Keeping off the grass, maintaining good eating habits and jogging every morning; not just a list of things that require great effort. They're also some of the things that a number of us would rather do instead of negotiating for a car. This is for the simple reason that a car negotiation is what it is, a decision which leaves us with long-term consequences.
Having a conversation with a team of salespersons might make you feel like an amateur. It is as intimidating as facing a pride of lions. However, there are a few tricks that you could use to level the playing field when it comes to getting the right prices. The salespeople grab every opportunity to make as much money from you as they can.
That is before the guy goes in to see a senior team member. Only to come back with a few more charges that force you to dig deeper into your pockets, just when you thought you had a deal. But it does not have to be this way; you can nail an awesome deal if you follow the simple steps we have compiled here.
How should I negotiate?
You probably don't want to. So don't! Salespeople have the upper hand here and will always use it to their advantage. They know the actual amount the car cost the dealership and will keep giving you counteroffers that are meant to milk your pockets dry. Just like a smart gambler in Vegas, you should have an ace up your sleeve. Just have a target figure and stick to it. Decline everything that is outside the fair amount of money you are willing to spend. If your initial offer was a reasonable price for the car, you will probably get a call from your contacts.
What about the car's value?
Know the value of the car you want to buy before going to the dealership or getting into negotiations. If your target car is brand new, get the true market value of the vehicle from the manufacturer's website. There are also many websites that provide the trade in value estimates for old cars as well as their retail values. Either way, make sure you know approximately how much the car is worth. You can never get drunk with too much information, so keep going for it.
Is timing really everything?
Absolutely! Whenever you have the chance, shop for something right before the close of a period. Be it a week, a month, a quarter or even a financial year, it always works to your advantage to shop right before they close. Why you may ask. Well, targets are a pain in the flesh if they are not met and a deal that was not too good at noon could be the one that changes the game in the final 30 minutes of a day for a salesperson. Take advantage of this and shop when they are trying really hard to meet targets with little time in their hands, trust us, they will listen keener than a hunting lioness.
Should I accept financing from the dealership?
The best way to go about it is to secure your own financing, maybe even one from your local credit union. For those interested in the special interest rates for a new car, you have to finance the guy from the dealership. It should not be a biggie though. Just go into that room and say no to everything that does not sound right to you. And do not feel bad about it as long as you remain polite, it is just business, nothing personal. The dealership's finance might help you, although minimally if you have got poor credit history. This does not mean that you owe them favors like purchasing warranties, stick to the plan.
What information should I be ready with?
If you happen to know a friend or family member who recently bought a car, get the paperwork from them and familiarize with it. Knowledge is power, and the salespeople know that you probably buy a car once every five years if it is not your first. On the other hand, they sell several cars daily and are likely to make the paperwork look intimidating if you are not familiar with it. Once you have made your pitch, stay strong and good luck!