Buying A New Car - Negotiating The Price

Even with all you've done in advance, you'll still have to negotiate a final price, a process with many potholes for the unwary. We suggest that since you're Web-savvy, ask the person on the other end of the phone to e-mail (or fax, if you prefer) the new car offer. That way, you can compare prices between several dealers without being pressured by a salesperson.

With the best price in hand you're then ready to make an appointment. (Don't walk in without one.)

Here's where it gets tricky. If you're trading a used car, the final quote will be based on the dealer's inspection of the vehicle and its value on the used car market. What you'll be paying is the difference between the allowance for your old car and the price of the new one. But the dealer will be basing that difference on the wholesale value of the used car, not on what you may think it's worth. To make the trade-in price more palatable, he may raise the used car
allowance, then make up for his loss by increasing the interest rate or selling you extras you don't really need.

Not to worry, there's a way around this. Insist that every aspect of the deal be quoted separately. That includes the trade-in price of your used car, any extras you decide to accept, extended warranties, the financing and, of course, the quoted price of the car you'll be buying. Don't be dissuaded by fancy dancing on the part of the sales staff or finance manager. If anyone tries to change the originally-quoted terms or talk you into buying a different vehicle, just say "no" and go somewhere else.

Finally, the time has come to close the deal. There are still a few pitfalls to avoid, which are outlined for you in the final step in this series.