How Canadian Dealers Get Rid of Unsold Cars
October 30, 2019
How often do you buy or lease a new car? Perhaps, yearly or every 3 years? You’ve no doubt heard those loud car commercials during holiday weekends, but what happens when a dealer can't sell those cars after the advertised sale?
Here's the secret that dealerships don’t want to tell you—and why getting that perfect vehicle is FAR CHEAPER than you ever imagined (if you know where to look)!
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Before you get suckered into that negotiation game, we want to show you the MASSIVE discounts being hidden in online pricing with vehicle bonuses that are hard to find.
Some manufacturers offer up to $3,500 in price savings with interest rates at 0% or 1.49%.1 But you should save more because... the dealership is getting incentives to clear out the stock. When you see these discounts on a car, this is when you let the Internet negotiate for you.
Because of these many offers and bonuses, now may be one of the best times to purchase a new vehicle and take advantage of current promotions.
Here's how to get the best price from the dealer.
Step one to negotiating is... don't negotiate. A common mistake is to accept counter offers or to simply ask for 10% off. You must come into the dealership with a set price you're willing to pay. If you want to know if that price is reasonable...
1) Go online and find the lowest (already) negotiated price.
Using the button below, you can check if there's any online deals. If you don't find any local deals, check for dealership pricing in other cities. If you find lower pricing at another dealership, print out that quote.
If the prices aren't listed on the website, email the dealer stating that you're comparing prices and you want to know if they have an online special.
2) Bring the online quote to your local dealership.
They will most likely match that offer. This proves to the salesperson that you are a serious buyer and are ready to make the sale. But it also shows you are savvy and know what the pricing should be.
If they don't accept the offer, politely decline counter-offers, provide your phone number, and say good bye. If they don't follow-up or accept your offer, follow up when your salesperson is desperate. This can be on Saturday or Sunday night just an hour before closing. You can also follow up on the last of the month (since there's sales pressure from management every month) and also on days with terrible weather.
You can repeat this process with another dealership too. If you want to check what you could pay...
Optional tips if you're going to lease your car
Virtually every car dealership offers their own financing. They may provide a better rate than your bank, but it's also part of the negotiating process.
Many auto manufacturers will provide leasing incentives of 0% APR for a year. Afterwards, you'll want to make sure you can get that rate low or finance with another lender.
Here's how you negotiate that leasing rate: Get a financing quote before you arrive at the dealership. When you bring your own financing, a salesperson knows that you're no longer dependent on their bank's financing approval. The salesperson still wants you to use their bank because they usually get a commission on the loan. They will typically work hard to beat your interest rate.
Since dealerships profit from you using their financing, they'll often offer bigger discounts if you finance through them. Getting a quote before showing up still gives you the advantage.
You need to get dealer's special online-only pricing (this avoids the headache of in-person negotiating). And, make sure you're looking for timely manufacturer discounts.Search listings in ads