Bargaining is basically very important, or else it makes you pay more than it is and pay interest on that higher price. Before going to dealer you should do proper research on the vehicle you are willing to buy. When dealing with car dealer, the ten important points are:
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- Dealers will generally have a profit margin in between 10 percent and 20 percent. This will be the difference between the sticker price (the price you pay) and the invoice price (the price dealer paid for the car).
- If you are clear of what you want and don't shift, a dealer may provide car for less cost. You should have an idea about the second choice, and if the offer appears you should be confident to say yes or no and should not be confused.
- You should not let a dealer get you too "high" on a vehicle, and if you say to dealer that you want to have certain vehicle or if you are delighted but not well researched, then you need to pay more.
- First start the process by phone. This helps in obtaining some competitive prices is, and there is no need to get engaged with a salesman for knowing prices. A dealer who compel your presence before providing any cost details is not good.
- Observe that all dealers will give same figures. Make use of factory invoice price as a basic support. Then each dealer will provide you a number which you can compare with other dealer prices
- Bargaining should be done for price, but not for monthly payment.
- You should be prepared to pay additional amount for taxes, registration, licenses and destinations charges. You should not pay for handling, sales charges, delivery, promotion, floor charges or any other fancy words the dealer uses. Be prepared not to pay for fancy extras like rust proofing and pin striping. They are expensive and are not required.
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