Dealing with Car Dealers: 5 negotiating tips
Let's face it, walking into a car dealership with the intent to buy is intimidating. Here are a few ways to tip the scale in your favor when you're negotiating for a car.
Know which vehicle you want first and understand how you're going to pay for it. Check out Wheeling and Dealing: How auto financing rolls. If you don't have a thorough understanding of how cars are financed, including special offers and auto loans, you will not be able to negotiate the best deal.
Always test drive the vehicle before you start talking. There's no point in haggling if you find out you don't want the car after all. If you're using the Internet to research, keep in mind reviews are not a replacement for a real test drive.
Call dealerships in the area and see if they have your vehicle on their lot. Cyber-shop and locate dealerships online. Know what competitors can offer you. Comparing different dealerships gives you leverage when negotiating. "You want how much? That's okay, I'll just walk down the road to Bob's Car Lot—they have the same car for $1,000 less."
Always remember the golden rule of car-buying: First, negotiate the price of the car. Second, discuss financing arrangements. And finally, discuss the value of your trade-in, if you have one. Always keep the three transactions separate; salespeople are adept at giving away with one hand while taking more with the other.
Salespeople want to pressure you into giving in early. Here are a few ways to stay strong:
- Take someone with you if it will make you more comfortable.
- Stay confident and be fair to yourself. Don't let a salesperson talk you into a deal you aren't comfortable accepting.
- If you feel you are not being treated fairly, be prepared to walk out of the dealership.
- Never say "yes" to the first proposal; it will almost never be the best offer. What's the worst that can happen? The salesperson won't budge and you will have to go to another dealer.
Jeff Ostroff of carbuyingtips.com boasts about saving $5500 on a new 2004 Lexus GX470 SUV by negotiating. Negotiating your way to a better deal just takes preparation and confidence - and both of those are free.
Sources: intellichoice.com; bankrate.com; carbuyingtips.com; cars.com<






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