How to Navigate Getting the Best Deal
There are many steps involved in purchasing a car. Even before you walk into a dealership, it's important to be well-prepared so you can better navigate the process and secure the best deal. But how exactly do you prepare? Here are 10 things you should never do at a car dealership—and 10 you should.
1. Don't Be Steered Toward a Vehicle You Don't Want
The salesperson has one goal in mind: to make sure you don't leave without purchasing something. They may also take into account what inventory they have at the moment and match you with what they think they could easily convince you to buy. Don't be persuaded—especially if it's not the car you want.
2. Don't Give Your Car Keys or License Away
While it doesn't happen often, some dealers may ask for your keys and license before you go on a test drive, only for those valuables to go suddenly "missing" when you decide to leave without purchasing. It's hard to imagine a toxic tactic like this still happens, but it's important to be wary. Let them do their identity checks, but don't let them take your items.
3. Don't Let Them Run a Credit Check from the Get-Go
You'll need to eventually run a credit check before you make the big deal, but until then, don't agree to this unless you're certain you're ready to buy. If the dealer goes through this process—known as a "hard inquiry"—it can negatively affect your credit score.
4. Don't Mention Trade-In Values Too Early
You don't want to give away any valuable information too early on and risk giving the salesperson the upper hand. Even if you don't know your trade-in value, keep this to yourself or you might get undersold. Plus, it's almost always better to sell your car privately than to trade it in, but do thorough research on your own time.
5. Don't Be Pressured to Buy Immediately
Because the salesperson will be trying everything to convince you to buy immediately, they'll likely bring up various promotions, offers, and add-ons to entice you. Whatever they say, don't fall for their tricks until you know you're ready.
6. Don't Tell Them You're Not Looking Elsewhere
If you reveal you're not looking elsewhere, you'll hinder your negotiating power. The dealer will assume you might not have any knowledge of what's on the market or what prices are on offer, so they won't pitch competitive prices since they don't need to compete for your business.
7. Don't Tell Them You Don't Know How to Negotiate
Again, don't give the dealer any information that could potentially hurt your negotiating power. If you outright tell them you don't know how to haggle to get the best deal, they'll have all the control and the power to steer the pricing their way.
8. Don't Take the First Offer
When you're given an offer, note it down. This is where the negotiation begins, and where you'll want to put your foot in the door so that you can steer the conversation your way. Remember to put on a poker face—don't let a dealer know when they have the upper or lower hand.
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9. Don't Show Too Much Enthusiasm
Whether you know exactly what car you want or you've found the right one, don't show too much enthusiasm. If you make it too obvious that you want a specific vehicle, the salesperson may refrain from offering discounts because they think you won't need the extra convincing.
10. Don't Tell Them Your Specific Reasons for Needing a Car
If you got in an accident or for some personal reason just need a new vehicle, keep this information to yourself. Again, revealing too much detail about your situation may hinder your negotiating power and the dealer might try to sell you something you don't want.
Now that we've covered what you shouldn't do at a car dealership, let's jump into what you should do.
1. Do Your Research
Before you even step foot into a car dealership, you'll want to do some thorough research first. What car do you want? What makes, what models? What features are absolute musts for you, and which ones can you live without? Watch videos, read reviews, and compare intensively before you make your decision.
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2. Have a Plan
You'll also want to formulate a plan before you go into the dealership, or else you might accidentally make an impulse purchase on a car that wasn't even your first choice. After you do your research, compile all the documents and files you'll need—credit score, loans, insurance quotes, extended warranty quotes, trade-in values, and the like—so you're all ready to go should you buy that same day.
3. Check Your Credit Score First
Your credit score matters to make sure you're eligible for the kind of financing you might need for your new vehicle. Get a copy of your report and ensure you understand all the numbers and fields, as well as check for potential errors.
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4. Know Your Budget
Purchasing a car—and a new one at that—makes a fairly big dent in your bank account. Make sure you do all the necessary calculations and get a sense of what your budget is before you waltz into a dealership. You'll want to take into account several important expenses, like fuel, insurance, maintenance, and registration.
5. Pre-qualify for a Loan Beforehand
You'll also want to make sure you get pre-approved for a loan before deciding to buy. Research around to compare different interest rates and terms and various banks and credit unions. Being pre-qualified elsewhere also means you won't have to rely on the dealership for financing, which gives you stronger negotiating power.
6. Do Test Drives
A car might look and feel like your dream vehicle, but you won't know if it's a perfect fit until you take it for a drive. When going on test drives, assess the car's performance, control, comfort, and condition, and see if they align with your expectations.
7. Be Prepared to Negotiate
Always, always, always be prepared to negotiate. As we mentioned earlier, you never want to take the first offer on the table. Remember, the goal of the salesperson is to get you to buy, so you essentially always have the upper hand if you play your cards right. If you're unfamiliar with how to negotiate, bring someone along with you who does.
8. Shop Around
Instead of visiting only one dealership, shop around. Research and go in person to see what other prices, deals, and offers are on offer. The more you compare prices, the more clearer of a picture you'll have. It'll also give you an advantage when negotiating.
9. Read Thoroughly Before Signing
Before you sign any contract, it's crucial you understand what terms you're agreeing to, especially when making large purchases like buying a car. If you've negotiated something, ensure it's reflected on paper, and read the financing sections thoroughly.
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10. Don't Be Afraid to Walk Away
If you don't feel completely ready to make the deal, don't be afraid to walk away. Again, purchasing a car is a big commitment and you'll want to be 100% you're happy with the offer before you sign the contract. If something doesn't feel right, give it some more thought and come back another day.
