Your negotiation skills are what determine whether you’ll get a good deal for the car you’re buying or whether you’ll dent your bank account. Luckily, negotiation in whatever situation is more of an acquired skill than a natural skill.
That means that with the right tips, and a heap of confidence, you can negotiate your way to a great deal when buying your next car.
Keep in mind that car salespersons are experts at negotiating prices. So in every car purchase, they usually have the upper hand. You’re even more disadvantaged if you hate haggling because the salesperson has the experience you don’t.
Not many people are good at negotiating prices, and even if you’re good at it, there’s always room for improvement. There are effective non-confrontational approaches to negotiating prices that work miracles.
In this brief but comprehensive guide, we’ll highlight how to negotiate the best price for your next car purchase. That way, you’re well prepared for the experienced salesperson, and you can get the best deal possible on the next purchase.
The Right Approach to Negotiating Prices When Buying a Car
Few things are quite as exhilarating as buying your first car. It’s even more exhilarating when you get your car for way less than it typically sells for. Regardless of what car you’re buying, you can get yourself a great deal through proper negotiation.
Here’s the correct way to negotiate prices when buying your next car.
Do Your Homework First
It’s always a good idea to have your facts right before you face the car salesman. That’s why you should always check the numbers and get as much information on the car you’re buying. The internet is an incredible resource for all the information you need about all types of cars.
Most car salespersons start with a high figure and scrape a little off the price, so it seems like a good deal. However, this tactic won’t work if you know the actual value of the car. Knowing your numbers is the basis of good price negotiation.
Try to firmly establish the trade-in value of the car and a rough estimate of the taxes.
Apart from the car prices, you can check out reviews of the car you’re planning to get. You may want to reconsider your decision and maybe opt for a more reliable car. Also, look around other car dealerships and settle for the one with the best service.
Get Your Timing Right
You’re better placed to negotiate the car’s price if you buy it at the right time. Many car dealerships sell a large portion of their cars during summer and spring.
That’s because these seasons present the ideal conditions for driving and traveling. Winter is when most car dealerships will lower their prices so they can at least sell a few units. In fact, time is your best weapon when negotiating your car’s price.
If you can wait, wait till January to purchase your car. Used units usually sell for much less around January. 70% of Americans would consider a used car, so it’s not a bad idea to get a used car at a very low price.
You can try showing up just before closing time, and the dealer will give you the lowest price to get home early. Just pray you don’t stumble across the dedicated salesperson who’s willing to haggle all night. You may end up going for a higher price so that you can go home early.
Explore Your Options
Once you get a quote for your car, you should see what other car dealerships have to offer. That way, you could leverage a better deal at hand when you’re negotiating the car’s price.
Dealers often gauge their selling price from competitors’ prices. So give them a better price that they have to beat, and you’ll get the best deal possible.
However, the price should be a factual price from a reputable dealer. Your car salesperson probably knows all their competitors’ prices. So explore your options, get a better deal, and leverage it to your advantage at the negotiating table.
Try the Disappearing Trick
The disappearing trick is a tactic most skilled hagglers use to get a deal on their car purchase. Midpoint during the negotiation, pretend you’re kicking the tires and disappear abruptly. You can also fake a phone call and do the same.
This leaves the salesperson negotiating themselves down to the lowest. When you resurface, you can reduce the low price offer for the best possible deal.
When you have to leave, the salesperson knocks down the price so you can finish the deal before you leave. It’s a sneaky tactic, but it works most of the time.
Decide on Financing Early
Pre-approved financing can be a secret weapon when you step up to the negotiating table. You can get financing for your car from a bank, credit union, or the car dealer.
With pre-approved financing, the dealership will want to give you financing alternatives with better deals. Without any prior financing, the dealership has no reason to provide you with any financing deals.
However, before you sign any paper, make sure you firmly understand the terms of payment and not just the interest rate. Ensure you know the length of financing, additional fees, and any penalties that may be in the contract.
Negotiate Your Car’s Price First
Buying a car has plenty of other additional costs that add on to the overall price of the car. The best approach is to negotiate the car’s price without the extra costs and trade in factors. Also, try your best not to be too insulting with the first price you set, remember the dealer must make a profit from the sale.
Also, don’t forget about these additional costs when you finally buy the car. Be wary of these costs because that is where most of the profit from car dealerships come from.
Follow These Tips to Negotiate a Good Deal
You’re never too rich or too shy to negotiate when buying a car. With these few tips, you’re all set for negotiating prices the next time you’re in the market for a car. Remember to keep your car negotiations strictly professional and keep your emotions at bay.
Contact us today for the best deals on cars and put your negotiating skills to the test.