Buying a new car can be very exciting, but it can also be very stressful. One of the most stressful and unpredictable parts of buying a new car from a car dealership is negotiating with the dealer. The prices of vehicles in a dealership will often be marked up considerably, in order for the dealer to take a commission. If you are a very agreeable person but don’t want to put money in somebody else’s pocket, then you will need to do your best to negotiate.
This article will provide a few useful tips for negotiating at a car dealership:
Instead of visiting second-hand or used car dealerships, visit the main dealer. You are far more likely to get a better deal and not get ripped off there. By visiting the main dealer when looking for a car dealer near you, you are less likely to get inflated prices. In addition, you can also buy used cars from manufacturer dealerships. Not only that but your new car will be protected under a warranty. Used car dealerships do offer warranties, but they are often very short and aren’t up to the standard of a manufacturer’s warranty. Most of the tips mentioned in this article do not apply when dealing with the main dealer, because they will be straightforward, honest, and bound by the manufacturer’s sales regulations.
Whenever you are negotiating for anything, you need to be friendly. With that said, you should also make it clear that you aren’t a pushover. If you are overly friendly and don’t assert control over the conversation, the dealer will try to push you around and will assume that they are in control. In addition, do not tell the dealer what your limit is. If you let them get a whiff of this, then they will know how much they can get out of you and will try to push the vehicle’s price as high as possible.
If you are a cash buyer, then do not under any circumstances let the salesperson know this in the beginning of your negotiations. Instead, wait until you have agreed upon a price, and know where you stand. If you tell the dealer that you are a cash buyer from the beginning, then they will assume that you have more money than you may actually have and will push you higher. In addition, dealers make more money from finance deals, so they will often lower the price more with them than they would with cash deals.
As with any negotiation, you need to start off with a price lower than you are willing to pay. The price will inevitably go up unless you are offering the price that the vehicle is listed for. When you start off lower, you can gradually increase the price toward a figure that you’re comfortable paying. When you start from the price that you’re comfortable paying, you will end up paying more. Sometimes you may get lucky and the dealer may accept your first offer. Sometimes you may have to work at it.
A very common tactic among salespersons is the ‘silent treatment.’ When a buyer makes an offer, they will go quiet, as if they are in deep thought. This is a psychological trick used to get you to offer more. When a person goes quiet midway through negotiation, it’s natural to think that you have ruined your chances of making the deal, so you will offer more. If you make an offer and the salesperson goes quiet, do not say anything until they speak again. Don’t allow their psychological games to work on you.
Making An Offer
When you make an offer, start low [as we mentioned previously]. However, don’t start too low. If your offer is less than 50% of the car’s advertised price, the dealer will laugh you out. Most experts would recommend going between 10 to 20% lower. In the end, you will probably end up paying around 5-10% of the advertised price. In some rare cases, you may get it as low as 20% however.
If the dealer won’t move on the price, then don’t be afraid to walk out. In fact, when you walk out this can often lead to the dealer making you a better offer than you expected. Some car dealers can be very hard to negotiate with though, so if they don’t make you an offer and won’t play fair, then walk out and find another dealership, or go to the main dealer.
Negotiating in a car dealership can be very difficult, particularly if you aren’t a good negotiator! If you follow this article’s advice and play the game, you should be able to get a fair price on the car that you have been looking at. One final tip: Don’t let the dealer know how bad you want a vehicle, because they will leverage this against you.
SUBSCRIBE FOR MORE! HERE'S WHY:
1. You get 7 free books
2. You get the best money & productivity articles
3. You get the latest updates - all in one email per week