DEALING WITH THE DEALER — TIPS FOR INTERNATIONALS WHO WANT TO BUY A CAR IN THE U.S.
If you’re an international student or expat who wants to buy a car in the U.S., you have a couple of options. You can either buy a car from a private seller or go to a new or used car dealership.
Either way, before you start negotiating, you need to be aware of the psychology of buying a car, and the techniques car dealerships use to get you to buy from them at any cost.
First, you need to do some research before you go to the dealership.
You will also need to compare cars with similar features from different dealerships. Make a list that includes:
- The make, model, and year of the car
- The “trim level” of the car
- “Must Have” features vs “Nice to Have” features
- Any details of guarantees, warranties, aftercare, or servicing that you want
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Once you choose the car you want, make a list of relevant car dealerships. Look for the ones with the best reviews, see what models and trims they offer and compare car prices online.
Next, get in touch with them. Let them know about the type of car and features you’re interested in, and ask them for a price quote. Ask the dealerships if they can send you the invoice for the car — which is the amount the dealership paid for the car in the first place.
Be clear, concise, and firm, and use the feature list when speaking with the dealership representative. If the car has all the features you’d like, try to take it for a test drive alone without the salesman. Regardless, don’t look too eager to buy it, communicate that you have other options, and be clear that you will buy it at the right price. Be prepared to walk away if they don’t give you a good offer but make sure to leave them your phone number in case something changes.
One very important thing you can do to strengthen your negotiating position is to already have car finance in place so you can have an advantage. Another important tip is to go to the dealers at the right time. Try going to the dealerships on the weekend shortly before they close, or towards the end of the month when the salesmen are more incentivized to meet their quotas and may offer better deals to encourage you to buy.
A highly recommended tip is to ask the dealership for the vehicle history reports, which provide you with a full overview of the car’s past service history, its real price estimate, and other critical information such as previous accidents. If the dealership does not provide the vehicle history report, you can purchase it online using the car’s VIN number. These tips will give you a strong position when negotiating for a new or used car. Most importantly, do your research, get car financing in place, and use the right negotiating approach.
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