What are some tips for haggling when buying a new car?

Question

I am about to buy my first new car (my first one was given to me by my parents when I got my licsence). What are some of the charges I should try and fight, like the "aquisition fee". I'm looking to buy so I feel like they are going to try and get me on more stuff.

How far can you haggle down monthly payments....buying as well as leasing...

thanks for any help, obviously I need it....

Answer 1

Dealers often add "extra profit" fees that are disguised as official or non-negotiable fees. The most common is the infamous "doc" or "documentation" fee. There are others with different names, such as a "prep" or "vehicle preparation" fee that is bogus. Then there are charges for "paint sealant", "fabric protectant", "window etching", and rust proofing.

You can often negotiate these fees down or out but watch out that the cost you thought you saved might magically pop back up somewhere else in the deal.

BTW, an "acquistion fee" is a standard fee when leasing, and it is not negotiable although in some cases dealers get a part of it back from the lease company.

You can't negotiate a car deal, either lease or buy, based on monthly payments, if you don't understand how those monthly payments are being calculated. Here's an article that explains it better. It's more about leasing, but it also applies to buying:

http://www.leaseguide.com/Articles/payme...

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Answer 2

Go to www.edmunds.com or www.kbb.com and find out the invoice price for the car you are wanting to get. Honestly financing a car for anything over %2 is a bad idea but that is business management talking. Also if there are incentives like bonuses that are coming up this will help you. Another thing to remember is that you should always go low, the worse thing they can say is no. There are a million dealerships and they are all dieing to get your business.

I will recommend one last thing. There is a chapter is Dave Ramsey's "total money makeover". It breaks down car payments and interest and actually shows you how much of a waste it is. It also shows you much better ways to make use of the $400-$500 a month. Best of luck.

Answer 3

Go the end of the month and NO extra warranties............don't say you love the car or need to buy by a certain time. They will string you out for a long time, get a MSRP and dealer cost before going in.

Answer 4

Car negotiating isn't hard once you learn the "language" the dealership uses. I used to sell cars so I'll help you out. First off, get payments completely out of your head. This is exactly where the dealership WANTS you to focus, because it's something they can change without affecting the price? How? I'll explain.

When you first start negotiating, even if you've already filled out a credit ap and they know your score, they are going to "start high" on the interest rate. In other words, if you qualify for 6% they are going to put it up at 8 or 9%. Then when you say you want lower payments they drop the interest rate down to 7%. Anything above what you "qualify" for they get a piece of. It's a big racket!

So DON'T negotiate payments. Negotiate the PRICE of the vehicle.

As for leasing. If this is your first car you won't qualify. People that qualify for leases usually have to have a pretty good credit score and an established credit history.

If you're a first time buyer your best bet for getting a good deal is to get pre-approved. Pre-approval lets you know exactly how much vehicle you can afford and then you go out and negotiate the price.

For more information on pre-approval and negotiating you're welcome to visit my site and blog. I've got 2 great articles on car negotiating in my blog.

Good luck to you!