Have a Bargaining Chip

Bargaining – before heading off to the dealership to buy that new car which you hope will give you better gas mileage find out what kind of financing you qualify for.  If you wait until you speak with the salesperson more than likely it will be a mental strain and wasted energy trying to figure out how much you can afford to pay out each month. Before bargaining or discussing numbers try to avoid getting roped into negotiations with the salesperson over how much you can pay.  You’re on his territory and face to face bargaining might not be in your favor.  Rather, before visiting the dealership explore your options with various banks and credit unions; the recession has actually increased your leverage.  You may be able to find a better rate than the one the dealer is willing to offer you or at least you’ll have a bargaining chip.

At the same time, be aware that bargaining over the purchase price is not all there is and you will want to know how the value of that car will hold up over the next three to five years.  This is good to know in case bargaining on a ’trade-in’ becomes a reality later.  Then don’t be fool by those extended warranties.  Most regular warranties on automobiles today will cover the critical and most expensive components of the car for the first five years or 50,000 – 100,000 thousand miles.  Also, keep in mind that if you have second thoughts about this you can always purchase the extended one before the factory warranty ends.