Car Buying Negotiation Techniques

Car shopping, for some, is ranked right up there with a root canal. By learning some simple car buying negotiating techniques, you can make your next shopping experience a good one. Negotiating for a car is manageable as long as you plan ahead and don't give in to pressure from the car sales people. Form your game plan before going in to the dealership to make car buying a breeze.

History

Before the Internet, car buyers had to guess how much a car was worth based off of the Manufacturer's Suggested Retail Price, or MSRP. Car buyers didn't know if the sticker on the car was correct or not. Today, car buyers can use the Internet to find out how much the car they want to buy costs. Search for the car on a neutral website like Kelley Blue Book (see Resources below) and add any options you want added to the vehicle. These prices are close to cost, so expect to pay more for the salesperson's commission. Knowing how much the car is worth will aid you in your car negotiation.

Walk Away

One of the most important car buying negotiation techniques is demonstrating your willingness to walk away. If the car sales person thinks you will walk out the door and buy the car from someone else, they will be willing to negotiate your price down a lot more. The key is you have to follow through. If the car salesperson says they can't meet your price, thank them grab your car keys and walk out the door. Don't stop or hesitate. Chances are they will be calling you within a day or two and will be willing to make a deal.

Options

Armed with the knowledge of the value of the car you can start negotiating with car dealers. One option is to send a fax to all your local dealers explaining exactly what you are interested in and what price you will pay. Let them know you are sending this to more than one dealer and the first one to respond to your offer will get your business. Another option is to look at the dealer's website. The salespeople that you email are sometimes fleet salespeople and can get much better deals than the regular car sales people.

Warning

The negotiating for your new car doesn't end when the sales people meet your price. The financing office is where your negotiating techniques will be used the most. Check with your bank before going in to find out what interest rate they will offer you to finance with them. When the finance people at the dealership offer you a rate, do not accept anything higher than what your bank quoted you. Let them know that you have financing in place already and they will present you with their best rate. Be careful when you work with the financing office. Little add-ons can add up to a high car payment if you aren't careful.

Tips

Ask your car insurance company, bank or auto club to see if they offer any car negotiation services or discounts. Large companies can negotiate special car prices that individuals can't get. Once you know the cost of the car you want from them, go to your dealer and tell them to match it. The salesperson can't tell you there is no way they can sell the car for that price if you have an offer in hand. This also gives your salesperson ammunition for their managers. Car buying negotiation may seem like you are at war with them, when really you all want the same thing. Use that to your advantage when negotiating, nothing like a little competition between the fleet department and your salesperson to bring your price down.

Prepare

Part of the car buying negotiating process is negotiating the worth of your trade in. Find out the value of your vehicle before going to the dealership. The cars on the car dealer's lot are always clean, inside and out. If they weren't you might not be willing to pay as much. Make sure your car is as clean as possible. Vacuum every crumb and remove the clutter. A well cleaned car makes the buyer think it is well maintained. The dealer will be willing to pay more for your trade in if they think it is in better shape. Also, pay attention to how you dress. Don't show up in your grubbiest clothes, how you are dressed can affect the price you negotiate. Why? If you are the type of person who takes care of yourself, you probably take care of everything you own. Their perception of you will affect your negotiating position. A little preparation can save you hundreds of dollars.

Resources

• Get information from Kelley Blue Book