Buyers' Guide: Guide to dealing with a dealer

AA Motoring
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Once you have signed for the car you are committed to buy, so go prepared when you go to a car dealer. Photo / Getty

Once you have signed for the car you are committed to buy, so go prepared when you go to a car dealer. Photo / Getty

When you’re in the market for a new car, weekends a re often spent at car yards, looking for affordable quality vehicles.

Thankfully, New Zealand is a country that leaves you spoiled for choice with a wide variety of new and used vehicles.

A question often asked by our AA Members is how to negotiate the best price when it comes to buying a new car. 
Here are our top tips to help you snare your next car for the best price.

Research

In today’s market, it’s relatively easy to figure out what the actual value of a vehicle is against the price it’s being listed for. Online tools such as vehicle valuation reports are available, or you can carry out your own research by viewing other dealer and auction websites to help determine a car’s value. When buying from a dealer you’re unfamiliar with, it’s worth checking their credibility through their site and any online reviews.

The best time to buy

Deciding on the right time to buy your new car can be crucial. There are seasonal changes in sales, but one factor that often remains the same is the end-of-month sales targets that dealers have to hit. This can often be the best time to try to negotiate a great deal.

Finances

Understanding your financials is important, as it can help you understand what budget you can put behind buying your new car. Think about the cost not only of purchase, but to maintain it and keep it on the road.

If you’re intending to buy a new car using finance, shop around for the best rates and try to get the amount that you want to spend pre-approved by your lender, as it will give you the power of a cash buyer. Finance through the dealer may not always be the best option.

If you’re planning on trading in your old car, consider a private sale instead as you’ll often get more money that way, as trade-in prices can often be very low.

Be prepared for the sales talk

Before you go to a dealership, have a price in mind that you’re willing to pay and stick with it. You may even want to take a friend for support as some buyers can find the negotiation process intimidating.

If you can’t reach an agreed price, shake the salesperson’s hand and give them your phone number. Tell them to give you a call during the week if things change and explain that you’ll be searching elsewhere in the meantime. Sometimes this can achieve a breakthrough before you’ve had a chance to walk out the door, or you may receive a call later that week.

Don’t get too attached

We’re not talking about the car here. Buyers often build relationships with salespeople, but you shouldn’t let this distract you from the important factors such as the price, condition, mileage and age of a car.

Remember, once you’ve signed a sales and purchase agreement you are committed to buying the car, so take the time to be prepared. It will allow you to negotiate with confidence and, if at any point, you’re not happy, just walk away.

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