Do Your Research
The first step in avoiding dealer markup is to do your research. This means researching the make and model of the car you want, as well as the average price for that car. There are many websites that can help you with this, such as Kelley Blue Book and Edmunds. By having a good understanding of the average price, you’ll be able to negotiate with the dealership and avoid paying more than you should.
Shop Around
Another way to avoid dealer markup is to shop around. Don’t just settle for the first dealership you visit – instead, visit multiple dealerships and compare prices. This will give you a better understanding of what a fair price is for the car you want, and will give you more leverage when negotiating with the dealership.
Negotiate
Speaking of negotiating, it’s important to remember that everything at a dealership is negotiable. This includes the price of the car, as well as any additional fees or charges. Don’t be afraid to haggle with the dealership and ask for a lower price. The worst they can say is no, and you might be surprised at how much they’re willing to lower the price in order to make a sale.
Consider Financing Options
Another way to avoid dealer markup is to consider financing options. Many dealerships will offer financing, but this may come with additional fees or a higher interest rate. Instead, consider getting pre-approved for a loan from a bank or credit union before you visit the dealership. This will give you more leverage when negotiating with the dealership, and will help you avoid any additional fees.
Don’t Buy Add-Ons
Dealerships will often try to sell you add-ons, such as extended warranties or paint protection, in order to make more money. However, these add-ons are often unnecessary and can add hundreds or even thousands of dollars to the price of the car. If you don’t need these add-ons, don’t buy them – this will help you avoid dealer markup and keep the overall cost of the car down.
Ask About Rebates and Incentives
Many car manufacturers offer rebates and incentives to customers in order to encourage sales. These can include cash-back offers, low-interest financing, or special lease deals. Ask the dealership about any available rebates or incentives, and make sure to take advantage of them. This will help you save money and avoid dealer markup.
Consider Buying a Used Car
If you’re really trying to avoid dealer markup, consider buying a used car instead of a new one. Used cars are often significantly cheaper than new cars, and you can still find a high-quality vehicle with low mileage. Just make sure to do your research and get a vehicle history report before making a purchase.
Ask for an Out-the-Door Price
When negotiating with a dealership, ask for an out-the-door price. This is the total cost of the car, including all fees and charges. By getting an out-the-door price, you’ll have a better understanding of what you’re actually paying for the car, and you’ll be able to avoid any surprise fees or charges.
Don’t Rush
One of the biggest mistakes you can make when buying a car is rushing the process. Take your time, do your research, and don’t feel pressured to make a decision right away. By taking your time, you’ll be able to find the best deal and avoid dealer markup.
FAQs Related to How to Avoid Dealer Markup
What is dealer markup?
Dealer markup is when a dealership marks up the price of a car beyond what the manufacturer suggests, in order to make a profit.
Can you negotiate the price of a car?
Yes, everything at a dealership is negotiable – including the price of the car.
What should I research before buying a car?
You should research the make and model of the car you want, as well as the average price for that car.
Should I buy add-ons from the dealership?
If you don’t need the add-ons, don’t buy them – this will help you avoid dealer markup and keep the overall cost of the car down.
What is an out-the-door price?
An out-the-door price is the total cost of the car, including all fees and charges.
Conclusion
By doing your research, shopping around, negotiating, considering financing options, not buying add-ons, taking advantage of rebates and incentives, considering buying a used car, asking for an out-the-door price, and not rushing, you can avoid dealer markup and get a fair price on your new car. Don’t let the dealership take advantage of you – follow these tips and get the best deal possible.