How to Buy a Car--Negotiations

Buying a car is not fun. It's not joyful. Sure, you get to drive off the lot in a pair of wheels, maybe even get your first car (me). But....dealerships are scary. How do you do it?

Step 1: Don't buy same day. You need a car right, why not buy that day? No! Don't Do it!!!!!Worst thing in the world. Buying a car is a big decisions, so take the first day to do your research. Test out some cars. Look around. Just walk the lot by yourself. Be quiet and walk around. You can even do the research from the comfort of your own home. Which brings me to step 2--

Step 2: Research. What car do you want? Sedan, compact, sports? There are a ton of cars out there, so try to see what you want. I suggest going to Edmunds.com, one of the premier car sites on the internet. You can research reviews, pricing, and even schedule a free call with a "car expert" to discuss what exactly you want, how much you want to pay for it, and when to buy. I got a guy named Gabe, who walked me through how dealerships shuffle the numbers (KEY POINT, look at the terms and interest rates).

Step 3: So you've done your research, you know what car you want. Now....how much? Great question. And again, it comes back down to research. You know what car, what type--now you need to know how much. Scan the web (Edmunds.com shameful plug haha), and find out exactly around how much you could pay for the car. Don't look only in your area--prices might be higher. Look within a 100 mile radius, 200 miles--doesn't matter. Find the lowest price, and proof it. Take a screenshot of the price, a picture--something to back up the lowest price.

Step 4: Call!!!! Do not go in. Call!!!! You can arrange everything before you step foot in the dealership. Once you enter the dealership, you're on their turf. Be firm, and use the phone to help get what YOU want. Not what THEY want. When calling, call maybe 4 or 5 places. Make appointments, go through everything, give them your terms (What you want to pay)--and see what they say. Remember the Rule of 3--next step.

Step 5: Rule of 3. The first price they throw you is the highest. You should always go at them with your lowest. Be firm, remember--you do not have to buy from them, so no reason to push it. First quote they give you (1) is their highest. Second quote they give you (2) is a bit lower. Third quote (3)--basically they'll come to you--they want the sale, you know that. And this is how you can work it. Remember all of those other dealerships? Mention how you have appointments there, and how you're going there that day (even if you are not). It creates urgency for the dealership, and they're more likely to work with you.

Step 6: When you finally get to the dealership, make sure 100% the contract is what you want. Examine it, you have plenty of time. Be prepared to spend more than 2 hours there. They may want you to get out fast, but this is a big decision. Take your time! Its fun, they usually have free snacks and water :)

Step 7: Finance department--Their job is upcharging. Oil changes, maintenance. Truth be told, if you're buying or leasing a new car, unless its a total piece of crap, you shouldn't need a 3 year/36k plan. You should be fine. However, they'll come at you hard with their terms. Don't be mad, it's their job. Here, the Rule of 3 Applies again. If you really want the maintenance package, say no 3 times--they'll come down to you, and in the end--you'll get the car and a great package (oil changes, maintenance) for 2-3 dollars extra a month.

Step 8: All set. Make sure its good. Sign. Done. Follow these 8 steps, and you should save a lot of money by being Smart, Efficient, and Effective. Remember, a car is a big decision. You have the power. You get what YOU want. Period. I hope it helps :)