5 Tips for Becoming a Master Car Deal Negotiator
5 Tips for Becoming a Master Car Deal Negotiator
Negotiation does not have to be a chore.
Does the idea of haggling over a car give you the willies? You are not alone. Many hate the very idea and wish haggling was not part of getting the best price. If you have to haggle, here’s how to do it the smart way.
Do Your Research
Start with knowing the numbers. For instance, the Manufacturer’s Suggested Retail Price, or MSRP, is not the real cost of the car to the dealer. What you want to consider is the “dealer cost”, or what the dealer actually pays for the car on the lot. A good price is 3 to 5 percent above dealer cost, and there are plenty of tools available online to help you track down dealer cost and the average selling price of a car in your area.
You should also know the numbers regarding excise taxes, fees, and other costs tied to buying a car; know exactly what you are paying before you buy.
Also, it is important to research your possible dealership choices. You are going to be going into business with them for at least a few years, and you should not work with somebody with whom you do not have a good first impression.
Check Your Budget
While you should not negotiate based on monthly payment, you should know your budget before you walk onto the floor. If the salesman will not work within your budget, then why bother talking to him?
Get Financing First
Remember that the car and the auto loan are two separate products; they are not necessarily a package deal. Many dealerships only work with one or two financial institutions, and securing your financing first lets you shop around for the best deal and also takes away a huge chunk of the haggling. Instead of buying a car and a loan, you are just buying the car.
You can get to “yes” without losing your patience, or even more than half an hour from your day.
Do It Online
Maybe you are just simply not your best when talking to others. If that is the case, look for dealerships that sell cars online with a digital sales department. You can conduct negotiations via email instead of in person, and you can get things in writing. That way you can do it at your own pace, in your own way. All you will need to do in person is the test drive.
Do Not Hesitate To Walk Away
Another thing worth considering is that you are under no social obligation to a salesperson. Salespeople will do everything they can to get to “yes” on a deal; it is their job, after all. However, they simply might not be able to meet your needs. It is not their fault; they have a business with certain obligations. If it is clear that things just are not going to work out, if you have spent two hours haggling, if the salesman is resorting to high-pressure tactics you do not like, or if your gut is telling you that this is not right for you, then leave. Thank them for their time, of course, but walk out. It is better to take your leave than take a hit to your wallet.
Negotiating for a car does not have to be a nightmare. If you do your research beforehand, stick to your guns, and only work with dealers with whom you want to do business, you will be able to land a car with ease. Get started with research from CarFoundMe.