Getting the best price on a new car
iDetail’s 5 Ways to Get a Discount on a New Car
You just saw the latest model year Mercedes-Benz on the road and inspiration comes to mind. The wife saw it too. Driving that new car is probably way more exciting than the experience you’re about to experience trying to purchase on. Dealers see you as a walking target as soon as you enter the dealership. That’s okay, with these tips from our dealership friends, you can score a good car and a good price to boot.
1. Avoid Buying a Car in Spring and Summer
Woo-hoo. When the birds are chirping and the sun is shining, everyone’s in that happy shopping mood. That’s when most of us want to take our wallet and splurge on something after the winter hiatus. However, this is the high-demand season for dealerships too and could have you paying more. Car dealerships know that they can get the maximum price from the sudden surge of motivated buyers. Summer is also when most dealerships conduct their sales training so that their staff still have those “I’m working hard for you to get the best price” tactics fresh in their mind. Btw, when salespeople “need to fight with their manager to get you the best deal”, there’s is no manager. They’re more likely walking into the manager’s office and having a quick snack. The manager is only available to come save the deal as you’re walking out the door so don’t be afraid to walk to the next dealership. The takeaway here is to buy in a low season like fall and winter when customers are scarce and dealerships are motivated to sell moreso than customers willing to buy.
2. Negotiate Based on Wholesale Pricing
You can use CarCostCanada to find the “wholesale price” of the exact vehicle you want to purchase. The prices you will find is not the real-real wholesale price but it does offer a great starting point. Try to aim for getting your vehicle 2-5% above wholesale price. That still makes it profitable for the dealership even though it may not be a great business for them.
3. It’s OK to Buy From a Junior Salesperson
When that salesperson with a slightly less fancy suit approaches you, there’s no need to shy away. They’ll sell you the exact same car even if they can’t recite the specifications for you off the top of their head. It’s a great situation if you already know what car you want to buy. They’ll sell you the exact same car that the senior salesperson will. However, junior salespeople are looking to sell their first few cars, they’re not as well-versed in negotiation, and they have no high-margin sales performance to maintain. This is an opportunity for you to score the deal. They win too, they just want to sell something and be appreciated by a customer. They’ll probably provide the best after-sales support too. Not to worry, the financial process and delivery will be handled by a team of seasoned pros behind the scenes. It’s not like you’ll get a lesser car from a lesser salesperson.
4. Shop at the end of the year or month
Month-end is usually dreaded by dealerships. They have a very limited amount of time to hit targets to secure their bonus from head office. They’re picking up the phone and calling all their potential customers with aims to sell as many cars as possible before the month ends. This makes it a great opportunity to go to the dealership and negotiate a price that’s rock bottom. Some dealerships are even motivated to sell the car at cost to meet their volume targets. Try it out.