When it comes time to purchase a car, you need to have the negotiating power to take down the asking price and fit in a good compromise with the dealer if you need financing. The key is to not pay a big premium when it comes to the down payment and you need to push the APR down to near zero. When it comes down to it, a dealer will be getting your money regardless, but it is a question of how much. Do you want to drive away with the vehicle of your dreams or do you want to drive away with a sour feeling of regret. Here are the top five car dealership negotiation tips.
Have a solid budget all lined up. Having a budget in place will keep you within a certain price range. With a budget, you can reduce the risk of a car dealer pressuring you into a price range you can’t afford. Also, you want to have a budget on your monthly payments as well, because if you don’t consider interest, the car dealer could raise the APR to make up for any “deal” he or she gives you.
Make sure to do your research. The more research you have, the better equipped you will be to counter any false claims. Plus, it will give you a huge leg up when it comes to being able to argue or haggle down a price. Even when it comes to after market add-ons, you want to be able to show the dealer that you can simply go to In Sixth Gear (ISG) to get all the add-ons you need. That way you can get a more fully equipped vehicle for much less money.
Bring backup. Often, a sales person will bring in an extra body to the negotiating table to help counter your counter claims. This can really bring on the heat, but if you want to reduce the heat, you may want to bring on your own negotiating power. So, before you head to the dealership, be sure to bring a friend with you and make sure that your friend stays by your side throughout the negotiating process. Also, make sure that they pitch in if they feel like they have to.
Purchase the car at the end of the year when you have more leeway. Right before car manufactures release a new line of vehicles is when you want to go to a dealership, because this is the time that dealers are trying to get rid of the old and bring in the new. When it comes to negotiating, knowing that the dealer is trying to get rid of the vehicle in the first place can give you an enormous leg up and can save you a significant amount of money.
Make sure that you don’t exude the fact that you have money to burn. If you walk into the dealership with a fancy watch and a new suit, there is a good chance that the dealer will see more of an opportunity, so make sure to dress down, but appropriately and you should be able to get a fair deal.