When it comes to buying a vehicle, it is extremely important that you are skilled in the art of negotiation. Oftentimes, a car salesman will try to convince you to pay too much for a car so that he can receive a higher commission. Knowing how to negotiate with a car salesman will save you money on your new car and will ensure that you do not overpay for your vehicle.
Research Vehicles Beforehand
Before attempting to enter negotiations with a car salesman, it is essential that you thoroughly research vehicles you are considering buying. Learn as much as you can about the typical sale price and resale value of the make and model. Read reviews of the particular vehicle you are interested in to see what positive and negative things other owners have to say about the car. Edmunds.com is a strong resource you can use to research cars, as the site provides you with all of the essential information you will need, including the average price dealers pay for the cars they sell. When talking to the salesman, use the knowledge you have of the vehicle to your advantage. For example, if the car typically sells at a lower rate, address this fact and try to negotiate the price of the vehicle down until it meets the average selling price. If you see that the car is negatively reviewed by owners in certain aspects, address this with the salesman and explain that you are unwilling to pay more for a car that is rated badly by owners.
When negotiating, it is important to know that some things are nonnegotiable for dealers. They will rarely sell you a car for less than the dealership paid for it, nor will they sell the car so low that they do not receive commission on it.
Use Lack of Features to Your Advantage
If the car does not possess specific luxury features, such as power windows, air conditioning or a CD player, you may be in a prime position for negotiating. Cars that do not have these features do not have as high values as cars that do. When trying to negotiate, express your concerns about the lack of features the car has, and try to talk the price of the vehicle down as a result. The amount of money you can negotiate off the sale price will vary depending on what features the car lacks and how old it is. You may be able to negotiate several hundred dollars off the cost of an older model car that lacks features, whereas you may be able to negotiate even more on a newer car without features as most newer cars contain these upgrades.
Don't Discuss Monthly Payments
One of the ways that car salesman will try to get you to pay a higher price is by telling you what your "monthly payments" on the car will be instead of telling you the actual vehicle price. This selling strategy works by making you think you are paying less for the vehicle than you actually are. Be firm and tell the salesman you are not interested in discussing monthly payments and that you want to know the selling price only. Once you know the total price, try to talk the cost down. A lower selling price will automatically lower your monthly payments if you are not buying the vehicle outright.
Never Appear Eager
Appearing overly eager will put you in a position where you may be taken advantage of. Do not allow the car salesman to see how enthusiastic you are about any vehicle. Stress that you are in no rush to purchase a car, but that you are ready to purchase the car same day if the dealer will accept the offer you make. It is acceptable to tell the salesman you have other cars you are looking at, and are unsure whether the vehicle he is trying to sell is right for you. The less interested you appear, the more eager the salesman will be to negotiate with you to secure your business.