How do you win a negotiation when buying a car?
Question
How can I be successful at negotiating the purchasing price of an automobile. I have never come out on top when trying to reach an agreement on the price of a new vehicle. Any tips on how to best haggle the price of a new car with a car dealership?
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Car Buying
2 years
2021-01-08T22:13:26+00:00
2021-01-08T22:13:26+00:00 1 Answer
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Beginner 1
Answer ( 1 )
Tips for Negotiating With a Car Dealer
When buying a car, remember one thing foremost: Car sales is a game and the salespeople are professionals. Matching wits with an experienced sales staff is no easy task. If you want to play the game to win and negotiate the best deal possible, you will need to prepare yourself with as much information and mental practice as you can. Preparation will allow you to avoid the traps that await you and land a great deal on the vehicle you want.
1. Understand your Financial Picture
Before you enter into the realm of negotiating for a vehicle or anything else, you will need to have a clear understanding of your financial limits. Your limit is not merely what you have in the bank and what you earn every month. Your financial limits should be considered alongside your other commitments, any fluctuations in your income or obligations, and other items you will need or want in the foreseeable future. Once you have a clear look at your financial comfort-zone, you will be able to create a strategy for negotiating the terms of your new vehicle.
2. Research the Vehicle
Knowing as much as you can about the vehicle you want will give you an upper hand on the competition. The salesperson is commonly used to being an educator as well as a salesperson. If you enter into the sales arena without any knowledge of the vehicle you are discussing, you will be at the mercy of what the salesperson chooses to tell you. Even the most honest salesperson will try to tailor the information she or he presents to make as compelling a case for you as possible. Your prior research will allow you to see the full picture and know just how remarkable his or her points are during the pitch.
3. Research your Trade-in Vehicle
As much as you learn about the vehicle you want you should learn about the vehicle you will be trading in. The part of a car buying experience that is most heavily subjective is the value of your trade-in. Salespeople will do what they can to limit the value of your trade-in to receive the best deal for their cause. You should find the value of your vehicle from objective source such as Kelly Blue Book. Keep in mind the age, condition and mileage of your vehicle as well as any aftermarket or factory-installed options your vehicle comes with. Find the value of your car in terms of trade-in value and resell value to get a good indication of the range a fair dealer will offer for your vehicle.
4. Establish Boundaries
There are many facets of the negotiation that will appear set in stone by the sales staff. The price, the monthly payments, the finance rate, and even the options are all areas where dealers have latitude with which to work. The art of presenting those areas as rigid is how the salesperson conveys their willingness to go above and beyond to accommodate your circumstances. Do not be fooled. Instead of focusing on what the dealer can change, stake out a rigid position on your own. Clearly define your choices regarding terms and payments, option, color, trade-in value, and any other aspects of the negotiation you control. As you haggle for the parts of the deal you want, relent on your position only if the dealer relents on their position. As long as you are a qualified buyer who genuinely wants to purchase the vehicle, the dealer will be forced to bend toward your position – but only if you present yourself as strident.
5. Play the Role
The most important part of a successful negotiation is controlling your emotions and keeping your message clear. If you say that you are willing to leave the showroom if your terms are not met, you have to project that position consistently. Similarly, if you present an offer to the dealer and intend to complete the purchase if your terms are met, you should express your terms and be sincerely willing to go through with the sale. Again, salespeople are practiced at hiding emotion and keeping secret their full intentions. You will need to rise to a level approaching their expertise to win.