Car Negotiation 101: Read This Before Buying Your Next Car

Buyingacarcanbeanexcitingyetdauntingexperience,especiallywhenitcomes toCarNegotiation101.Manypeoplefeelintimidatedbythethoughtof negotiatingwithacarsalesmanandenduppayingmorethantheyneedto. However,withtherightknowledgeandapproach,anyonecannegotiateagood dealonacar.Inthisarticle,wewillprovideyouwithacomprehensiveguideon carnegotiation,includingtipsandtrickstohelpyougetthebestpossibledeal.

Research, Research, Research

Beforeyouevenstepfootonacarlot,itisessentialtodoyourresearch.Startby researchingthemakeandmodelofthecaryouareinterestedinbuying.Lookup

theaveragemarketpriceandcompareittothestickerpriceatthedealership. YoucanuseonlinetoolslikeKelleyBlueBook,Edmunds,orTrueCartogetan ideaofwhatthecarisworth.

Additionally,youshouldresearchthedealershipyouplantovisit.Lookup customerreviewsandratingstogetanideaoftheirreputation.Checktoseeif theyhaveanyongoingpromotionsorspecialsthatmaybenefityou.

Pre-Qualify for Financing

OnewaytogainleverageinCarNegotiation101istohavepre-qualified financing.Havingapre-qualifiedloanmeansthatyouhavealreadybeen approvedforaloanatacertaininterestrate,whichgivesyoubargainingpower withthedealer.Youcanusethistonegotiateabetterinterestrateorpricefor thecar.

Topre-qualifyforfinancing,youcanapplyforaloanthroughyourbank,credit union,oronlinelender.Makesuretoshoparoundandcompareratesbefore choosingalender.Onceyouhavebeenpre-approved,youwillreceivealetteror certificatethatyoucanpresenttothedealership.

Visit Multiple Dealerships

Visitingmultipledealershipswillgiveyouabroaderperspectiveonthemarket andincreaseyourbargainingpower.Itallowsyoutocomparepricesandoffers fromdifferentdealershipsandgivesyoutheabilitytonegotiatewithmultiple dealershipssimultaneously.

WhenvisitingdealershipsforCarNegotiation101,makesuretotakenotesand askforwrittenquotes.Thiswillallowyoutocompareofferslaterandprevent anymisunderstandings.

Timing is Key

Thetimingofyourpurchasecanalsoaffectyournegotiatingpower.Generally, theendofthemonthortheendofthequarterisagoodtimetobuyacar. Salespeoplemaybemorewillingtonegotiatetomeettheirmonthlyorquarterly quotas.

AdditionallyforCarNegotiation101,purchasingacarattheendofthemodel yearcanalsoworkinyourfavor.Dealershipsareoftenlookingtoclearoutold inventorytomakeroomfornewmodelsandmaybemorewillingtonegotiateon price.

Be Prepared to Walk Away

Oneofthemostimportantthingstorememberwhencarnegotiation101istobe preparedtowalkaway.Ifyoufeellikeyouarenotgettingafairdeal,don’tbe afraidtowalkaway.Rememberthatyouhavethepowerasthebuyer,andthere arealwaysotherdealershipsandcarsavailable.

Walkingawaycanalsobeagoodnegotiatingtactic.Ifthesalespersonknowsthat youareseriousaboutyourbudgetandarewillingtowalkaway,theymaybe morewillingtonegotiatetokeepyouasacustomer.

Car Negotiation 101 Strategies;

Nowthatyouhavedoneyourresearchandarereadytonegotiate,herearesome tipsandstrategiestohelpyougetthebestpossibledeal.

1. Start with an Offer Below the Asking Price

Whenyoustartnegotiating,itisessentialtomakeyourfirstofferbelowthe askingprice.Thiswillgiveyousomeroomtonegotiateandmaypreventthe dealerfromstartingwithahigherprice.Makesuretobaseyourofferonyour researchandknowledgeofthecar’svalue.

Don’tbeafraidtoaskforalowerprice,evenifthesalespersontellsyouthatthe priceisfirm.Rememberthateverythingincarsalesisnegotiable,andthedealer maybewillingtolowerthepriceiftheythinktheycanmakethesale.

2. Counter-Offer with a Reasonable Price

Aftermakingyourinitialoffer,thesalespersonwilllikelycounter-offerwitha higherprice.Don’tbediscouragedbythis;itisanaturalpartofthenegotiation process.Counterwithareasonablepricethatisstilllowerthantheaskingprice, butnotsolowthatitisinsulting.

MakesuretobefirmbutpoliteinyourCarNegotiation101.Youwantto maintainagoodrelationshipwiththesalespersonanddealership,asthismay comeinhandylaterinthenegotiationprocess.

3. Use Trade-In as a Bargaining Chip

Ifyouaretradinginyouroldcar,useitasabargainingchipinyournegotiations. Makesuretoresearchthevalueofyourtrade-inbeforegoingtothedealership, soyouknowwhatitisworth.

Forcarnegotiation101,startwithahighaskingpriceforyourtrade-in,andthen workyourwaydown.Ifthedealershipisnotwillingtogiveyouafairprice, considersellingyourcarprivatelyorthroughathird-partycompany.

4. Negotiate Add-Ons Separately

Dealershipswilloftentrytosellyouadd-onslikeextendedwarranties,rustproofing,andotherextras.Whilesomeoftheseadd-onsmaybeuseful,theycan alsobeexpensiveandnotworththecost.

Ifyouareinterestedinanyadd-ons,negotiatethemseparatelyfromthepriceof thecar.Makesuretoresearchthecostoftheadd-onbeforehand,soyouknow whatafairpriceis.

5. Check for Incentives and Rebates

Makesuretocheckforanyincentivesorrebatesofferedbythemanufactureror dealership.Thesecanincludethingslikecashback,low-interestfinancing,or discountedprices.

Ifyoufindanincentiveorrebatethatappliestothecaryouareinterestedin, makesuretofactoritintoyournegotiations.Itmaygiveyoumorebargaining powerorallowyoutogetabetterdeal.

BOTTOM LINE

CarNegotiation101canbeintimidating,butwiththerightknowledgeand approach,anyonecangetagooddeal.Remembertodoyourresearch,visit multipledealerships,andbepreparedtowalkawayifyoufeellikeyouarenot gettingafairdeal.Usethenegotiationstrategieswehaveoutlinedtohelpyouget thebestpossiblepriceforyournewcar.Byfollowingthesetipsandtricks,you cansaveyourselfthousandsofdollarsanddriveawaywithacarthatyoulove. Also read: How to Negotiate with Phone System Companies?