Now that you've decided which vehicle you want and whether to lease or buy, how can you play it when you go to the showroom to negotiate your new car?

"The first thing dealers try to find out are your hot buttons," says Realtor Elizabeth Newbury, a former car salesperson. Is your hot button the payment or total price of the car? Is it driving a prestigious car? Do you think a great deal of your trade-in? Would you rather have a great deal on the new car, earning some bragging rights?

"Once the dealer knows the answer, s/he'll structure the transaction to fit whichever scenario appeals to you," outlines Newbury. "To avoid this, buyers can ask for the bottom line on the cost of the car, then ask about the trade-in."

"When I leased my new car, I just kept emphasizing how much I really liked the car, but that I had a budget," says Newbury. "I was prepared to go round and round with the manager who did try to get me to spend more, but when he saw I was serious, he worked with me. I just said, if I can't get the lease at $x, then I will have to wait. I got a good deal on the lease, and the dealership made money, too."

Wearing her former calling on her sleeve, Newbury clearly recalls what it's like to be a dealer. She offers," It's usually best to develop a genuine rapport by being honest and direct with the dealer, and they will go the extra mile with you. Dealers don't like to be sand-bagged.

"Dealership managers will work a car deal more favorably for someone who treats them with respect than for someone who acts as though they know all about the car business, or worse yet, that they expect the dealership to try to cheat them. In this life, anyone in business is entitled to make a profit, and we have to stop resenting that car dealers make one, too."

More car-shopping tips:

• Luxury car dealers will often let you drive a potential purchase or lease car for the afternoon or overnight. They will even deliver it to you. You can tell if you like the car much better that way, than from a ten-minute test drive. Expect to go through a credit check if you want to take advantage of this service.
• If you are trading your car in, clean it thoroughly and take all the personal junk out before the dealer's evaluation. This helps conveys your readiness as a buyer if your car appears as if you could trade it that day.
• Do some research on your own about models, styles and pricing before visiting the dealership. You need to know beforehand whether you want a truck or a car, a two-door or four-door, a wagon or an SUV, and so on. You will get a more bottom line answer if you have already narrowed down your choices than if you are just starting to search, which can be miscontrued by the dealer as "tire-kicking".
• Tell the dealer what car you like and what car is his competition. Let the dealer compete by telling you the advantages of the car he is selling. But don't try to fool a dealer into thinking his or her competitor is making you a lower offer than he or she is. The dealer would have every right to ask to see a written offer in order to compete. If you don’t have one, you will look foolish.
• Realtors tend to stick to near luxury or luxury models. Ask your colleagues who they bought or leased from and if they were happy with the service they received as well as the performance of the car.
• Many Realtor and MLS Associations have promotional discount arrangements with dealers in the city they serve. Compare the deals they offer with what you would expect to pay without a Realtor's discount. This savings could be offset by the fact that the dealer may be inconveniently located from you.
• Buy from a dealer that is convenient to work or home. Dealers must service any car of their make, but tend to give priority treatment to customers who have purchased from them. Is the $100 you saved on a car deal going to help you if you drive five miles out of your way to get it serviced?
• Repeat buyers or referrals by buyers are appreciated and remembered by dealers when the buyer comes back for a new car.
• If you want the look of a new car, but don't want to pay as much, consider buying a good used car. Most people don't know the difference between a new car and one that is a year old, because styles don't change that often. A one-year-old car still has plenty of warranty left to cover any problems, and you can add an additional warranty if you want to.
• Some fun sites to visit on the Internet are Consumer Reports , Edmunds , E-Loan, and LeaseGuide.

Published: February 1, 2001

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