Planning to buy a car soon? You should know the ins and outs of negotiating with car dealerships. Car dealers are known for doing everything they can to squeeze in every cent from their potential customers. Most of the time, they are successful. For this reason, you need to know what leverage you have so you can get the best possible deal for your new car.
If you’re buying a car from a dealer, here are some helpful negotiation techniques you could use.
Negotiating with Car Dealers
Follow proper timing.
Most people think that car dealers earn profit by being able to sell lots of cars. This is not always the case. The truth is that they earn most of their profits after sales when they are paid by manufacturing companies for hitting specific sales targets. So if you’re wondering when the best time is to do your car shopping, it should be done towards the end of the month ideally. It’s also a good idea to buy a car towards the end of the calendar year as well.
Find out how much the car is worth.
Having an idea about the worth of a car won’t necessarily mean that the dealer will give you that same exact price. But, it’s a good place to start your price negotiation. You can do online research to find the updated value of many cars sold in the market today. You can also cross check with other websites so that you can compare price differences.
Take time to shop around.
There’s no better way to tell if you’re getting the best deal than by shopping around and comparing the car prices offered by each dealer. When negotiating with car dealers and you don’t get a reasonable price, tell them you have a lower offer somewhere else. If you don’t have the luxury of time to visit several dealerships, you can use the internet and contact dealers through their websites. Write down at least three of the lowest bidders and reach out to them by phone or visit them in person.
Avoid those extra items.
If you’re offered a relatively low price for a vehicle, make sure that you don’t get carried away in taking the extra options that could blow up the total price of the car. Consider shopping for the car alone without the add-ons. When you settle on a certain price, you can revisit and reconsider having those extra items added. This way, you’ll have more time to think about what you really need and avoid committing to spending more.
Focus on the price of the car.
It’s very tempting to agree to lower monthly payments offered by your car dealer. But this would mean that your contract is extended to several more years. And if you try to think about it, it will make you owe more than your car is worth even if the dealer offers to reduce your monthly dues. Instead of focusing on the monthly payments, focus on the price of the car and total cost of your car loan
Try to get the extra fees reduced.
When you are finally given your contract, make sure to take a look at the details and the fees including the dealer documentation fee, the regional advertising fee and loan origination fee. More often than not, these charges are non-negotiable. What you can do is to talk to your car dealer and try to request to reduce the price of the car.
Don’t hesitate to say no.
If you think you can’t afford the price offered, don’t hesitate to say no. You can be polite but remain firm in your decision if you think that the car is something you can’t afford. If the car dealer reconsiders your terms, chances are they will call you back. If you can’t decide at the moment, you can also take your time to think and ask the dealer how long he’ll honor the offer. This way, you can be comfortable with your decision should you choose to take the offer.
Doing negotiations with a used car dealer can be tricky. And if you want to make sure you’re getting the best possible deals, these tips can come in handy.