Yahoo Finanzas I’m a Car Salesperson: 5 Tips for Getting the Used Car Deal You Want
If you’re looking to buy a used car and want the best deal possible, Mike Davenport, a former car salesman and owner of Mike’s Car Store, advises against relying on dealership staff for money-saving information.
Instead, he recommends doing the bulk of the legwork on your own.
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Here are Davenport’s helpful tips for getting the used car deal you want:
Do Your Research Before You Go To the Dealership
Davenport said in a video on his YouTube channel that you should research the cars you’re interested in before heading to the dealership. He said that you don’t go to a car dealership to “fact-find” about a car. This is especially true if you’re buying a used car that’s not the same make as what the dealership stocks on its lot.
Davenport added, “Do you think if you walk into a Chevy dealership and you’re like, ‘Hey, I’m interested in the Honda,’ do you think that the dealership at the Chevy store is giving you good factual information about the Honda? Or are they going to be biased towards their Chevy product and tell you why the Chevy product is good?”
Davenport suggests basing your car research on the word “spaced,” which he uses as an acronym:
Safety
Performance
Affordability
Comfort
Economy
Dependability
He said to choose the features that are most important to you and conduct your research on vehicles that offer those features. He also suggested making a list of your wants and needs in a car.
Determine Your Budget
“The biggest thing you need to worry about is your budget,” Davenport said. “How are you paying for this car? Are you paying with cash? Are you making payments? Do you have a trade-in? Do you have a little bit of both?”
Davenport explained that knowing this information in advance — instead of allowing the dealership to figure it out for you — will help you when you negotiate the price of the car.
Pick a Car Based on Your Research
Once you’ve narrowed down vehicles that offer the features you are interested in, pick a car (or two or three) at the dealership you’re interested in looking at further, Davenport recommended.
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Go See the Car in Person
Davenport suggested writing down your needs and wants before going to the car dealership that has the used vehicle you’re interested in.
Once you start looking at the vehicle, he said you should explain your wants and needs like the following example: “I have determined that safety is important to me… I want economy [and] I want dependability. I have three kids. I need to make sure a car seat fits in here. I need to make sure the stroller fits in here. I need good trunk space because I have three kids.”
“Go in and look at the car to determine if this research that you’ve done online on your wants and needs is accurate,” Davenport added.
Negotiate the Car Deal
Davenport said the No. 1 rule is to negotiate your car deal in up to three separate transactions.
Negotiate the Price of the Vehicle You’re Purchasing
Davenport said you need to negotiate with the dealership remotely — not in person.
“We do not negotiate in the dealership,” he advised. “We negotiate through the phone. We negotiate through text or email. We do not negotiate in person. “It’s a big no-no. You’re giving [the dealership] the home-field advantage.”
Davenport said the dealership will ask you how you plan on paying for the car, and you should tell them you haven’t decided yet. He said to tell them you’re only interested in negotiating the car’s price and then once that’s satisfactory, you’ll negotiate the financing.
Get Pre-Approval from Your Bank
“Get a pre-approval from your local bank or credit union, and then, you negotiate with the dealership on the financing,” explained Davenport.
Once you get preapproval from your bank and an interest rate, Davenport said to use that as leverage to get an even better interest rate through the dealership. He said you can tell the dealership the interest rate you were offered through your bank and ask them if they can do better. The other option, according to Davenport, is to say you were approved through your bank but you want to see if they can beat the bank’s offer. The catch is that you don’t disclose the exact rate.
If you decide not to disclose the specific rate from your bank, Davenport suggested saying something like the following: “I don’t want to disclose that information. Just like you’re probably not going to disclose the cost of your car to me, I’m not going to disclose the cost of my financing. So, if you can find me a better rate, I’ll do my financing through you. But right now, I’d rather keep what I have to myself.”
Negotiate the Value for Your Trade-In
If you have a trade-in, you’ll need to complete this step. If not, you’re done.
Davenport said that before taking your trade-in to the dealership, you should shop around for what your trade-in is worth. He said look at what Carvana and CarMax will offer for your trade-in. He also suggested taking your trade-in to a few different dealerships and asking what they would give you for it.
Once you’ve gathered the offers, Davenport said to take the trade-in to the dealership you’re purchasing the car from and find out what they’ll give you. If it’s not as good as the other offers you’ve gathered, use them to negotiate a fair value for your trade.
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This article originally appeared on GOBankingRates.com: I’m a Car Salesperson: 5 Tips for Getting the Used Car Deal You Want
