One of the most intimidating steps in the car-buying process is price negotiation. If you’re a first time car buyer, here are some tips to keep in mind when you’re shopping.
Have a strategy
If a salesperson doesn’t take you seriously, he or she won’t budge on the price. Just as he or she has to get a price approved by a manager, you should not accept a deal until it meets your terms and you get the car you want. That is not to say that you can’t adjust your requirements, but having a plan ahead of time can make the negotiating go more smoothly.
Be prepared
Do your homework so you know the cost of the car you want. There are many resources and web sites that can help you determine the dealer invoice price and other factors that give you a leg up in negotiating. After you do your research, come up with a target price that includes all the options you want.
Don’t agree to the first numbers
Chances are slim that the first figure a salesperson comes up with is going to be the best you can do. Buying a car is a big deal and you should not be afraid or embarrassed to reject the first numbers you come across if they are not close to what you’ve determined as your target price in your research.
Get preapproved for a loan, if you need one
If you’re preapproved when you walk in the dealership, all you’re negotiating is the final cost for the car. Don’t let the dealer talk monthly payment – if you’re preapproved you already know what your monthly payments will be. Instead, agree on the car’s final price. The dealership will likely want to see if it can beat the terms on your preapproved loan. Remember, you can choose who you want to get a loan from, so make sure if the dealer offers financing that it is truly a better deal that what you’re already been offered.
Shop smart
Dealerships have sales goals, and there are often incentives for salespeople when they reach their goals. Some experts say that shopping at the end of the day and at the end of the month can help you get the price you want. Also, keep your eye out for holiday and year-end deals. These specials can save you some money on the car you want.
Also don’t forget that you can avoid negotiation altogether. You can hire a buyer’s agent, who will negotiate prices for you, though you’ll have to pay them a fee for their service. There are also some used car dealerships that have no haggling policies. That means the price they quote you is the best you are going to get at that dealership, so you can save yourself to trouble of trying to negotiate a better deal.
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