While most of us readily haggle over the price of vegetables or the cost of an auto ride, we’re convinced a car dealership demands too suave a temperament to bicker over prices. It may come as a surprise to some that most fertile opportunities to save a pretty penny present themselves at the dealership. It’s hard to pin it down to a science but the ability to drive a hard bargain comes down to beating car sales executives at their own game, which is no mean feat. Buyers can derive comfort from remembering that a salesman can’t talk you into a deal without your express consent.
In order to be able to confidently parley over the price of your dream machine, begin the process of studying the negotiation beforehand. This allows for making an informed decision exactly how good a deal you’re getting on the car and how much further you can push to drop the prices. Thus may start with things such as surfing around the internet to get information on the prevalent market prices, loan rates, and potential seasonal discounts. Once that’s out of the way, it’s all down to how well you’re able to wrangle with your car salesman.
Here are few tips to keep in mind when negotiating with a car dealer:
1. Scour the internet for data such as the invoice price paid by the dealer to the manufacturer. Also check out any rebid information and hidden incentives with the dealer. Keep in mind that the minimum dealer profit is usually 3 to 5 percent. Make a calculation of a fair price for the car based on the information you gather. Doing your homework helps you be more convincing since you’re convinced yourself exactly how much you think the cost should be.
2. Do not get carried away with everything the dealer tells you. He might present you with a work sheet when you sit down with him to negotiate. This work sheet would constitute of purchase price, down payment, monthly payment and trading value. But by now we know better than to be hoodwinked by a bunch of numbers arranged to make it look like the car is being sold at close to no profit. This is where you recollect all the hard work you put in earlier and talk the numbers you’re interested in.
3. Resist negotiating solely based on the monthly payment without contemplating swelling interest rates or stretched out terms. Monthly payment results from the down payment, long term and interest rate.
4. Remember to always have your game face on in order to throw salesmen off their own game. React with sarcasm and surprise to initial pricing estimates in order to show from the outset that you’ve got a plan . Dealers try to create a pressure cooker sort of situation for buyers in order to force the impulse buy. Stave off any attempt to get you to close the deal in a short span. The longer you keep at it, the better chances you walk away with a good deal.
5. Another important think to remember is not tell one dealer about another dealer’s quote. This may seem like a good tactic but it’s the oldest play in the book and nobody’s falling for it. There’s also the fact that bringing up another dealer is only going to make the one you’re interacting with think about his own results in the light of another dealership, which is not what you want. Though you may be at loggerheads with each other for a while, make sure to keep the conversation amiable.
6. Don’t forget to mention you’re prepared to discuss an acceptable trading price for your old car. Even if there isn’t an official exchange program, it’s worth a shot. But first, be sure you have a satisfactory price on the new car. Exchanges tend to take the biggest chunk off the price of a new model.
7. Be prepared to walk out if the dealer makes the price non-negotiable or if there’s too much acrimony for the bargaining process to continue. Doing your due diligence will help you be sure when exactly it isn’t too dramatic to leave as a result of getting a raw deal. But before you storm out, make sure to pose a yes/no question with the price you have in mind. This can often lead to a sudden relenting on the dealer’s part. Secretly pat yourself on the back once the dealer walks away to get your paper’s ready.
8. Expect an on spot of fees and extras just when you think you’re done. Although having to remit some amount might be unavoidable, most such fees can be dodged. Most times the extras are unnecessary and overpriced. In order to be sure exactly what fees are obligatory, make sure to talk to someone who’s made a similar purchase before or fall back on research off the good ‘ole internet.
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