How to get the best price on a new car - car buying strategy

Rule 1 - Never bargain in person or on the phone
  • Only discuss pricing through email.
  • Even if they call, don't answer.
  • Let them email you.
  • Car sales people are highly trained salespeople. They know how to read you and convince you.
  • Negotiate through email, you can take your time and formulate the best response.
  • Many dealership websites have email contact information.

Rule 2 - Reveal as little information about yourself as possible
  • Especially in the beginning
  • Salespeople like to make small talk, but it's part of their strategy to read into you.

Rule 3 - Never make the first offer
  • Always let the sales person make the first offer.  "What is the best price you can give me?"
  • If you make the first offer, they know what your price acceptance/range is and will use it to their negotiating advantage.

Rule 4 - Buy towards the end of the month, Monday through Thursday if possible
  • Why? Because dealerships need to meet quotas to maintain business with the car manufacturers, and business is slowest during those weekdays.
  • If they are below quota and feel desperate, they may even lose money to sell to you.

Rule 5 - According to the guidelines above, collect quotes from different dealers and then pit them against each other
  • Each dealership wants to win over the other ones. That's what free competition is all about--the consumer gets the best price reflecting the value of the product.
  • Make sure you are comparing the quotes for the exact same car models and options.
  • They will want to know who gave you that price. If you know they won't match the price, then don't give them the information. Ask before showing them the quotes you got from other dealers.
  • When you're done, drive off and enjoy your new car at a good price!

Rule 6 - You can use the same strategy for the extended warranty!
  • As well as any other negotiations in life.

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