| Negotiating, haggling, horse trading, whatever you like | | | | that no matter what price they quote you, if you take |
| calling it, is essential when it comes to buying a car. If | | | | that price a few blocks down the road to the next |
| you don't partake, for any reason, then you'll pay more | | | | dealer; of course they'll beat that price (if even by just |
| for the car than you had to. And don't forget, you'll be | | | | a few dollars) just to get your business. So, you can't |
| paying interest throughout the life of your loan on an | | | | blame them for being a bit protective of what their |
| amount that could have been lower. | | | | actual bottom line figure to you may be. |
| Negotiating the price of a car puts a lot of people into | | | | But remember, you control the negotiations. At some |
| their uncomfortable zone. But, it really should not; | | | | point during the car buying process, if you are serious |
| especially today with all of the information available to | | | | about getting your best deal, you will have to sit down |
| the consumer. The key to confidence and a higher | | | | and tell the salesperson straight out that you are a |
| level of comfort comes in the form of knowledge and | | | | buyer and if they will work with you to put the deal |
| research. | | | | together then a deal may very well come together. Be |
| Let's get a bit of a jump start on your research with | | | | very serious about this. Get the car salesperson and |
| some key points to keep in mind when you have | | | | the dealer excited about selling you car not you getting |
| decided that it's about time to change your ride. | | | | excited about buying a car from them. |
| Since there is so much information available to you, | | | | Once the negotiating sleeves are rolled up, you'll want |
| don't try to commit your research to memory; even if | | | | to negotiate from the dealer invoice price up. Never, |
| you are only considering a couple of choices of | | | | never, negotiate from the sticker price down. And |
| vehicles. Take the time to organize your notes into a | | | | never, never, never (notice the 3 nevers!) negotiate, |
| car buying possibilities folder. Make sure that you take | | | | buy, or otherwise discuss or reveal what you'd like |
| your folder with you to the car dealer. Don't be | | | | your monthly payments to be. DON'T even discuss a |
| embarrassed or self conscious about doing this; this is | | | | monthly payment range! You've done your research. |
| a business transaction and you should treat it as such. | | | | You know the numbers. You know that if you get this |
| As a rule of thumb, car dealers have a profit margin of | | | | car for that price; you'll be in budget. Don't discuss this |
| about 10 to 20 percent. The 20% is theirs if you pay | | | | with ANYONE! |
| the sticker price and it's 10% for the car dealer if you | | | | And finally as you move closer to closing the car |
| get closer to the dealer invoice price. Keep in mind if | | | | negotiating, don't pay for things you don't need. |
| you want a specific car with specific options that you | | | | Everyone at a car dealership is tasked with selling and |
| can't find on a dealer's lot and you order the car; you'll | | | | making profit for the dealer. You will, of course, have |
| get exactly what you want, but your ability to | | | | to pay for taxes, registration fees, and destination |
| negotiate the selling price will be greatly diminished. | | | | charges. But don't pay for additional delivery charges, |
| Don't let emotions or car shopping fatigue get the best | | | | handling, marketing, promotional, floor charges, |
| of you. If you find the exact car that you want and are | | | | administrative fees, or any other dealer verbiage for |
| ready to become a buyer, keep you thinking and your | | | | things they are trying to add on to the deal. And be |
| emotions close to the vest. If you find yourself getting | | | | sure to say "thanks, but not thanks" to extras like pin |
| tired and mentally beaten down to where you 'just | | | | stripping, rust proofing, fabric protection, paint sealant, or |
| want to get this over with' take a break or come back | | | | any thing else. These are just 99.44 percent pure profit |
| another time. Remember, emotionally buying a car or | | | | for the dealer. And you sure don't want them in your |
| buying when tired and fatigued will probably cost you | | | | financial contract where you'll even be paying interest |
| money. It's important to remember that you have the | | | | on them. |
| ultimate trump card. You can always walk out of the | | | | In summary, do your research and put your findings in |
| dealership at any time. Without you there is no deal | | | | a folder and use it. Knowledge is confidence and |
| and car dealers certainly know this. | | | | comfort level. Negotiate honestly and reasonably. Don't |
| The early part of the car buying process is getting | | | | toss out ridiculous numbers and expect to be taken |
| competitive prices. This may not be as easy for you | | | | seriously. You want to be taken as a serious buyer. |
| as it sounds on the surface. Selling cars is an | | | | Don't get emotional or fatigued. If you do, take a break |
| extremely competitive business for car dealers. They | | | | and come back later. Be prepared to spend some |
| don't like to give out their 'very best price' over the | | | | time and work getting your best car deal and a good |
| phone or with just a short visit to their lot. They know | | | | deal you will get. |