Tips for Buying a New Car from a Dealer

Purchasing a new car can be a stressful experience for almost anyone who does not have a lot of experience in the car industry. While many dealerships look to bring in the most revenue on a new car purchase, it is easy to get a good deal by knowing the process.

Dealership revenue on a new car

Most dealerships only make $1,000 on the purchase of a brand new car under $30,000. Higher priced vehicles have a higher markup, but dealers do not make a lot of money on the sale of a new car.

Should I purchase the add-ons during the sales pitch?

The add-ons, such as extended warranty, interior and exterior protection products have high markups for the customer. Interior and exterior protection products are excellent for keeping your vehicle looking like new for a longer period. In addition, these protection products come with carefree warranties that repair damage if it does occur. However, the price of these add-ons is negotiable. Unless you are purchasing a vehicle with poor reliability, extended warranties are not worth the cost. They typically only cover vehicles to 100,000 miles, whereas most dealer warranties cover the same thing.

Check online reviews for the dealer before your purchase

Sites such as DealerRater.com show all reviews for specific dealers. Dealers have no way of editing, adding their own reviews, or changing bad reviews. You get real live reviews without having to go through all the hype that dealers tell you. If a dealer is reputable, the reviews will back this up.

Research the car you're looking at in depth

Car salespersons like educated customers because it means less explaining and work for them. Car salespersons make very little by trying to sell you a higher priced car that you may regret after the purchase. Salespersons make a bonus for excellent reviews and will do almost anything to please you during and after the sale. However, if you know everything about the vehicle you want you will be better prepared for purchasing the vehicle when you walk in the door.

Be friendly and cooperative

Salesperson work by creating a relationship with the customer and making them feel good about the purchase. When you are friendly and cooperative with your salesperson and the dealer they will help you get a good price and the car you want. When you create a positive relationship, you will get more for your money and will feel better about going back to the dealer for any questions you have.