Negotiating the Deal You Want

July 27, 2016
Posted by: admin10

Negotiating the Deal You Want

Negotiating the Deal You Want

So, now that the test drive is over and you have decided which car you want to buy, the most important part of the deal is here- negotiating about the car price and trying to bag the best deal possible. In a car buying process that is what everything boils down to- getting the dream car without breaking the bank. Dealerships are there to make profit for themselves and the salesperson will try and involve you in a lot of sweet talk. But, be a cruel negotiator if you do not want to land up paying a lot and your budget going haywire. So, what can the new buyer do to negotiate the deal that they want?

The best place to start off is by finding where you are standing and right at that point what do you have in your hand. Very likely, you will have two things: 

  • You will have an opening bid that will be based on the amount the dealer had paid for the vehicle
  •  A handful of bids from other dealerships

Remember one thing. The price that a car buyer has to pay at the end of the deal will be something in between. This is because neither will be car buyer agree to pay what the dealership wants. Neither will the dealership go down with the price that the car owner will be pushing. So, it will come to an amount that will be satisfactory to both.

Before you are going to the car dealership, make sure that your share of research is complete. You need to know about the current market prices, any offers that the competitor car dealerships are providing and so on. Your ability to show that you are aware of the current market scenario will only help you to grab a better deal as the salesperson will not try to play smart with you.

When you initiate the negotiation on the deal, do not let the sales person start on the price by focusing on the monthly payment or on the vehicle’s MSRP better known as the Manufacturer’s Suggested Retail Price. Also, be careful not to fall prey to the temptations of the special price under the sticker that they show you. And if they even try to bring up the topic of monthly payment, simply turn a deaf ear. By doing so, sales people just confuse the car buyer and bring the entire amount to a big amount, something which is very hard for you to swallow.

The deal is not to hurry, but to deal with one thing at a time. Your priority is to come down to the dealership, have a talk and decide on the lowest price. This is the first thing first, and everything comes later.

So, you can begin by sharing the offering price you have in mind. But, this is not the right time to disclose the other bids that you have in hand. Stick to the figure that you have in mind and disclose that the lowest markup over that amount is what you desire.

Be courteous, confident and friendly in your approach. Do not come across as stingy or argumentative. Try and hold your calm. When asked about your mode of payment, tell them that either you have got a pre-approved loan, or you are willing to pay cash. A finance scheme from the dealership is only considerable if they are willing to offer a competitive rate.

The one reaction that any car owner is likely to get after all this is a no. The salesperson will not compromise and agree with the price you are offering. So, there is no point in driving the negotiation to a point where one will not reach any conclusion. Make that clear and see what reaction the salesperson gives when you talk about moving to another dealership. It is important to hold your ground. Rather than giving in, make the dealership people understand that they will still have a good profit margin in hand and would be making a quick sale too. Plus, they will also make way for other prospective clients to consider them when a successful buyer chooses to spread the good word about them.

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