Buying a used or new car can be a daunting process. Here we will discuss some negotiation tactics to get the best car deal. Follow these steps to get the best price.
Know What You Want For The Car Deal:
The first step in knowing how to negotiate with a car dealer effectively is to know exactly what you want. Be specific with exterior color, interior color and options that you want.
Be specific with the terms you want, the length of the loan or lease, the mileage on the lease, the amount of the down payment, etc.
Do Your Research:
Before negotiating for a new car deal, compile as much information as you can get your hands on regarding your new car. Know exactly what the dealer invoice price is, how much “holdback” they will get, if there are any incentives or rebates available to you, a list of all dealers that have the car, a pre-approved loan, etc.
Don’t EVER Make the First Move:
Anyone who knows how to negotiate a car deal knows that you MUST let the dealer put together the first offer. In the car business there is a saying and it is true that if you talk first, you will lose. Remember that you have all the power in these negotiations – you can get up and walk away at any point in time. The sales manager has everything to lose, you don’t have to buy from him; you can go anywhere and negotiate with any car dealer. Make the dealer convince you to buy from them. Make them work for the sale.
Be Patient with the Car Buying Negotiations:
In all negotiations you have to be patient. The dealer is not going to give you what you want on the first go around. If they do, get up and walk away because you haven’t researched enough and you probably missed some incentive or rebate. This is a game, kind of like chess. A game of chess is not won in one move. If the process isn’t going the way you want it to go, leave and come back to try again.
Create a Positive Mood:
Smiling will put everyone involved in the car buying negotiations at ease. Present your offer with a confident smile. Salespeople will not take it personally if you do this in a friendly manner. By creating a positive and friendly communication, everyone will be easier to deal with. Even if your price isn’t reached, you can leave and then come back and the salesman will remember you as a nice customer and not as a difficult one. You get a lot more bees with honey than you do with vinegar. Be positive and smile. It’s contagious.
Be Prepared to Walk Away:
Always know you can get up and walk out of the car buying negotiations at any time. This is vitally important, because there is a good chance you will have to do this. As soon as you get two feet from the door, you will be surprised at how quickly the numbers will come tumbling down. If the salesperson doesn’t chase after you, you probably were at a good deal. Keep in mind the more time a salesperson has invested in you, the harder he will work to get to your price. The sales manager will do the same thing – get him involved early. A key part of how to negotiate with a car seller is to remember that pleasing all parties is important. This is a game and the salespeople want to win that commission every bit as badly as you want to score that car at your price.
YOU HAVE ALL THE POWER:
This is the most important thing to remember in how to negotiate with a car dealer. The sales manager HAS to sell these cars, but you don’t have to buy them – which means you have the upper hand. Don’t let emotions get in the way. The salespeople are trained to push your emotions to get you to buy. Remove your emotional ties to the car before you go. Approach the dealer with this attitude: If it doesn’t work we can always try again in six months – I really don’t need the car right now. In negotiating buying a car, the dealer has almost no power. They have to rely on you to give your money to them. You hold the purse strings and the power; use it to your advantage.