3. Research financing rates
Normally, you should pay in cash when purchasing a luxury used car. However, sometimes you don’t have $50,000 in cash to spend on your next big purchase. This is when auto financing could come in handy, especially as it is the easiest option you have for getting your dream car.
However, when it comes to financing, working with the dealer is not the best choice. Each dealer makes additional money by requesting a loan from the bank. So why working with him, when you can get a lower interest rate and better deals looking for a car loan on your own? Check with your bank and look for unique opportunities out there.
4. Start dealing
Now, after you know which car you want to buy, you know its price and you have found the best financing rate out there, it is finally time to start dealing. Use a “walking price” to convince the dealer you are serious about the deal. If he refuses the price, be ready to walk away. Remember that there is a 20 per cent gross margin, so offer 15 per cent below the asking price. Make him aware that you know of the wholesale price.
5. Keep away from add-ons
The last thing you need to remember is to turn down dealer add-ons. Each dealer wants to sell additional features like detailing or rustproofing, which can pump the price up by over 10 per cent of the original price. Remember that you want a top-quality used luxury car, which is also affordable. You can get the same add-ons later at a reduced price.
