Tips for Purchasing a Vehicle - What Car Salespeople Don't Want You to Know

With all the new 2008 vehicles rolling onto the car dealership lots, it's hard not to start thinking about trading in your wheels for a newer model. Before taking the plunge, consider these tips for getting the best deal.

Time is on Your Side

There are certain times of the year that are better than others for snagging a great deal on a new vehicle. It just depends on what your goals are. If your goal is to trade up to a 2008 model, the best time to do this is in the spring of 2008. Most dealerships will still have plenty of brand new, never been driven vehicles out on the lot. If you're simply looking to trade up, then you should start shopping for a 2007 model now. Any models from last year that haven't sold will be deeply discounted to make room for next year's model.

Shopping during different months can also yield surprisingly deep discounts. For example, November is historically the slowest month for vehicles sales, new or used. Since the majority of Americans are focused on planning for the holidays, sales slow down significantly. Sales people are more likely to come to their bottom-dollar negotiating figure more quickly during November, thereby making negotiations easier on you. Generally, shopping in the early winter months right after the holidays is also a good time to snag deals.

If that is not enough, the day of the month you choose to shop can also pay off. The closer to the end of the month you can shop, the better your deal will be. This is because the sales people who have not met their monthly sales quota will be working hard to close one more deal, and again, negotiating can take less time because they won't want to risk losing a sale. Also, sales people often get extra bonuses for selling a certain number of vehicles in a given month. It is easy to tell which sales person needs just another sale or two to qualify for the bigger bonus, because they'll be the first ones to greet you on the lot at the end of the month. This person is guaranteed to work hard to earn your business and really go the extra mile.

Green is Better

Although the process might take longer, try to do business with the newest sales person. This person will be eager to negotiate with because more than likely, they are struggling to meet their monthly quota and will be more fearful of losing a deal if the two of you cannot come to a quick agreement over the price. You can throw out a more ridiculous figure and see if the sales person takes the bait. Chances are, he/she will confer with the manager and come back with a better than expected offer.

Knowledge is Power

Instead of going to the dealership that is running the great big advertisement in the Sunday paper, go to their competitor down the street. But take that newspaper ad with you. When you see a vehicle that is comparable to the one you saw in the competitor's ad, show the salesperson the advertised price and ask if they can match or beat it. The best case scenario is that they can beat the price. The worst case scenario is that they can match it. If for some reason they cannot match it, you already know where to go to get the best deal.

Cash is Not King

In this world of credit, cash has taken a back seat to financing. While some folks prefer to pay cash for their vehicles, they might not be getting the best deal. An advertisement may show a very low price for a specific vehicle with no money down and zero percent financing. However, that price may only be had if you opt to finance the vehicle. If you plan to pay cash and you have it saved up, you could save thousands by going with the financing option and then paying off the loan quickly. Times may have changed, but with a few modifications, you can still make credit work in your favor.