Chapter 6. Making The Deal

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After you've decided on one or a few makes and models to shop for after completing the Set Your Needs and Monthly Budget worksheets and going through the New Car Buying or Used Car Buying chapters and completing the Deal Tracker worksheets, you have several options for finding the deal that suits you best. If you might buy from a private party, first follow the advice in Appendix 2 - Private Party Sales. 

Option A. If you want to use the standard process of locating dealerships, checking out the cars, and putting a deal together whether in-person, by phone, or online, skip options B and C. 

Option B. If you want to avoid locating and visiting many dealerships and the stress of final negotiation and transaction closure, simply choose one of the no-haggle, fixed price options listed in the Introduction and in Chapter 8 - Website Directory Many dealerships will allow you to shop and buy online and via email/phone, and have a car delivered to your door, but this option should be reserved for extreme cases as there are many risks. 

Option C. If you want to entirely avoid the car-buying process, contact a broker who will charge a fee to work on your behalf to get the car that you want. There is a wide variety of such services, ranging from national and regional down to local. Just do a Web search for "car buying broker service" and you'll find many options, plus recommendations from reputable publications such as Edmunds, J.D. Power, and NerdWallet. 

When to Buy 

Is there an ideal time to buy a car? While there isn't a single "ideal" time that applies to everyone, there are definitely periods and strategies that can increase your chances of getting a good deal. Here are some factors to consider: 

• End of the year (October-December): This is generally considered the best time due to dealerships pushing to meet quotas. Look for year-end sales, clearance deals on older models, and potentially higher incentives from manufacturers.
• End of the month/quarter: Similar to year-end, dealerships aim to hit monthly and quarterly goals, creating opportunities for negotiation.
• Slow sales days: Weekdays, especially early in the week, and off-peak hours might provide more time and leverage for negotiation.
• Holiday weekends: Memorial Day, Labor Day, Black Friday, and others often come with special offers and promotions. The challenge here is that the dealerships will be very busy, so it's best to make an appointment.

 Other factors 

• Model year changes: Dealerships might offer discounts on older models to make way for new ones, typically around September/October.
• Manufacturer incentives: Research current promotions and rebates offered by specific brands.
• Used car market: While less predictable, you might find deals on used cars when new models come out or during economic downturns.
• Your personal situation: If you're flexible and can wait, you'll have more options for negotiation. Don't feel pressured to buy immediately if you're not comfortable with the offer.
• By being flexible, informed, and strategic, you can increase your chances of finding a good deal on a car, even if it's not the absolute "ideal" time.

Preparation

1.  For new cars, get multiple price quotes for the makes and models that you selected from the dealers in your Deal Tracker worksheets. Download and edit the Sample Dealer Letter and send price quote requests to the dealers via email. In any case, you should negotiate as far as possible via email and phone as you risk falling into sales traps once you get into the dealership. 

For used cars, search for the makes and models on the top websites in Chapter 8 - Website Directory. You can adapt the Sample Dealer Letter to the specific cars of interest. You can of course skip this step if you prefer to jump right in and start visiting dealerships. As with new cars, you should negotiate as far as possible via email and phone as you risk falling into sales traps once you get into the dealership.

2.  Research the typical price ranges that people are paying in your region using the advice in Chapter 4 - New Car Buying checklist or Chapter 5 - Used Car Buying checklists and enter them into the Value Range field of your Deal Tracker worksheets if you have not done so already. Your target price range should take the above into account, and for new cars ideally be as close to the invoice price as possible, unless the car has limited availability and/or is in very high demand.

3.  Set your offer terms in the Deal Tracker worksheet(s):

• Target Price Range  
• Down Payment Maximum  
• Monthly Payment Maximum (including any add-on products/services)  
• Trade-in Value Range 

4.  Confirm the out-the-door price and optional adds-ons:

• This includes the base price, taxes, fees, destination charges, and any dealer-installed options already installed. Decide whether you want the options and ask them to remove any that you don't want. If they refuse to remove them, decide whether you are willing to pay for them and if not, thank them for their time and leave.
• Ask for a list with prices of all optional add-on products and services that would normally be introduced in the finance office while closing the deal. Review the dealer add-on advice below and decide whether you want to incorporate any into your Monthly Budget worksheet. An overview of common add-ons is in Appendix 4.

5.  Negotiate if possible and necessary

• Determine whether the price is fair according to your research under the Preparation steps above, that there are no show-stoppers, and decide whether to proceed.
• If it's a no-haggle dealership such as CarMax, this is usually not an option and if the price isn't acceptable, thank the salesperson for their time and just walk away. if it's not a true no-haggle dealership, they will counter-offer, so proceed with the steps below.
• Use the Deal Tracker worksheet to present your offer, starting with the low end of your target price range. Ask the salesperson: "How much more than <your target price> would I have to pay to buy this car today?". Depending on the response, counter-offer strategically and if the offer doesn't come close enough, thank the person for taking the time and walk away.
• If the salesperson uses the four square sales method which is often done to confuse buyers, your Deal Tracker worksheet contains space to enter their four square terms for easy comparison and counter offering.
• Avoid disclosing your absolute limit or how much you love the car, as it weakens your bargaining power.
• Don't be afraid to walk away: If the deal isn't right; be prepared to leave and try another dealership. This can sometimes prompt the salesperson to offer a better deal.

 *Dealer Add-on Advice

• Do your research: Compare prices of similar products from other providers to ensure you're getting a fair deal. Read the fine print to understand the terms, limitations, and exclusions of any add-on product before signing anything.
• Not all add-ons are created equal. Evaluate each product based on its individual benefits, your specific needs, and existing coverage options.
• Negotiate! Don't feel pressured to buy everything the dealer suggests. Negotiate prices or politely decline if not interested.
• Ultimately, the decision of whether to purchase add-on products is yours. By being informed and negotiating effectively, you can make choices that suit your needs and budget.