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?
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