Being prepared is of the utmost importance. Before even going to the showroom, one should first look at the ads in the newspaper and look at car sales at Edmunds.com or a similar website. That will give you an idea what is available and the going prices. In my situation, we actually went to the lot after it was closed and looked at the cars that we liked and saw the prices. One car model had a special discount of $7000. There was also a special for zero percent financing. The next day we called and asked the receptionist about the $7000 discount. She told us that the $7000 discount did not apply if using the zero percent financing. However, she did tell us that there was a $3000 dollar discount if one used the zero percent financing. That was useful information because we knew that the $3000 discount was a given and we would have to negotiate to get a higher discount. If you are not prepared, don't go to the showroom yet. You need to know what you want before you get there.
2.Bring A Friend and Give Him/Her A Role.
Buying a car should be a team effort. Bring a friend or relative or two. In my case, I brought my son and very pregnant daughter-in-law. We each had a role. Whatever was said my daughter-in-law was supposed to say. ?Let's go home and think it over.? Sometimes the deal that the dealer presents sounds so good that it is tempting to accept it on face value. We had agreed beforehand that no matter what the deal was, I would say that we needed some time to think it over and needed to meet in private to discuss further. Our strategy was to have a dollar amount. I did not want to pay over $25,000 for the car no matter what. This kind of negotiation can be very stressful and this is another reason why having friends or family by your side is a plus.
3.Read The Fine Print And Know What All The Costs Are.
When we met with the sales rep, he started talking gibberish about the various costs and it was hard to follow exactly what he was talking about. At that point it is important to use your own checklist and write down all the costs that are being presented and add them up. Don't be afraid to ask what a particular cost item is. Look at the sticker price and all the features that are presented. What are the extra or hidden fees? Maybe there is some leeway. Our strategy was to have a dollar amount that I did not want to go below. I did not want to pay over $25,000 for the car. It did not matter where the discounts came from, but the bottom line or deal breaker was anything above $25,000. As it turned out, this was the last day of the month, which is usually a good time to buy a car because the dealerships are very competitive as to who has the best track record for the month and are sometimes willing to go lower to get the sale so it can be counted in this month's sales
4. Ask for One More thing
I knew which car I wanted and knew that I would probably leave the showroom with that particular car. It was the color I wanted and had the special features that were on my wish list. However, I wanted to get the best financial deal possible. I was not planning on getting financing, but the zero financing was too good to pass up. When I was comparing the price to another smaller and cheaper car, I realized that with the financing costs of the other car, my car was actually cheaper in the long run. If the dealership absolutely says the price cannot go any lower, then see if something else can be added to the deal as a sweetener. Is there an accessory you want that could make the deal more attractive such as floor mats, or steering wheel cover? Be creative and flexible. If there are two similar cars, maybe you could switch to the better car for the price you are negotiating. Maybe you can negotiate service for the car. Your want list is only limited by your imagination.
5.Stick To Your Guns and Don't Say Yes Right Away.
As my mother used to say, it does not hurt to ask; the worse that can happen is that they say no. If you think that they have made their final offer, stick to your guns and try one more round. In my case, I was trying to stay under $25,000. The dealer came back with a figure that was a couple hundred dollars more than the $25,000 with a plausible explanation that this was absolutely the lowest they could go. At that point, part of me wanted to accept that amount and just pay the $200, but I forced myself to say that I wanted the sales rep to go back one more time to see if he could come down to the $25,000. The dealer accepted that offer, probably, because it was the end of the month and the amount in question was relatively small. If they had been resolute on the price, I probably would have paid the higher price but they did not know that.
If you follow these rules for buying a car, you will be negotiating like a pro.
Copyright 2006 Mary Greenwood
According to research conducted by esure, some 26 per cent of consumers would spend less than a hour researching how they are to fund the buying of a new motor vehicle, with respondents more likely to take much time over choosing which model they want. An estimated 19 per cent are revealed to be browsing car showrooms and industry magazines for more than 20 hours to pick out the automobile for them. Consequently, the insurance firm suggested that such a lack of thought into monetary expenditure could see motorists lose out on "considerable savings" or sign up to an unsuitable forecourt finance deal.
The study also revealed a deficiency in the understanding of the financial terms surrounding the buying of a new car. One in 20 people surveyed believed that the expression 'hire purchase' refers to renting a vehicle while away on holiday, with six per cent unable to even make a guess as to what the phrase means. And with the new '57' registration cars being sold from the beginning of next month, Britain's financial difficulties caused by motor spending could be set to deepen.
Colin Batabyal, director of underwriting and business development for esure, said: "As a nation we're always out for a bargain and value for money, yet motorists aren't putting this into practice when it comes to buying a new car. It is crucial for all motorists to do their research before stepping on the forecourt and be one step ahead of the salesman. Being shrewd and shopping around for the best price, finance and insurance deals could slash hundreds, if not thousands off the cost of driving away in a new 57 plate."
Furthermore, just over one in ten (11 per cent) think that the advertised price on a new car cannot be negotiated as it is firmly set. However, men were revealed to be more willing to haggle on the cost of a vehicle than women. Almost four-fifths of males (79 per cent) would barter with a salesperson on a car to get a more competitive deal, in comparison to 72 per cent of females.
Research from the company also showed that 35 per cent of Britons do not think about getting an insurance quote for their new car, before signing on the dotted line. Meanwhile, only 43 per cent would look into finding out what insurance category the vehicle would come under - a factor that esure claims could have "a significant effect" on premiums and in turn drivers' finances.
Earlier this year, Lloyd East, director of personal loans for AA, claimed that too many drivers are opting for a forecourt finance deal instead of a low-rate personal loan due to convenience - a move he claimed is costing them millions of pounds. He added that the "savvyness" shown in how Britons manage the day-to-day costs of running a car is not reflected in the way they choose to purchase them. The study also showed that 20 per cent of consumers are deciding what car to buy on environmental grounds.
Both Mary Greenwood & Mark Dawson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mary Greenwood has sinced written about articles on various topics from Family, Phone Bills and Debts Loans. Mary Greenwood, J.D., LL.M: Arbitrator, Mediator, Author of How to Negotiate like a Pro, 41 Rules for Resolving Disputes Available at