When you’re buying a car, you’ll need to negotiate a price. Negotiating is a great way to save money on your vehicle, but you need to remember some of these tips:
Know The Car’s Value
Every car has a value in the market. There’s no set figure that determines a car price. Usually, it’s a price range. Some dealers may price a car at the very top end of the price range. You need to know when this is being done. Research the car’s price online so you know the general price range. Say a car’s price is between $8000-$11000 and a dealer is selling it for $10500. You’ll know you can get the car cheaper, so tell him to cut the price down or you’ll go elsewhere. Car dealers make money on sales commission, so they’re desperate for your business. Remember though, a new car will have a different price to a used car, even if they’re the same model.
Negotiate In Person
You should never negotiate over the phone or online, you should always do it in person. Go down to the car dealerships and haggle with the dealers face to face. It’s a lot easier to read someone’s expressions in person. You can see if they’re considering an offer or not by the way they look. Also, you’re putting them on the spot. Have the money with you in person so they know you’re serious. If you’re negotiating online, it gives them time to consider things, and it’s easier for them to be stubborn. When they’re faced with a real person showing real money, it’s much more likely they’ll crack.
Choose A Good Time To Negotiate
As I’ve said, salespeople in car dealerships make money from commission. This means they’re looking to close as many sales as possible. Usually, they’re set monthly targets for sales, so need to reach them. If you go to a dealership on the last few days of a month, you’re in a strong place to negotiate. They’ll be desperate for a few sales before the month is up, so may be more open to negotiations. If you go to a dealership on the last day of the month, they won’t want you to leave without a car. You’ve now got the upper hand because they need you. Use this to your advantage and try and negotiate a deal for your car.
Don’t Give Too Much Away
Car dealers are always looking for ways to get the upper hand in negotiations. Don’t give them anything to feed off. You shouldn’t act like you’re desperate for a car because then they’ll use that to their advantage. Similarly, don’t tell them the max price you’re willing to pay! If they know the max amount you’ll pay, you can bet they’ll end up making you pay it.
Walk Out
If things aren’t going your way, then walk out. Tell them no, and be on your way. There’s no shame in losing a negotiation. There is shame in overpaying out of pride. Plus, there’s a chance they’ll ring you back in a few days if they really need a sale.
Be fully prepared when you enter a negotiation. Car dealers are always going to be prepared; they negotiate for a living. Don’t give them the upper hand, get smart and prepare thoroughly.