Reviews-at-a-Glance
Take a look at the great picture of the new CTS, a car that comfortably wraps you in the new standard in safety & technology.
Get the latest specs and info on the 2008 Cadillac Coupe Deville.
This section offers some exciting new negotiating tactics you probably never dreamed of! Arm yourself with the power of negotiation. We guarantee that you'll save money when you put these tips into action! Also, check out Dealer Scams & Dealer Holdback - Free Lease/Purchase Analysis and negotiate your way to the best car deal ever!
The absolute most important piece of information you can have in order to GUARANTEE a fair car deal is knowing how much the dealer paid for the car, by getting the dealer invoice. This figure enables you to know how much profit the dealer is actually making. WheelsDirect2U will structure your complete purchase free! Contact us anytime!
Decide in advance the total amount you can afford to spend for the vehicle, including tax, license and insurance. This will prevent emotional buying (99% of buyers will buy on emotion, the dealer counts on this fact). Once you decide which car you want, begin your negotiation using the figures supplied from above. (Remember the dealer must make a fair profit to stay in business.)
Don't be a monthly payment buyer, always negotiate the total price of the car first, and be aware of what the monthly payments should be by getting information from your bank or credit union BEFORE you go to the dealer. If you feel the monthly payments are too high, simply ask what interest rate is being used, and if it is too high, ask for a better rate(remember, interest rates are negotiable too!). All states allow the dealers a markup in interest rates above your "BUY RATE" (the amount which the lending institution "buys" your financing) some states allow as much as 6% interest to be added onto your loan! You must consider obtaining your own financing or consider extending the length of the loan, but remember the longer the term, the more interest you will pay. Be aware of what interest rates are available from your bank or credit union before you go to the dealership and if the dealer is not competitive, obtain your own financing.
Know what your trade in is worth before you begin negotiating (WheelsDirect2U.com will assist you, please arrange for this at least 1 week before you consider purchasing). This information can be obtained from your bank or credit union or by utilizing our Free Purchase / Lease Analysis. The dealer will usually go by wholesale "book" value, since that is what they can buy the vehicles for on the open market. If at all possible, sell your car yourself, since you can usually get higher price than from the dealer.
Make sure of the condition of the new car before you negotiate the deal and if there is any thing that will be done after the sale make sure you get it in writing. You should realize that undercoatings, rust proofing, protection packages, paint coatings, are profit bonanzas for the dealer.
As prices have risen, more and more people are leasing their cars and trucks since leasing enables you to maximize the amount of vehicle you can afford, while minimizing the amount you must pay. But these benefits require you to usually have better credit than buying and have the disadvantage of being more complicated and open to more pitfalls for the average buyer.
For a detailed explanation and comparison of leasing and buying, please visit our Lease Tips page.
Prepare yourself . . . Preparation is the key to Success
Once you have a particular car in mind, it's time to do some research. First, does the car have a "twin," a similar model with a different name? For instance, if you're interested in a Plymouth Voyager, the Dodge Caravan is very similar. Having several comparable models in mind ensures more opportunities for getting a great deal. Consult your insurance agent about insurance costs for particular models and about possible features that can reduce your insurance rates, such as Anti-Lock Brakes and anti-theft systems. The difference between insuring a sports car and a sedan may be large enough to offset the loss of speed and glamour. If you are planning on keeping the car for more than a few years, check its reliability record.
Come up with a budget of how much you can spend on your new car, including monthly payments and a down payment. The more you can put down at purchase, the lower your interest rates and monthly payments will be. Many experts say that if you cannot afford a down payment of 20% of the total price, the car is too expensive for you. Whether you are buying or leasing, knowing your spending limits will keep you from overspending on a high-end model or extra luxury items.
Determine the Dealer's Actual Cost
The end of the month may be the best time to buy a car. Since all salespeople have monthly quotas, they may be more willing to accept a deal that results in a smaller profit. Make it clear that you pricing several models at several dealerships, so you will not be buying today.
Hate to Negotiate?
