Negotiating the price of a new car can be scary business for many people. There is the stigma that every new car dealership is out there to take advantage of the consumer. While there are probably a few dealerships that don’t have the consumers’ best interests in mind, most do. In order to tip the scales in your favor regardless of the philosophy of the dealership it is important to know what you are doing during the negotiating process. Understanding what you need to know, and what you need to say, can lead to you getting the new ride that you want for a great price. Learning about how to negotiate with these dealerships will give you peace of mind the next time you are in need of a new ride.
Before you start the face–to–face negotiations with the salesperson it is important to arm yourself with pertinent information. Having this information on–hand will give you leverage when you start talking about price. The most valuable piece of information that you can have is the sticker price and the invoice price. The sticker price is easy to find as it is what the manufacturer recommends the dealership sell the car for. The invoice price, however, is a bit more difficult to find. The invoice price is the number that the dealership paid the manufacturer for the vehicle. If you know how much the dealership paid for the car you will be able to determine what the least amount they can let it go for is. And not uncommonly, they’ll even go lower. The best place to uncover what the invoice price for a new car is the internet. There are many great websites out there that will give you information regarding what the manufacturer is selling the car to the dealership for, such as Cars Below Invoice.
After you get all of your pricing information, you are probably ready to begin negotiating with the sales team. It is important to remember that you do not want to seem too eager when approaching the dealership about a special car. To that end, it is recommended that you begin the negotiation process via email. Use your email to introduce yourself to the sales team as well as request a price quote on the new car that you want. You can write down the details that you are looking for in the car without seeming overly eager. Request quotes from multiple different dealerships and keep them handy as you will need them during the face to face negotiations.
Make an appointment with the second lowest quote that you received. Making an appointment with a salesman will let them know that you are serious about the possibility of buying the car from them. Before you even sit down you can let them know that you have been shopping around and that you already have a quote from another dealership that is lower than theirs. Present the salesman with the quote from the other dealership and ask them point blank if they can beat it. A lot of times they will do everything that they can in order to beat the quote of a competitor because they do not want to lose your business. If they cannot beat it you can simply walk out the door and go to the other dealership. If they can beat it, however, you can stay and further negotiate the price. Since you are aware of what the invoice price was on the car you can go back and forth until you get down near that price. It is worth noting that it is very important to stay calm and not act too eager. If the salesman thinks you are eager they may try to stand firm with you. In fact, it is in your best interest to act as if you do not like the car that much. The salesman will innately lower the price as much as he can in order to get you to like the vehicle. More hands-on tips and techniques: Negotiating Tips for New Car Buying and Dealing with the Dealer – Internet Auto Guide
If you do not get the terms that you like it is okay to walk away from the deal. As long as the salesperson has your phone number they will call you when they are ready to talk. Many times by playing hardball when negotiating and waiting out the salesman you will get the best price possible.