Let's get something straight: car price negotiation does not have to be as painful and as tedious as some people would lead to believe. It also doesn't have to be a big waste of time. The key to successful negotiation is knowing exactly what to do once you get into the dealership. You should not allow yourself to be swayed by the car salesman who is trying to sell the car at the dealership price. You should have a plan before ever walking in and you should be prepared to stick to the plan no matter what.
We will be going over several successful car price negotiation strategies. If you can master these techniques, you'll have no problems getting a car at a price you want.
Technique #1: Know the Value of the Car
Car salesmen will often try to talk customers into buying a car for more than it is actually worth. This usually works because the customers haven't taken the time to look up the car in question on something called Kelley Blue Book. The Blue Book tells the value of any particular model based on mileage and features. It's an unbiased, free way of seeing exactly what a car is worth. It also allows you to ?correct? the salesman if he or she is trying to sell you a car for more than what it is worth in KBB.
Technique #2: Ask Them If They Can Do Better
The car salesman states that he can give you the car for $8,000. This is more than you are willing to pay. A simple way to get him to lower the price is to ask ?is that the best price you can give me? That really is more than I am willing to pay.? It seems like an obvious question, but it's something people usually don't think to ask and it can be quite effective.
Technique #3: Threaten
No, we don't mean that you should threaten the salesman with violence. Instead, you should inform them that you've seen a similar vehicle at another dealership for x dollars less than the car at this dealership, and that if they aren't willing to lower the price, you'll take your business elsewhere. Since sales is such a competitive field, many salesmen will lower the price if they know it means a sure sale for them.
Technique #4: Meet in the Middle
Let's say you're negotiating over a $7,000 car. You want the car for $6,000. The salesman says he can't sell it for that low. You now have two options: walk away or compromise. Tell him that you're willing to split the difference and pay $6,500 for the car. In most cases, he'll take the offer because he knows you won't go higher and he won't go lower.
Technique #5: Don't Budge
Salesmen are trained to do one thing: to sell the product. They'll do anything to sell the car, even if it means intimidating a customer. Do not allow yourself to be intimidated by a pushy salesman. If he's trying to persuade you to do something you don't want to do, such as buy a car for more money than you're willing to spend, tell him that you will not budge. If he keeps trying to get you to budge, just leave and take your business elsewhere.
Technique #6: Leave
If the salesman will absolutely not budge, thank them for their time and tell them you're not willing to pay their price for the vehicle. Then get up and walk away. This creates a sense of urgency for the salesman. He'll then usually get up right away and may block you from leaving. He'll also try his hardest to cut a deal with you?perhaps at the price you desire.
The first trick to know when preparing for car price negotiations is to know the starting price of the car. Initially, this means doing some research in the manufacturer's suggested retail price of the car.
It is also important for car price negotiations to know what the car is selling for in your region. For example, several years ago, when the Toyota Prius was new to the American market, the suggested retail price of the car had nothing to do with its actual selling price.
Because the car was in high demand and low supply, dealers were able to negotiate prices much higher than the standard asking price. The smart car price negotiator will be aware of these trends and either accepts that added cost of the car or opt for a car in lower demand.
The second trick to know is that you should also have the invoice price of the car in hand when begging your car price negotiations. A smart negotiator will know that the invoice price is not what the dealer paid for it; invoices reflect the price the dealer would have paid if not for incentives, rebates and factory deals for the dealership.
This is important to know in car price negotiations because some novice negotiators will fall for the ruse that they are getting a good deal since it is close to the invoice price. Remember, the invoice price is not what he paid for it and getting him to sell you the car ?below invoice? does not mean you are driving the dealership into bankruptcy. The third trick smart car price negotiators need to know is that they should begin negotiations based on the theory that they will pay cash for the car and that there will be no trade-in. In an era of revolving credit, most car price negotiators do not understand that the trade-in allowance is often figured in by less scrupulous dealers and the base price of the new car is increased.
In addition, car price negotiators must be aware that some car dealers will also hide increased car prices in the financing. To avoid this, negotiators must be willing to discuss car prices as though financing is not necessary.
The person negotiating the price of the car must also be able to talk the jargon and be familiar with standard options packages. For example, a dealership might try to charge individual option costs for upgrades including automatic transmission and air conditioning and power windows even though all three are typically packaged together and sold to him at a discounted rate.
The negotiator should also clarify whether the price he is discussing with the car dealer includes all taxes and fees associated with the closing of the purchase of the car. Many first time new car buyers are surprised by the fees that are added on the car cost after the price has been discussed. Such fees usually not included in the car price negotiations include state sales taxes, license transfer fees, and freight costs.
Finally, a car price negotiator must understand the fine art of negotiation and the reality of how little negotiation actually takes place. He must be willing to discuss getting adding option without price increases and must also be willing to put his foot down when the salesman tries to increase the cost and value of the car by adding no options that the new owner neither wants or needs.
Dennis James has sinced written about articles on various topics from Cars, Auto Insurance and Used Car. Dennis runs Check which has independent Car Dealer Reviews written by the car dealerships customers and information on. Dennis James's top article generates over 246000 views. to your Favourites.