In order to get the best deal on a new car, buyers must have very good negotiating skills, since auto dealership salespeople are usually pretty savvy and use all kinds of tricks to get customers to spend more money than they had originally planned. Here is a list of tips on how to negotiate when buying a car:
Do Your Research and Compare Prices
There are a few ways for out-negotiating salesmen. Car buyers just have to prepare before they go into a dealership, doing their research and compare prices beforehand, so that they can be able to determine the true value of the vehicle they are interested in, and avoid being tricked into paying an unrealistically high price.
Know the Dealer Invoice Price
Buyers should start the negotiation process by stating their opening bid, which should be made after taking the dealer invoice price into account. Knowing how much the dealer paid the auto manufacturer for the car is one of the strongest weapons customers have during negotiations.
Another important tool that could come in handy to car buyers are prices from competing local dealerships, that can be easily found on various auto websites. If they know what a certain car costs at other dealerships, buyers can use that information to create leverage.
The next aspect buyers should focus on is determining exactly what type of car they need, including potential options and add-ons that they might need, based on their preferences, lifestyle and financial abilities. After having determined that, buyers should go online and see the cost of the options they want, so that they can be able to calculate what the total price of the car would be, after including the extras.
Go at the End of the Month
Furthermore, choosing the right time to go to a dealership can prove to be very helpful, as well. Salespeople almost always have sales targets that they have to meet each month, so chances are that they might be willing to offer you a better deal during the last days of the month, so that they get closer to their quota.
Be Prepared to Walk Away
Finally, a car buyer’s attitude plays a huge role in their chances for out-negotiating the dealer. The customer should display a lot of confidence and avoid showing any hesitation in case the car dealer will not negotiate, letting the salesperson know that they are willing to walk out and take their business elsewhere if they don’t get a fair deal. This almost always makes the seller reconsider and offer a discount.
The bottom line is that car dealer negotiation is an art, and buyers should not go about it without preparing first, if they want to be able to negotiate the best car price.