Once you find a used car that you want to purchase, then comes the negotiation process. In the United States, most everyday items that we purchase have a set price, so we are not very familiar with the art of haggling for a good deal. However, car sales people do this every day, and are familiar with the art of haggling, so you need to know how to negotiate as well.
#1 Wait for the Salesperson to Offer a Price
Do not start out by saying what you want for the car. As soon as you make your target price known, you have set the bar on the lowest price that you will accept for the car without even knowing how low the dealership is going to go. The car sales person is not going to suddenly drop the price a thousand dollars after you tell them the price that you will accept for the car.
Instead, ask the car sales person what they are selling the car for, even if there is a price tag on the vehicle. You can ask what their fleet price is or what they are willing to accept for the car; that gives you a starting point where you can work to lower the price from there.
#2 Name Drop
When you are in the negotiation process, be sure to name drop the name of a reputable pricing guide. For example, you might say, "On Edmunds, they have this car in top shape with all of these features valued at $15,000, whereas you are trying to sell this vehicle for $18,000." If the sales person tries to tell you that Edmunds doesn't reflect the current market, ask what they base their pricing on, or mention the price that you saw a similar vehicle at another car lot.
This shows that you have done your research and have been looking at what the market price is. This shows the sales person that you have knowledge and are not going to go for a price that is too high or not worth it.
#3 Don't Stay in the Cubicle
A classic car sales tactic is to leave you in the office while they go to talk to a manager to see if they can get you a better price. Leaving you in the office is a tactic that they use to make you invest your time in the sales process and make you more likely to commit to the process.
Don't stay in the office. If the car sales person leaves, get up and go look at the cars in the lot. Go outside and make a phone call. Go back to your vehicle. You can even give the sales person your number and leave.
Show that you are in control and are also willing to walk away if you don't get the offer that you need. You have to actually be willing to walk away for this to work. Car sales people know that used auto dealerships are a dime a dozen, and that you could easily get a car at your price point somewhere else, so use this information to your advantage.
When it comes to negotiating, don't be the first one to put your price out there. Let the sales person offer the first price, and work it down from there. Let the sales people know that you have done your research and are not buying without knowledge. Finally, don't allow a sales person to leave you in their office; just get up, walk around, or leave if you are not getting the deal you want right now. Leaving doesn't end the negotiation process; often it opens it up for you to get what you really want out of the deal.Share