In order to negotiate the best deal for your new car, it is important to be as prepared as possible before visiting a car dealership. This is irrespective of whether the car is brand new or second hand. Here are some top negotiating tips that will help you to beat a car salesman at his own game and secure you the best price for your new wheels.
Research, Research, Research
Your salesman will have been instantly sussing you out from the moment that you entered into the dealership. He will be able to notice whether you are naive or not by proxy of the information that you offer him.
If you have researched into the style of car that you want and have sourced a variety of prices and quotes prior to even stepping foot into the dealership, then you should offer this information as soon as possible, referencing his competitors and stating your requirements in a friendly yet firm manner.
You should also know the specifications that are most suited to you, you should avoid being talked into a vehicle with a higher (or even a cheaper) price just because your car dealer wants to sell you that particular vehicle.
There may be all manner of reasons why he is eager to push that vehicle in particular, and these reasons may not always be favorable to you.
If you are part-exchanging your current car, you should also have undertaken extensive research into its worth.
This will also give you that all-essential bargaining power as you will be able to quote your dealership and provide evidence, if necessary, to ensure that you are not being convinced into exchanging your vehicle for an unnecessarily low rate.
It is also important to avoid letting your car dealer know your upper price limit as this will mean that they will be less likely to strike you a better deal within a more reasonable price range.
It is also important to ‘play your cards close to your chest’ if you are a cash buyer. Dealers will make bigger profit off of finance deals and so you should decline the finance offering later on in the process of discussion.
You should also start by offering a lower amount than you are able to pay. This enables you to gradually increase the price on your terms and you will inherently set the conditions from the start of the haggling process.
You should utilize positive affirmations in your discussion, for instance, instead of saying “can you give me a deal?” you should say, “how much discount will you offer me?” This reinstates a purposeful power dynamic that is working in your favor.
As always, friendly and personable interaction is the best way to strike the best deal. Car dealers know that they are often stereotypically viewed as ‘money-grabbing’ and so to put up an immediate affront is perhaps not the best way to approach the situation.
People respond well to people who are firm in their boundaries and yet polite and respectful. You can still haggle without becoming abusive.
It is also important to note that buying a car from a dealership is a far more trustworthy process than if you were to purchase a vehicle privately. Therefore, do not sabotage your own interests by being too limited with your bargaining.
Whilst buying a used car privately will get you a cheaper price, you may be left with a breadth of problems that you are uninsured to protect yourself against. For instance, any technical faults, faulty tyres and an incomplete MOT / service history are all headaches that can be avoided by purchasing from a reputable dealership.
If you do purchase a vehicle privately, you are only protected by your consumer rights and this can be a costly error to rectify. There are some instances when it is favorable to use reputable private sellers but you should always undertake thorough research and read any reviews / testimonials regarding the seller’s service.
When negotiating at a car dealership, try not to overload the salesman with compliments about the vehicle.
Maintaining a cool, calm and collected approach will always win over gushing about how much you “love this car!” This is because dealers know that you will be willing to pay more for a car that you are emotionally invested in and this revelation automatically loses you your bargaining power.
It is also important to avoid using phrases like “I need to buy a car today” as the dealer will play on your time constraints to sell you a car that may not be the best deal for you.
This is because this statement is a ‘red flag’ that lets the dealer know that you are desperate for a car and you will more than likely end up paying more than you originally would have if you’d have kept quiet. Revealing your profession is also a massive faux-pas, particularly if you are in a well-paid job.
Your dealer will make assumptions about your occupation status and will treat your options accordingly. Both his and his manager’s aim is to obtain as much money from you as possible and so revealing that you are an attorney may not be the best move if you are looking to get the best deal possible.
You should also save smaller questions about ‘cup holders’, ‘stereos’ etc. until further into your discussions. This may seem like a weird way of approaching your purchase but the less interest that you show with regards to specificity, the more likely you are to strike a better deal.
To conclude, you need to retain all of your bargaining power by maintaining a calm and composed approach at all times. Overly emotional reactions will only be advantageous to the salesman who is trained to capitalize on them.
Be polite, concise and conduct extensive research prior to making your purchase to conclusively beat a crafty car salesman at his own game.