How to save money when buying a new car

by FRANK BUACHIE

Lots of people have been swindled by car salesperson s during price negotiations,because they accept whatever is offered to them. You are about to learn the tactics used by the car dealers and how you can get around them.First you need to understand what makes up the dealers profits. Apart from the manufacturer suggested retail price a dealer also gets financial incentives from the manufacturer when a new car is sold. This is called Holdback. Depending on the car,dealers make lots of money on new purchase through holdbacks.They also get additional incentives and bonuses selling cars before the end of the month and/or quarter. Dealers can make several thousands of dollars on a new car even when they sell it at invoice price. This is how new car buying can become tricky for the consumer.The following are the tactics used by car dealers and you should be aware of them when you go to a dealer to buy your next new car.1.GuiltIf you have noticed,almost every desk in a car dealership has photos of the salesperson's family, instead of photos of cars.Right in the middle of the negotiations,the sales person will bring them up to make it look like his little commission check can't even pay for his children college education. They create a feeling of guilt in you for driving the price down and hurting their commission. Be aware and don't fall for it.2.Delay tacticsPrepare to spend half a day at the dealership or pay whatever the dealer asks for. Car dealers are trained to delay and tire you out to the point where you give in and accept their price just to get out of there. When you make your offer, they claim the have to consult with their manager. You may then have to re-start negotiating with the manager, who is also a seasoned salesperson. This will go on for a while until you give in. Demand to speak to the manager after a certain time period or threaten to leave. By devoting a lot of time to bargain with the dealer, they know you are a serious buyer, so they will not let you leave. The earlier you can speak with the manager, the faster you can leave.3.Test DriveAlthough it is essential to test drive a car before you buy it,do not show your absolute love for the car to the salesperson. Their goal is to get you emotionally attached to the car. 4. Monthly PaymentsDealers will start talking about monthly payments instead of the total price of the car. They will start by asking how much you are willing to pay per month and how much of a down payment you are willing to pay. Most people don't want to look like they cannot afford the carand so they will usually give a higher number.That's a big Mistake! This will only give you a little room for negotiation when this happens.The conversation must be about the total price of the car.Do not mention any trade-ins at this point.Do that Only after the total price of the car has been negotiated then talk about interest, monthly payment and trade-ins.LastlyRemember, first focus and negotiate on the Total Price of the vehicle. Everything else is pretty much the car dealer's trough. I hope this information will help you when you are ready to purchase your new car.