Negotiations make most people feel nervous. I don’t blame them. It takes a special kind of person to appreciate the art of making a deal. If you’re in the market for a car, following these tips will save you tons of cash. Keep on reading to discover five ways to negotiate a good price for a new or used car.
1. Research.
You’ve gotta do your homework. That might bring back bad high school memories, but there’s no way around it.
It’s hard to negotiate when you don’t know key details like the car’s value, prices of area competitors, or how much you can afford.
Spend at least a week researching before you set foot on a car lot. You’ll feel more confident and empowered after you know everything you can about the situation.
2. Stay calm.
Remember this principle: “The salesman always wins when you’re forced to make an emotional decision.”
Good salesmen know how to frame a deal in a way that makes it seem irresistible. If you make a gut decision, you might regret it later. Intuition is awesome in most situations. This is not one of them. Go home and sleep on it.
3. Focus on price.
Car salesmen talk about lots of numbers. Trade-in value, minimum monthly payment, and more. This is a distraction. Only one number matters: how much are you paying for the vehicle?
Don’t worry about the loan payment right now. And don’t let the finance guy talk you into getting a loan from the dealer. Credit unions tend to be more fair and reasonable when it comes to interest rates.
4. Start a bidding war.
This is a brilliant cost-saving strategy that puts you in control of the situation.
First you have to do your research. Figure out what kind of car you want (make, model, year, everything).
Find a few dealers that have the same offer. Write down their prices from lowest to highest. Call and ask for a more detailed quote that includes hidden car purchase costs like dealer fees. If that changed things, reorganize your list.
Now the fun begins. Get those dealers to compete for your business.
Call the dealer that charges the highest price and ask: “What is the best price you can offer for (insert car here)? Your competitor _________ agreed to a price of (insert their best offer here). Can you beat that?”
If a dealer refuses to negotiate, cross them off your list. If a dealer beats the best price, restart this process. Rinse, wash, repeat. Enjoy the savings!
5. Follow-up at strategic times.
If you can’t get the price down to an amount that fits your budget, don’t worry. You’re not done yet.
Dealers are more willing to negotiate at certain times. If you’re in the middle of a rainy or snowy week, call those auto shops and remind them of your offer.
Business slows down during bad weather. Dealers might be willing to cut the cost just so they can meet their monthly quota. Bonus points for making those calls towards the end of the workday (click here to find out why that’s a really good time to buy a car).
Please share this blog with anyone you know who would like to negotiate a good price for a new or used car. They will appreciate the thought. Thanks! 🙂