Most people don't buy a car the same way they would purchase a loaf of bread. Sure, both items come with a price tag, but where you might just accept that the price of bread is the price of bread, you will probably expect at least a little negotiation over what you are actually going to pay for a vehicle. And before you start to hammer out a deal, you will want to know what parts of a car's total cost are set in stone, and which ones are subject to debate.
Parts to Negotiate
These are the components of a vehicle's price that should absolutely be discussed before anything is signed.
- The Sticker Price: The number that is printed on a car’s window sticker reflects the MSRP, or Manufacturer's Suggested Retail Price, and please note the use of the word, "suggested." Dealers have the power to charge whatever they want to for a particular vehicle, and this is especially true for used cars. You should understand that it will be more difficult to talk down a price on a vehicle that is heavily in demand than it will be to get a deep discount on a car that has been over-produced.
- Your Trade-In: To help you get the most for the vehicle that you're trading in for your auto loan, make sure that the car is clean, both inside and out. It will also be helpful if you're able to provide the maintenance records for the car in order to prove that the vehicle has been cared for. And you should have an idea as to what other models like yours are selling for in the surrounding area.
- Your Interest Rate: Your credit rating is essential when negotiating a good interest rate. Request copies of your credit reports (from all three major reporting bureaus) well in advance of going to the dealership, so that you will know how much negotiating power you have. Also, putting down a substantial down payment will typically earn the buyer a better rate.
- Extended Warranties, Gap Insurance and Accessories: All of the add-ons are optional, and if you decide that you want one or any warranty with your auto loan, you absolutely can negotiate the price that you will pay. Also, remember that these items don't necessarily have to be purchased from the dealer.
In order to come across as an informed buyer, you will want to have an understanding as to which fees are not controlled by the dealer. These costs include:
- Sales Tax
- Tag and Title Fees
- Documentation Fees
Start Here First
Before negotiating anything, it's a good idea to know exactly what kind of budget you will be working with. You can get your financing taken care of first, and Auto Credit Express can help.
Even if your credit isn't perfect, we can assist you in getting the auto loan that you need. Just fill out our fast and secure application to get started today.