Purchasing a new car is a major investment, so it’s important to get the best deal possible. Engaging local car dealerships in a competitive bidding process can give you the upper hand. Instead of merely accepting the purchase price offered by the first salesman you meet, you are able to invite a number of different dealerships to compete for your business. The competitive bidding process can help you to avoid overpaying for your next new car.
Decide on the make, model and style of the new car you want to purchase.
Find the invoice price of the car, which is the amount the dealer paid the manufacturer for it. This can be found online in several places, such as the Kelly Blue Book (www.kbb.com) or CarPrice.com.
Call four or five dealerships in your area that sell the car you’re looking to purchase and ask to speak to the sales manager. Dealing directly with the sales manager can be easier than working with a salesman, because you don’t have to wait for him to check with his supervisor when negotiating an offer.
Tell the sales manager that you’re calling around to a few different dealerships today to find the best price on the car that you’re planning to purchase. Ask him how close to the invoice price he is willing to offer. A sales manager may even give you an offer below the invoice price, as he may get a bonus for the total number of cars sold, which could balance any loss from selling your car to you at a low price.
Evaluate the price quotes you have received after calling all of the dealerships. If you’re still not satisfied with the prices you’re received, make another round of phone calls to the same dealerships to see if anyone is willing to lower their price.
Choose the dealership that offers the most competitive price, when you are satisfied that you will not receive any lower offers.
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