Car dealers are master negotiators, so it’s no wonder that some buyers, especially first-timers, are intimidated by this part of the process. By following some simple guidelines, you can make negotiating easy. Before you even get to negotiating, compare different dealerships, brands, and styles to select the type of vehicle that’s right for you. Visit multiple car dealers before settling on one and research prices and financing options ahead of time. Never negotiate blindly. The best way to be successful is to be prepared.
Set a Price Limit
Identify your highest possible offer before you visit car dealers and stick to that price. The seller also has a certain quote they’re willing to drop to and they will meet your price if they can. Don’t be discouraged if a seller turns you down, just move on to your next option. It’s nothing personal, car dealers just need be sure they make an acceptable profit.
Talk Selling Price
Even if you plan to finance, make sure you negotiate in terms of overall price. A low monthly payment does not necessarily mean a low selling price. Be aware of exactly how much expense you’re committing to when you purchase a car even if you’ll be paying in installments. When your salesman asks you what monthly payment you can afford, politely considering that you prefer to negotiate in terms of selling price.
The dealer’s cost refers to the worth of a car and it’s easy to find with a bit of research. Finding this number gives you an idea of where to start your negotiations. The dealership has to make a profit, so expect your final price to be higher than your estimate. Negotiate up from dealer’s cost to ensure you snag the dealer’s lowest possible price.
If your salesman denies your first offer, don’t jump straight into a higher one. Wait until the dealer counter offers and make sure you get a number so you can raise accordingly. Most likely, the salesman’s counter offer will be quite a bit higher than your first bid, but don’t be discouraged. Keep your second bid low and continue to raise slowly.
Raise in Increments
Start your bid low and try and keep it that way. Don’t feel pressured to increase in large amounts. Raise your offer in increments of $ 200 or less in a relatively uniform manner throughout the process. Negotiating this way will send a message to the salesperson that you intend to hit their lowest possible price. Dealerships need to move cars and need to make a profit, so by starting your bid reasonably above dealer cost and slowly raising it, you should be able to negotiate a great selling price.
In closing, remember to stay in control of the situation. It’s very important that assert confidence and take control of the negotiation early on. Go in prepared with a number in mind and stick to your strategy. Finding the right ride at the right price may require visits to more than one dealership, but be patient and stick to what you know is a fair price. Good luck!