The purchase of a vehicle is a major financial decision that can sometimes intimidate those with no negotiation skills. Why? It's because the seller oftentimes has to deal with an experienced salesperson who has years of experience while the average person may buy a car once every four or five years. If the car buyer has to finance his purchase, then the buyer will have to deal with a dealer's financial officer who could end up padding the cost of the vehicle. This is why many people prefer to forgo the dealership experience and opt for a private sale. However, this option may be worse for the buyer. That's because the buyer may have to deal with an unscrupulous seller. Then then there are the nationwide used car retailer with their "no haggle" pricing. What many people don't know is that these "no haggle" prices tend to be higher in price than the retailer. It seems that the car buyer does not have an ally anywhere in the car buying experience. That is why it is important that a car buyer have good negotiation skills.
How to Gain an Edge at the Negotiation Table
Having good negotiation skills doesn't require years of buying experience. In fact, one of the best ways to gain an edge on a vehicle seller is to have information and insights about the seller. Does the seller have a deadline to sell his vehicle? Does the seller have a quota to make with his dealership? How much did the seller himself pay for the vehicle? What is the fair value of the vehicle? Which this type of knowledge in hand, a potential buyer can potentially save thousands of dollars on a vehicle purchase. These negotiation insights will help level the playing field between the vehicle buyer and the seller.
Questions and Answers
To help you better be prepared for getting the best deal on your next vehicle, we have answer some of the most commonly asked questions when it comes to negotiating a vehicle price.
Q: When is the best time to buy a car from dealership?
A: Dealerships and their sales teams rely on quota or sales targets that they must hit by the end of the month. Many times, these dealerships are more willing to negotiate on price towards the end of the month. Therefore, the best time of the month to walk into a dealership is during the last weekend of the month.
Q: How can someone find the true value of a vehicle?
A: There are a number of websites that reveal the dealership cost of a vehicle as well as the "true market" price. Sites like Edmunds and True Car offer free tools that can help the car buyer know how much he should pay for a vehicle.
Q: What's the best price for a used vehicle?
A: It is recommended that a buyer aim for 10% to 15% below the trade-in value of the car. Oftentimes, certain trade-in vehicles will remain on a dealership lot for an extended period of time. And the dealership will be extra flexible with the price on these vehicles.
Q: Is it better to pay cash or finance?
A: Most dealerships make the majority of their profit on the financing side of a vehicle purchase. However, a dealership will be more likely to come down on price for an all-cash buyer.
Q: Is it better to "walk out" on a dealership during a first visit?
A: Yes. It is highly recommended that a potential buyer never purchase a vehicle during a first visit to the dealership. The buyer should make an offer and steadfastly stick to that number. The buyer should then follow up, with the dealership, several days later to hear the salesperson's counteroffer. Typically, the dealership will offer a better price several days later.