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Buying from a dealership.

What you need to know.

It pays to know what you want

Understand how much you want to spend before you go into the dealership

With financing, try to get pre-approval for a loan with a good rate beforehand

Haggling over the price can be a notoriously painful process.

Car dealers are there to help you buy a new car, however it does pay to understand

what to look for and things to avoid when going through a dealership to get your next

car. In this guide we outline key things you need to know before you walk in to ensure

you get the best deal.

Before you buy

from a dealer

simplify.co.nz 0800 001 561

1. Understand dealer


Car dealers and manufacturers frequently

offer customers incentives to buy from

them. From 0% rate finance, low deposit,

clearance sales through to free servicing

and guaranteed buy-back. These all sound

good in theory, but they maybe the more

expensive option in the long run. So check

the total cost over the duration of the car

ownership to see if it’s worth it.

2. Low trade-in offer

If you’re trading in your car, someone from

the dealership will likely take a look at it and

provide you with the value of your trade-in.

This valuation may not be as high as others

may offer as your focus has moved from

your old car to your new one. Remember to

get the best cost and finance for your call,

what you get for you current car matters.

3. Paying for features

you don’t need

Another easy way car dealerships get you

to spend more is by adding additional

features and packages you may not actually

want or need. They may also highlight a new

feature in a newer model than you originally

wanted and get you to upgrade to something

more than your budget. Before you go

try and lock in your upper limit to avoid this.

4. Framing monthly

payments, not sale price

The number one ploy dealers use to avoid

you negotiating a better deal is framing the

deal around monthly payments, rather than

the actual price of the car. Making an

affordable payment is relatable and gets

your mind off of the actual price, this can

lead to you paying more as they easily hide

add-ons and upgrades. So always talk to

the dealer about the total sale price.

5. Assuming dealership

finance is the best

While you may be drawn to a certain car

or brand because you saw an ad for a low

interest rate. You need to take into

consideration the total cost, including the

purchase price, fees, repayments and

what’s included such as service plans and

roadside. A lot of the time, you may be better

off taking an independent finance and

getting a pre-approval in place – which

allows your better negotiating power and

can be less over the duration of the loan

even if the rate is higher.

How can we help?

We already move 3,000 kiwis


by kiwis

Get Finance Approval

• Apply in minutes

• Relax, we compare for you

• Get pre-approved before you start

Skip the dealership?

• Take control with expert advice

• Let us negotiate for you

• Buy with confidence

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