If you hate to negotiate and are willing to pay the MSRP. If you have a trade-in, you may be able to save some money by negotiatingover the price. But rest assured that you will probably end up paying more than if you negotiate a deal at another dealership.
Buying direct from the factory is another way to avoid the dealership experience and guarantee the exact vehicle you want. Few foreign dealerships accept special orders, but most vehicles made in the U.S. can be ordered directly from the factory. You will have to wait several weeks for your car, but eliminating finance charges to the dealer may save you money.
Negotiating
When it comes time to negotiate, do not allow the dealer to intimidate you. If you have a trade-in, negotiate after you've agreed on the new car price or try selling it privately. If you plan on financing your new car, wait until after you have settled on a price. The plan here is to make sure you get the best deal possible and allow the dealer a small profit, somewhere in the neighborhood of 2.5% to 5% of the dealer invoice. Keep in mind that supply and demand will affect just how low the dealership will go. Negotiate your price up from the actual dealer price already determined, not down from the MSRP. If the salesperson disputes your numbers and shows you their invoice cost for the car, ignore it. Remember, that does not include the profit they will receive from factory holdbacks and incentives, not to mention other sources of profit, such as financing, and resale of your trade-in etc.
Your strength is the information on the dealer's actual cost and your ability to walk away at any time. Never give a deposit before agreeing and signing on a price and ask that the keys to your trade-in be returned to you before negotiations resume. Stand firm and just walk away if necessary. Many dealership tactics are designed to wear you down or keep you from leaving, such as holding on to your keys, hiding your trade or having salespeople continuously talk to you.
Negotiating The Best Price
Always negotiate the price before discussing financing, your trade-in or your credit report. The less they know, the better off you are.
Let the dealer make the first offer before you tell them that you are aware of the dealer's invoice, the incentive or rebate offered and the manufacturer holdback. The more you know, the better negotiator you will be.
Make an initial offer that is only $300- $400 over dealer's invoice. Don't be pressured and wait for a counteroffer. Negotiate until you have reached your price!
If you feel your price will not be met, walk away. There are plenty of dealerships and there is no reason to pay more than a fair price, 2.5% to 5% over dealer invoice.
Hidden Fees
Make sure that you thoroughly read all contracts. These are their costs of business. Check destination charges and documentation fees, such as registration, tags, and title to make sure they are not tacking additional money on the charges. Get a detailed breakdown of each and every fee and compare that with information you have gotten from your Department of Motor Vehicles. Extended warranties (read our buying an extended warranty article) may be a good idea if you plan on owning the car for a long period, Never purchase dealer-installed extras such as rust-proofing, detailing, interior protection, vehicle maintenance packages etc. they are overpriced, and can potentially void your warranty. In the event that your dealer states that they have already performed the work, simply explain to them to "unperform" the work. Don't pay for anything that you haven't agreed to.
The Finance Department
Careful! All the savings you have accrued during the purchase of your vehicle could disappear in the Business Office. Shop around for interest rates at banks, credit unions, and relatives before you make a decision. Almost always, the rates will be lower than at the dealership- know them before you start negotiating your new car. Some dealership finance companies offer incentives which include a choice between a rebate and a low interest rate deal. Low rate deals can save you money, but the terms to qualify for these loans can be strict. Make sure the dealer commits to your approval for the low rate before you sign the papers. If you opt for the rebate, consider using it directly against the price of the car.
How to Handle Your Trade-In
Once you've come to a mutually beneficial purchase price, negotiate your trade-in (called "kick'n in the trade, dealers hate this last minute suprise). Always treat your new car and trade-in as two separate entities. Remeber to take your car to several dealers with the thought of entertaining an outright sale. Don't allow the dealership to attach conditions to your trade-in. They don't affect the resale price of your trade-in at the dealership, so why would it affect your selling price. (see buying tips for great trade-in advice)
Take Delivery
Make a final inspection of the car. Remember, your new car will someday be your used car. A successful purchase requires successful preparation. Receive a Free Purchase / Lease Analysis.