Must-Know Car Buying Tips for Negotiating

Introduction

Car purchasing is one of the thrilling experiences that come with the territory as well as anxiety. Getting the best price on your new car may seem a daunting task, however some strategies will make it easier and make you get the best deal out of the dealer. 

As a rule, it is possible to cut thousands of dollars off the price of the car under condition of some researching and more effective bargaining.

Don’t Set Foot in The Dealership Without Conducting Your Research Ontvangst

The first secret on bargaining starts much earlier than when bargaining with a car salesman. You have to do your research and find out the recommended market price of the make and model you desire. 

Kelley Blue Book, Edmunds and Consumer Reports make their analyses by taking into account such aspects as mileage, options, condition, location, demand, etc. Compare the prices of the similar vehicle in your region so that you have a definite starting offer that would not be unrealistic. 

This puts you in a better position to make offers right at the onset and not base your price only on the dealer’s quote.  

Shop for Your Car with Financing Approval from Your Bank or Credit Union  

If you’re going to have the vehicle financed through a loan, get a pre approval from a bank or credit union prior to visiting the dealer. 

This way, you are very specific about which rates and what monthly payments you are eligible for based on your credit rating and credit score ratio debts. 

Sellers get most of their profit from the extras such as financing and pushing extras such as warranties upgrades and other accessories having outside financing already lined up. You are in a strong position to dictate that some of these extras are not necessary. Some dealers try to convince a customer to do a higher payment so one should go with a specific amount of money they are willing to spend.

So it is advised to take test drives strategically.

As you shop around for the right car for you, test driving other models is crucial; however the last major test drives of the car model you intend to buy should be conducted when you are almost deciding to buy the car. 

Why? Each minute that you spend actually driving the car is one minute the dealer knows that you are seriously interested in that car model hence lessening your bargaining power. 

Take a test drive right before you negotiate so you have all the cards knowledge wise against the dealer but they have no clue how willing you are to buy their car.

As a rule, it is wiser not to speak of financing or other additional services possible as a part of the cooperation before discussing the price. 

After researching, having outside financing, and taking a test drive there are few things left to do to decide on a car: guess the price. Especially be clear in sticking to the price of the car before the monthly payments, the trade-in value, financing rates, extended warranties, and any other accessory. 

This is much easier because even the issues other than the price of the car can be negotiated for later. You will see the monthly payments being offered by the dealer as a speck of dust from the overall price – do not be fooled.

Consider the Taking of the Whole Price Rather than Monthly Instalments

If there is one thing that dealers prefer that you focus on more than price, it’s monthly payments. Subtracting trade-in from the sticker price will give you the total amount you have to spend on the car out-right before including extras. 

Much as have been elaborated in negotiation, purposely inform the counterparty of this bottom line number and negotiate it hard before moving to discuss financing terms. State that the payments cannot be the determinant of purchase. At the end you can choose whether the total price can allow you to undertake a higher monthly payment or not.  

Offer Below Asking Price

You now have a wealth of data you can use to present an initial offer with confidence and that should be based on real market data. Its’ normal to have some space in businessmen’s negotiations; therefore, open the one below asking price – at least 10% should be given for flexibility. 

The dealer will probably respond by increasing it further so you get to meet halfway. Hold fast to anything that all your investigation reveals as being right. 

Always be willing to leave the table if the dealer does not agree with your well informed offer. Another gang of dealers can always accommodate you!

Compare Prices of the Same Car from Different Dealers

Speaking of other dealers, one little known tip is you can use quotes from a written quote given by one dealer to another.

Any competent sales manager should be willing to at least match the quote of a competitor on an exact model rather than to lose your patronage entirely. 

When you find the specific car of your choice, forward the VIN # to several dealers of the area and then ask for a special written out-the-door price offer. Then go to the lowest quote around and ask if they can match or beat it.

Bring Along Reinforcements

That’s why numbers speak a good word when it comes to bargaining.

If allowed because of COVID, take with the vehicle purchase a friend or a family member well acquainted with cars to assist the client react to discussions, question the dealer vigorously then the dealer may not answer directly to the client, and as an intermediary against forceful bargaining. 

It also helps to have someone there as a sounding board to discuss the options when you have received the dealer’s best offer before deciding to take it or leave it.

Be Prepared To Pull The Plug If The Need Arises

This may just be the single most vital piece of advice as far as gaining leverage against a car dealer is concerned. You are ready to let go of the deal if it does not fit your study done expectations, right?

Then make that clear upfront and stick to it even when the dealer tries to regain control by warning that” this is an emotional decision not a rational one”, raising a price once again or by saying” how much do you really want this”? If they reject your offer anchored on sound research evidence they might be making, then it’s time to leave. 

If it takes some extra patience you will find another car waiting for you out there. You will probably be told by the dealer to come back or to call them should you start walking to the door!

Conclusion

IT will agree that negotiating on anything causes slight stress; however, preparing ahead reduces the pressure of car buying. Exert a lot of effort in deriving at reasonable expectation on price. Keep financing issues separate and ahead of time so you can negotiate just the car all through. 

Cooperative test drives at the right times and the right target. First of all stay on total vehicle price before including other types of monthly instalments and additions. It is advisable to use quotes across the different dealerships to apply pressure. 

Bring a wingman for support. Last of all, ensure that the actions you take mean it when you say that if the well-supported offer is turned down, you will drop out. 

If you follow these tips you’ll be equipped to stand a better chance against your opponent and bag the best possible deal with self-confidence.