How to Negotiate With a Car Salesman

Tired of feeling you got BURNED? Negotiate like a PRO!

Things You'll Need

• An Internet connection
• A Pre-Approval from a bank.
• A type of car picked out.
• GUTS.

Instructions

1. 1.) You will need to choose a vehicle to suit your needs. Will it be a 4 door sedan, a Sport Wagon, Minivan or Truck? Maybe a sports car?!

2. 2.) Do some research on the makes and models of the type of vehicle you want. Try Consumer Reports, Kelly Blue Book, NADA and Edmunds.

   Check prices, options and incentives. If it's a used car you desire, buy a Car Fax subscription. (Sometimes people will let you use theirs).

   Also, ask around. See if anyone that you know just bought a car.

   Gather all of your information and go shopping!

3. 3.) Look, but don't BUY anything.
   Find 4-5 dealers that have what you want. Try to look around the BEGINNING of the month. Call or Email the internet department and tell them you just want to look and possibly drive one.
   A sure-fire way to get out of committing to purchase: "I am in the middle of a refinance". If they ask when you will be finished, tell them the end of the month.

4. 4.) Go home with all of the information and talk it over with a friend or significant other.
   Figure out what you WANT and what you NEED. Also, try to calculate your payments based on the loan your bank or credit union is offering.
   Once you have all of that nailed down, wait until the end of the month!

5. 5.) The best time to negotiate with a Car Salesman is the end of the month. Most salesman have a quota, even bonuses based on how many cars they sell each month.
   Remember this: The car salesman is a small fish. His Sales manager is the boss. The Head sales manager or the General Manager is his boss. The Owner or Dealership manager is his boss....etc, etc.

   It is MUCH easier to negotiate with the manager or just a "No Dicker" deal (like Costco).

6. 6.) If you have a trade-in, try to calculate it's fair trade-in value with KBB or NADA. If you don't owe much or don't have to sell it, you have the upper hand.
   If you owe more than it's worth, you will need CASH DOWN. If you don't have cash, BE CAREFUL.... maybe now isn't the time to buy.
   So... with your SECRET pre-qualified loan, Your Pre-estimated value trade-in, and your car picked out; it's time to go NEGOTIATE! Remember to clean your car out, gather all of the keys and bring water and snacks....it might be a LONG day!

7. 7.) Go to a dealership on a weekday if possible. If you don't like your salesman.... walk out. If another salesman doesn't chase you down, go to the next dealer.
   Be nice to the salesman. Ask polite questions and tell them that you are there to BUY if everything is agreeable!

   If they have the car you want, ask them if they honor Costco deals (if you are a Costco member), of if they have discounts through AAA, your company, etc.
   If they say no....Leave.
   Next allow them to do what they do, appraise your trade-in, fill out an application, etc.
   NEVER give them YOUR car title. NEVER give them your Social Security Number or other information unless you are READY to BUY right THEN!
   They will use all of these things to negotiate or hold them hostage.
   Try to stay calm and be polite. Fill out everything except your SSN until the end.
   If they push the issue, say: "I am pre-approved through...(name your bank).
   90% of the time, if it's NOT the hottest car of the year, if it's the last 3 days of the month and IF you like the dealership and salesman....you WILL strike up a deal.

8. 8.) Common Pitfalls:
   Remember, they are a business! They MUST make a profit. Don't give in to BULLYING.....LEAVE.
   If they hold your title hostage, try to switch cars, or you feel threatened....leave quickly and CALL THE POLICE!
   Try to stick to your guns on the price you will pay, and what you want for your car....but be reasonable.
   Your car is worth $500-$2000 less than you think it is.
   And by all means... if your are in the finance office, allow them to TRY to beat your bank.
   Finally, try to feel GOOD about your purchase. Buying a New car (or new to you)... should be FUN!

   One more thing... try to buy a CERTIFIED used car with a warranty. They are more money but WORTH IT (as long as it's a reputable certification). With any car purchase, weigh the benefits of extended warranties and protection packages. Most of these are marked up 200% or MORE!

   GOOD LUCK!

Tips & Warnings

• If you like a dealer and salesman STAY LOYAL

• Beware the BAIT and SWITCH

• Trust your "GUT feeling"

• ALL dealers can do the same deal for the most part.

• NEVER do business with a shady dealer

• Try to avoid the NO-Name businesses.

• AVOID BUY HERE, PAY HERE. (Don't say I didn't warn you).