When you’re on the hunt for a new car, there’s only one thing that’s more important than lots of cupholders and an awesome audio system — and that is the price!
No one likes to pay more for a car than what it’s really worth. So, here are our top tips for getting a better deal on a new car, without losing out on all the best features.
1. Don’t trade in your old car
Instead, negotiate a better deal and sell your car for cash. It’s generally accepted that if you trade in your old car, you’ll get a better deal on a new car. However, this isn’t always the case.
Dealers often charge a premium for the convenience they offer by taking the car off your hands and sometimes you won’t even know they’re doing it. Sounds pretty shady, right?
Well, that’s because it is. New research from the Marshall School of Business shows that “a consumer with a trade-in actually forks over more money to the dealer than consumers without a trade-in”. Dealers often charge higher prices to customers who trade in old cars if their new car is the same make or model, says associate professor, Anthony Dukes.
“Your decision to trade in your old car tells the dealer something about you and your insensitivity to price. It might be why car salespeople often ask you, soon after stepping into a showroom, whether you’re trading in your old car — even before you discuss terms of the new car.”
So, why not sell your old car to a scrap metal recycler and put the cash towards a car that hasn’t been bumped up in price?
2. Buy during slow business periods
Most consumer industries experience a slow business period around the middle of the year, and car dealerships are no exception. “April is the slowest month of the year for new car sales because half of it is taken up by school leave and public holidays,” says Joshua Dowling, National Motoring Editor at News Corp Australia.
If you’re in the market for a new car, chances are you’ll be a blessing for dealers who are desperate to meet their monthly sales targets. “Dealers start to get twitchy about 10 days from the end”, says Mr Dowling. You might be able to knock the price down at the end of April because they’re more likely to be relaxed on price.
3. Get clicking
A lot of the stress in selling your old car and buying a new car can be alleviated by doing some research online. You can visit car company websites, dealership websites and used vehicle listings to find out more about prices and models. On some sites, you can even read hundreds of road test reviews to get a taste of what the experts think about specific cars and their value for money.
4. Get several quotes
If you’re hoping to sell or trade in your old car, it’s smart to get a quote from several different places before you sell your vehicle to the first bidder. Being armed with more information puts you in the best possible position for bargaining and gives you more cash for your next purchase.
If you’re interested in learning more about how you can sell your car for cash, give us a call today on 1300 SCRAP CAR or request a free online quote!