Personally, I hate the negotiation process. It’s always hard for me to be assertive when it comes to asking for a lower price for something. When you’re shopping for a used car, however, it’s expected. In fact, dealers and private owners actually mark the price higher than the car is worth in most cases in order to allow for room to negotiate. So, in some cases, negotiation is your ticket to not only a lower price, but a fair price. Here are some tips to help you make the best deal:
Tip #1: Start low
With negotiation, the first number you offer should be lower than you’re willing to pay, since you’ll probably have to compromise and raise your offer a bit. Although you should start low, however, you don’t want to be insulting. Start in the realm of what someone would pay for the car if it was an amazing beyond amazing deal. If you go too low, though, be prepared for the seller to refuse to deal with you, since it seems like you aren’t serious.
Tip #2: Remember that things other than money can come into play
The price isn’t the only part of the negotiation. For example, maybe you agree to the seller’s price, which was higher than you wanted to pay, but in exchange, you also get free gas from the dealership for the next three months. Or maybe the price is lower, but you agree to drop the year warranty to just six months. Even with private sellers, you can sometimes add other pieces into the equation. For example, maybe you agree to a slightly higher price in exchange for being able to pay some today and the remainder within the next 30 days. Don’t be afraid to get creative.
Tip #3: Be prepared to walk away
If you love the car so much that you’d never walk away, even if the price was ten times the value, the seller will sense that and be less likely to actually negotiate at all. Instead, be prepared to walk away if you can’t come to an agreement on price – and actually walk away. Tell the seller that you need some time to think about it and take a drive around the neighborhood or go home for the night. Be aware that another buyer could come in an steal the car you want with this technique, but most of the time, it is a really effective way to tell the seller that you really will walk away completely if you don’t get a deal on the car.
This guest post is from Allison with CarInsuranceQuotes.net, where you can read more about buying the car of your dreams and find car insurance quotes from multiple companies so you can drive that newly negotiated car off the lot legally.