Houston – Everyone wants to know how to get the lowest price on a new car. KPRC 2 consumer expert Amy Davis got the low down from an insider. Former car salesman Mike Rumple is now Your Car Buying Advocate. Instead of selling cars, Rumple now buys them for people all over the country who don’t want the headache of negotiating themselves.
He said there are 3 tips for getting the best deal.
No. 1: Negotiate everything separately
There are 3 separate negotiations.
- First work on getting the lowest price for the car you want to buy.
- Then negotiate the amount you can get for your trade-in.
- Lastly, negotiate the terms of your financing.
No. 2: Don’t go to the dealership to negotiate
Instead, call multiple dealerships to get the best price on the car you want.
Rumple says you should look at dealer reviews on Dealer Rater and Google Reviews to find the salesperson with the highest volume sales. Call the dealership and ask for that person directly. Get the price in writing, even if it is just a text message. Once you find which dealer is offering the lowest price, make an appointment with that salesperson to go in and finalize the sale.
No. 3: Get financing information from your bank or credit union before you go to the dealership
Unless you know what kind of interest rate you qualify for, you won’t know if you’re getting a good deal at a dealership. Sometimes the dealership will require you to use their financing to get the lowest price on a vehicle. Rumple says in those cases, you should make sure the loan has no prepayment penalty. You can simply refinance the loan with a credit union or bank for a lower interest rate.
Rumple said if you go in and for a specific monthly payment, the dealership will typically give you what you asked for, but that usually costs you more in the long run. Dealerships typically stretch out your loan for up to seven years. If you’re someone who wants a new car every three to five years, you will be upside down on your vehicle when you want a new one.
For consumers who just can’t follow these steps, Rumple will shop for their vehicles to get the lowest price. He charges a flat $495 fee at Your Car Buying Advocate.