Before You Visit the Dealership
Things to consider before you walk in the door
1. Set Your Price
The most critical part of the car buying process is establishing the sales price. It is important to understand the difference between the Manufacturer’s Suggested Retail Price (MSRP, also known as the “sticker price”) and the Factory Invoice Price, which is the price the dealer paid for the vehicle.
The invoice price is where you should start negotiating the price of your vehicle – not the price on the window of the car. Negotiate from the invoice price up, not from the MSRP down.
2. Know the Value of Your Trade
Settle on the purchase price of the vehicle you are buying before you discuss whether you have a vehicle to trade. Know the value of your vehicle before going to the dealership.
If you decide to trade and do not owe money on your current car, you can use the full offer price from the dealer as down payment on your new purchase. If what you owe is less than what the dealer offers, they may pay off your existing loan and apply the difference to you as a down payment. Owing more on a trade-in vehicle than it is worth (also known as “being upside down”) weakens your negotiating ability, so it is even more important to establish your purchase price early in the buying process.
3. Complete the Transaction
Select a vehicle and settle upon a purchase price. Your dealer will work with you to finalize your transaction. With RoadLoans, the process is streamlined and simple. You’ll be on the road in no time!