When the time finally arrives for you to buy a new car, most Kiwis go for a second-hand vehicle to cater to a tighter budget. If you buy used cars in New Zealand, dealerships will—more often than not—offer you far cheaper deals. However, you’re still going to need to bring your A-game when it comes to getting the best bang for your buck.
We believe in transparent practices here at Motor Co, and working with our customer to achieve exactly the car and financial plan that suits their situation. While many dealerships out there share our sentiments, there are some that do not, and that’s what you need to watch for. Here’s what you need to know when negotiating with used car dealerships, and how you can come out with the ideal bargain.
Research is Key
The best car buying experience—whether new or old—starts with preparation. Knowing which car you want to buy is one thing, but knowing the practical details of the purchase is another. It’s best to do your research and maximise online resources to look into car rankings, specifications, estimated prices, financing options, and trade-ins. Obtaining first-hand knowledge on the details behind the car you’re planning to buy will allow you to gain confidence when it comes to negotiating your purchase at the dealership. For example, if you know that a different dealership is selling a similar vehicle at a lower price, it’s not uncommon to negotiate down to a similar price.
Don’t Focus on Monthly Payments
For most buyers, the default perspective is to prioritise the vehicle’s monthly payments and decide whether or not they can afford to buy the used car based on that number. However, it’s more difficult to haggle a used vehicle’s price when you’re looking at it from just one number. The best way to go about it is to look at the overall price of the car, including financing and additional fees.
You can calculate the costs through multiplying the monthly payments by the number of months in the car loan. Then add the amount of taxes and additional fees to obtain the actual cost of the used vehicle. This gives you a better idea of the entire price.
Consider Pre-Approved Financing
Having pre-approved financing from a lender, a bank, or straight from a used car dealership will place you in a better position. Plus, searching for finance before you start looking can help you discover any dings on your credit that may get in the way of your car purchase.
Before you agree to anything, however, it pays to read the fine print and know all of the terms, which includes loan length and any additional fees you may incur. With a good Auckland car finance provider, you can get a loan suitable for their budget and enjoy a hassle-free car-buying experience.
Know What a Real Deal Looks Like
When it comes to purchasing, you need to know what a true deal looks like, and what falls under false advertising. The dealer’s asking price will include a certain amount of profit, so your opening offer should not come off as unreasonable. It’s useful to know that finance officers in dealerships respond better to honest and decent clients who want to make the most out of their money and understand that dealers also aim to maximise profit at the same time. There’s nothing wrong with this so long as both parties remain professional and civil when it’s time for final negotiations.
The goal is to settle on the most ideal and amicable agreement by knowing the seller’s asking price, and then coming down to a fair price that suits everyone. You have to come to a mutual understanding where the dealership reduces their asking price to compensate for any defects or repair costs. It’s also helpful to know what you can and cannot negotiate. Most likely, you won’t be able to negotiate license and title fees, but you can negotiate other miscellaneous costs and skip the other expensive add-ons you don’t necessarily need, like a whole new set of wheels.
Scout for a reputable used car dealership.
One of the best things about shopping used cars is having the liberty to choose the car dealership you know you can trust and will help you find the right vehicle. Try to scout for nearby dealerships and learn where you can get the better deal from. Motor Co Penrose is a little different from your normal Penrose car dealers. Why? We take pride in offering you a better all-round experience when it comes to buying your next used car, or even if you’re just looking for some advice!
We have over 200 quality cars available and we stand by each one of them. We can also tailor a finance package for you to suit your budget and needs. Enquire about our services now or apply for a car loan with us today!