment might seem attractive, it’s crucial to negotiate the actual purchase price first. Once you’ve agreed on a fair price, then discuss financing options to ensure you’re getting the best deal on your monthly payments.
Be Prepared to Walk Away
One of the most powerful tools in your negotiation arsenal is the ability to walk away. If the dealership isn’t willing to meet your price, or if you feel pressured into a deal that doesn’t align with your budget, be prepared to leave. Sometimes, showing that you’re willing to walk away can prompt the dealer to make a more favorable offer.
Paying less than MSRP on your next vehicle purchase requires preparation, research, and strategic negotiation. By being informed, flexible, and persistent, you can secure a great deal and drive off the lot with both the car of your dreams and a little extra money in your pocket.