Best Price Car Buying Technique

Why Avoid the Dealership?

When you walk into a dealership without a pre-negotiated deal, you enter the "lion's den." Salespeople are trained to use various techniques to wear you down and confuse you, such as the "4-square method," "going for a bump," and "using leg." These tactics are designed to maximize the dealership's profit at your expense.

The Power of the Phone

Instead of negotiating in person, use the phone to your advantage. Here's a step-by-step guide:

1. Identify Your Target Vehicles: Choose three or four dealerships that have the car you're interested in.
2. Make the Calls: Inform each dealership that you plan to buy a car within the next 48 hours. Mention that you are comparing final offers from multiple dealerships.
3. Request "Out-the-Door" Prices: Ask for their best "out-the-door" price, which includes all fees and taxes.
4. Create Competition: Let each dealership know they are competing against others for your business. If a quote is too high, inform them and give them a chance to revise their offer.

Why This Works

Dealerships are highly motivated to close sales, especially when they know you're considering other options. By creating competition, you force them to offer their best price upfront. This method is particularly effective during the last few days of the month when dealerships are trying to meet their sales quotas.

Interesting Stats

• End-of-Month Sales: According to Edmunds, dealerships often offer better deals at the end of the month to meet sales targets. Source
• Phone Negotiations: A study by Consumer Reports found that buyers who negotiated over the phone saved an average of $1,000 more than those who negotiated in person. Source

Final Steps

Once you've received the best offer, visit the dealership to inspect and test drive the car. If everything checks out, proceed with the paperwork. By this point, you've maintained control throughout the process and secured the best possible deal.

Additional Tips

• Timing: The best times to buy a car are at the end of the month, quarter, or year when dealerships are eager to meet sales targets.
• Research: Use resources like Kelley Blue Book and Edmunds to understand the fair market value of the car you're interested in.
• Financing: Secure pre-approved financing from your bank or credit union to avoid high-interest rates offered by dealerships.

Conclusion

By following this technique, you stay in control and avoid the high-pressure environment of the dealership. Use the phone to create competition among dealerships, and you'll walk away with the best deal possible.

For more tips on car buying, check out Edmunds and Consumer Reports.

This article provides a comprehensive guide to securing the best price on a new or used car by avoiding in-person negotiations at the dealership. By using the phone to create competition among dealerships, you can ensure you get the best possible deal.