How to Work the Numbers

How Does A Dealer Work The Numbers: What You Need to Know to Stay On Top

Even when you are set to purchase your next car online, you need to understand numbers to get the best deal possible results.

Traditionally, the process for getting to the best deal on your new car has been determined by the way your dealer establishes numbers on a worksheet. Generally, there is a four-square worksheet used to determine ballpark pricing.

The worksheet dealers use covers everything from monthly payments to trade-in prices.

You need to understand the significance of all of the four squares. Knowing how they fit together, you can get a good handle on negotiating a fair price.

The trade-in is often the first square on the dealer’s worksheet. It refers to the credit they will afford you for your old car. Although dealers generally want you to put down as much as possible, the figure is negotiable. It may not even be required at all if you choose to lease.

The second square refers to the purchase price of the dealer's car, which is the sales price of the car plus fees - sales tax, title, licensing and destination fees. If you have already negotiated your price with AutoBidsOnline, all you need to ensure is you are not paying any extraneous or unnecessary fees.

Finally, you have to factor in the down payment and the monthly payments. Your down payment will figure out how much cash you have to pay up front. Remember, do not use cash to make your down payment under any circumstances! Use a credit card instead. That way you can be sure to get your money back should something go south.

The monthly payments are your fourth square for negotiating. Most care salesmen try to get you to focus on this number, the low monthly payments. You need to scrutinize this number most particularly to factor in how long it is going to take you to pay off the total amount and what exactly that total amount consists of.

Do not get trapped by the four-squares! You might consider selling your old car rather than trading it in. This could save you a lot of money. Another option is to think about securing outside auto financing before you even go near a dealership. This can help you maintain maximum control of the deal, particularly when you are having the dealers come to you online.

By taking advantage of these few suggestions and by knowing how dealers are going to be playing the game, you can get a great deal. But do not, under any circumstances, play the monthly payment game! Instead you focus your negotiations and car search on finding cars that are priced right and the payments will take care of themselves.