…now onto the hard stuff…business.
You’ve (finally) decided on the car you want. It may have taken a day, several days, weeks or even months. Please don’t let your search last months though, you may lose a prime opportunity! On the other hand, just as in relationships there are many fish in the sea and if you extend your search out a bit you may find another perfect deal!
Ideally, have a down payment ready, at least $2,000 or more. This shows the dealer you are serious about taking a car home that day.
Depending on your credit, you may not need to have a down payment ready. This comes in very helpful if you need to buy a car in an emergency situation, such as my situation where both of our cars are in a sensitive state. Remember, even if you’re in a emergency/rushed state of getting a car, don’t rush the process itself.
What I mean by this is, pay attention to every detail of the contract and the car:
- Will there be a warranty? How long? Can you upgrade that?
- How much are your monthly payments?
- What kind of insurance do you need? (More than likely full coverage)
- When are the payments due? And to whom?
- Is there a Carfax report you can have?
Of the top of my head these are just some of the questions you may want answered before you sign anything.
Now, onto the haggling.
As I mentioned in the last post, set your budget and make it known. Be prepared though, the dealer may still show you something that is a bit above your budget simply because the dealer may want a higher commission and may also do it because he thinks you may be interested. A lot of people have told me that stating your price is the last thing you should do, but it worked out very well for me!
Once you’ve decided on a car you really like and agree on, it may be more than what your budget has allocated. This puts you at an advantage believe it or not. Perhaps I better explain my story and you’ll see how I knocked nearly $4000 off this car.
I drove on the lot and immediately saw the car I wanted. I have dreamt of this car and researched it extensively. At some point in time I nearly gave up on searching for this car because it is a rarity to find it with an Automatic transmission. I greeted the dealers very warmly, joked a bit and mentioned that this car is my dream car and wanted to take it for a spin. They obliged.
Unfortunately, no price was posted on the car itself. During the test drive we talked price. The dealer said this car was $19000 and I mentioned my budget was $13000. I feigned slight defeat and mentioned how much I really wanted this car. My boyfriend took a test drive as well and also mentioned how much he also wanted this car. We came back to the lot.
I asked the dealer if he had any other cars on his lot comparable to my dream car for around $13000, this shows the dealer I’m serious. He said that he didn’t have any on this lot, but he could bring two others in. He sent two other dealers to get a Scion and a 2008 Eclipse.
I forgot to mention to him that I am only comfortable driving automatic. The cars he brought were manual transmission. Big oops. I still test drove them although my manual transmission driving skills are icky. I brought both cars back and parked all three contenders together. I reiterated that I really wanted my dream car if only there was something we could do about the price. At this point the dealers said that we could make a deal. Maybe.
We sat down for hours. The original price was $19000. At the end of that session, I brought it down to $15500. I just kept repeating my price, made offers and kept a straight face. Perhaps poker players would be the best car hagglers.
Drum roll, please!
I bought my dream car! A 2005 Mazda RX-8 with only 28000 miles! It drives like a dream! Those are actual pics of my new ride, I am so excited to finally have a nice car! Plus it’s the perfect size for us, there’s plenty of room in the back and has four doors. Perfect match!
So there’s the end of a happy little story, I’ve got to sell my little Honda Civic now!