Negotiate with Car Dealers

Negotiate with Car Dealers

Negotiate with Car Dealers : Multi-thousand tips to make your life easier.

Various media, like television shows, movies, and even commercials, portray car dealers as sinister, profiteering individuals who are out to make a quick buck. They are shown as very aggressive in trying to persuade you to buy and in piling on as many add-ons as possible to increase the sale price, and therefore their commissions. Well, not all car dealers are like this. They are honest people, too, who need to make a living, and most will try to be helpful in assisting you with a purchase decision.

As the customer, however, you are of course looking for the best deal. Whether you get a good deal will depend on how well you negotiate. Here are a few insights into negotiating with auto dealers.

Never agree to the first offer. When you're looking to buy a car, the first offer is always made by the dealer. The car may have a sticker price, which is used as a starting point for negotiation. The dealer might also factor in registration, accessories, taxes, and similar costs. As a buyer, your first reaction should be shock and outrage. Say the first offer is too expensive for you. You don't really need extra body trims or faux wood paneling that would cost a few hundred dollars more. You want something sensible and within budget. This should prompt the dealer to shave off a few dollars or offer discounts to meet your needs.

Ask the wife (or the husband). During final negotiations, a dealer's agent will usually get a manager or supervisor to approve the price if it is negotiated down from the suggested retail price (SRP). You can use a similar tactic by deferring the final decision to someone else. For instance, you can tell the dealer that you are interested in the offer but that your wife will not allow you to buy the car at such a high price. This may prompt the dealer to lower the offer further, since they need to please two decision makers instead of one.

Don't offer to split the difference. When you have an offer and the dealer has an asking price, don't offer to meet halfway. That would only mean conceding to the higher price and letting the dealer win the negotiation. Instead, wait for the dealer to offer to meet halfway. Then you can make a counter-offer and meet halfway between your desired price and their halfway offer. You'll end up with a lower price.

Think and rethink. Dealers often take advantage of your presence, knowing they must make a sale while you are there. Once you leave, your interest in buying a car will likely fade. So the offer might be described as limited to today only, or as including certain freebies and discounts if you buy now. But big decisions like buying a car or a home should be well thought out and are best made after a good night's sleep. When you return to the auto showroom the next day, the dealer will most likely give you an even lower offer than the first.

Negotiating with auto dealers can be tricky because they have all the selling experience, often giving them an advantage in pursuing their own ends. If you know how to get around the smooth talk, you can still get a good deal yourself.