Buying a car - negotiate like the dealer

ARe you a negotiator? I mean a real negotiator?

Most 4Ders we know ask for a discount and if the seller says “No” , just say “OK then” ! Negotiating a car purchase is an effective way to get the best possible deal. Here are some steps to help you navigate the negotiation process:

Research and gather information: Before negotiating, it's important to research the car's market value, pricing trends, and any available discounts or incentives. Websites like Kelley Blue Book and Edmunds can provide valuable information to help you understand the fair market value of the car you're interested in.

Set your budget: Determine the maximum amount you're willing to spend on the car, factoring in your financing options, ongoing costs (insurance, maintenance, fuel), and any trade-in value.

Visit multiple dealerships: It's a good idea to visit different dealerships and compare prices and offers. This will give you leverage during negotiations, as you can mention competitive prices you've found elsewhere.

Be prepared to walk away: It's important to have a mindset that you're willing to walk away if the deal doesn't meet your expectations. This gives you more negotiating power and shows the salesperson that you're serious about getting a good deal.

Start with an initial offer: Begin by making a reasonable but lower-than-list-price offer. This gives you room to negotiate upward. Justify your offer by referring to your research, highlighting any flaws in the car (if applicable), or mentioning competitive prices at other dealerships.

Negotiate on the total price, not monthly payments: Focus on negotiating the actual price of the car rather than getting fixated on monthly payment amounts. Dealerships can manipulate monthly payments by adjusting the loan term or interest rate, potentially making the overall price of the car higher.

Consider additional costs: Negotiating the price is crucial, but also be mindful of additional costs such as taxes, registration fees, documentation fees, and add-ons. These can add up and significantly impact the overall price.

Be patient and calm: Negotiations can be intense, but it's important to stay calm, patient, and maintain a respectful demeanour. Being aggressive or confrontational can hinder productive negotiations.

Explore financing options: Once you've agreed on the purchase price, consider financing options. Shop around for the best interest rates and terms. If the dealership offers financing, compare their rates with pre-approved loans from banks or credit unions.

Review the final offer before signing: Carefully review all the terms and conditions, including any warranties, financing agreements, and add-ons, before signing any paperwork. Make sure everything you've agreed upon is clearly stated in the contract.

Remember, negotiating a car purchase requires preparation, confidence, and the willingness to walk away if necessary. By doing your research, setting a budget, and employing effective negotiation strategies, you'll be better positioned to secure a favorable deal.

Our 4D negotiating class is on its way!