Car Shopping - Putting you in the driver's seat

As Canadians we tend to wear politeness as a badge. And that means many of us feel uncomfortable haggling over prices--unless we’re on holiday in Mexico.

But when it comes to buying a car, there’s never been a better time to barter. So here's some tips to help you go head-to-head with the hardest-selling car dealers and some pointers to make you sound like you’re a negotiating force to be reckoned with.

It's still a buyers market

I recently visited 5 car dealerships to see what I could negotiate. Today even the luxury dealers that "never" moved on their prices years ago are certainly much more flexible.

But that doesn't mean dealing with your car salesperson will be a cake walk. They're still keen to get the most money they can from every vehicle they sell.

So while there are deals out there, you still need to nudge the salesperson.

Where should I start?

I would highly recommend lots of some research before you head out.

During my test shopping, I pretended that I had no preconceived notion of what I was looking for - from a sedan, to SUV to sports car, I let the sales person sell me. The result? I was exhausted and overwhelmed by the time I hit the 2nd dealership.

Check out books like lemonaid or consumer reports to help you narrow down your choices. They’re also jam-packed with information that will help you sound like you know what you’re talking about

From here I have different approaches depending on whether or not you`re interested in a new car or a used one. For new car purchases, at this point I recommend that people head to the company website. This will save you a considerable amount of time and money. Most sites tell you what models and features are available, the costs, loan/lease calculations and more. Plus, by doing some advanced research, you hopefully won't make an impulse buy that you'll regret later.

My most important tip that could save you money and a regretted purchase

A five minute test drive simply isn't enough.

Here's one not many people think of...I recommend renting the car that you're thinking of buying. Once you've nailed down the vehicle you "think" you love and want to purchase, wait, and rent it for a day or weekend.

Doing that can seem like an added expense, but it can also save you money. For example, my sister in law spent two months researching safety, costs, design and more of her vehicle and of course, took the test drive. Two months later, she's ready to take a few thousand dollar loss to trade the thing in because she hates it so much. If she would have rented the vehicle she was going to buy for a day or two and used it as she would have in life, she would have save herself a both time and money.

When renting the vehicle, ensure you use it as you would in real life. Do you travel on the highway a great deal? Lug the kids in and out with hockey equipment or are you an avid golfer? Plus, by trying out several features like a navigational system, sun roof, dual climate control and more, you can truly see what features are essential for you and your family and which ones you can do without.

What if I want to buy a used vehicle?

It's even more essential that you do your homework. With new cars, the price difference between dealerships is fairly slim. With used cars, depending on the make, model and km's, the price difference can be huge. For a used car, you can go to sites like autotrader.ca to get a sense of prices being offered. Ask around for recommendations of a reputable dealers. And wait to find a dream car. You may have to be patient. But you`ll find the right car at the right price.

A finance manager that I spoke with also highly recommends that buyers get their own independent inspection and check out the vehicle’s history using CarProof which can be purchased at a local registry or online from about $35-$65. An inspection can cost $140 - $500, but doing so could save you big bucks in the long run.

So now I have all my information and I'm ready to bargain. How do I start the negotiations?

Today most dealerships are willing to move on everything from sticker price, to free oil changes for life, the interest rate on your lease/loan and more.

To start the negotiating process, simply ask what’s the best price on the particular make you’re looking at. Not every vehicle in any one dealership has the same room to move on price, manufactures rebates, loan or lease rates. Usually the more incentives offered, the less likely that model is selling successfully and that’s why the dealer offering enticements. So although you want to negotiate a great price, make sure you’re not purchasing a vehicle simply on incentives.

Get the salesperson to first give you their best price and then ask for even more. More often than not, the more time you spend with that individual and them with you, the more they’re invested in making the sale. These sale people expect you to barter, so going back and forth on a deal 2 – 5 times is not out of the ordinary.

Since this is such a major purchase in one’s life, don’t rush the process. Time is money, but when car shopping, a little extra time could save you a mint.

Bring a “bad cop” with you or defer to them. If you’re new or a little squeamish at the thought of negotiating, after asking for the best price, let defer to the bad cop for approval.

Lastly, consider making your final purchase near month end. Most dealerships and sales people are looking to fill their quotas and might be able to move on prices even more than usual. Also, some dealer incentives expire at month end as well.