Tips for Negotiating with Car Dealers

Tips for Negotiating with Car Dealers

As a rule, managers in a car dealership try to earn as much profit as possible from the client. And in most cases, they succeed even if the buyer does not have the required amount. Sounds familiar? Surely many of our readers bought a new car, for which they paid much more than they originally expected. Why is this happening and how to negotiate when purchasing a new car in a car dealership?

Why do you think car dealership workers almost always try to sell us a car in the configuration that we do not particularly need? The thing is that car dealership managers have a small fixed salary. In order to earn a decent amount, a car dealership employee must fulfill a certain sales plan, according to the results of which he or she receives the main interest to the basic salary. Also, the management gives an indication of which cars, in what configurations and with what additional options must be sold first. So it turns out that often buyers are sold those vehicles that they did not need.

If you think that you are not subject to persuasion and various tricks, then remember that there are such managers who are able to persuade most people to make an ill-considered purchase. Many managers are experienced negotiators and psychologists. They know many different methods to get you into a deal.

We managed to take an unofficial interview with several employees of car dealerships (many of them have been working in this area for more than 9 years), who told us how to behave in a car dealership and how to negotiate competently when purchasing a new car.

We hope our advice and description of tactics on how to profitably purchase a new car from an authorized dealer will help you purchase exactly the car that you really need without overpaying for it.

First negotiations

From the very beginning of communication with the manager, inform him or her that before signing any documents, you intend to show them to your lawyer. The manager will almost certainly ask you for your mobile phone number. Refuse politely. Let them know that you will contact them when you deem it necessary.

You need to know exactly how much the car really costs

If you buy a new car, you need to know exactly the factory-recommended price of the car and the average market average price offered by dealers in your area. To do this, use the official website of the brand (not the dealer) and various car sites on the network, where you can find out the pricing for a new car that interests you. It is also recommended to visit at least 3-4 car dealerships to compare prices and purchase conditions for the same car. Thus, you will protect yourself from overpayment.

Visit a car dealership on Saturday or Sunday 1 hour before closing

If you arrive at this time, you will not give the manager a lot of time, which is necessary to persuade you to buy a car more expensive. This is especially beneficial if you are going to pay for the car. As a rule, on some weekends, sales at a car dealership leave a lot to be desired. If you arrive shortly before closing, you will save yourself from unnecessary conversations and persuasions and it is quite possible that you can get a discount. At the very least, you will protect yourself from buying a very expensive car. When negotiating with a manager, the main thing is to make it clear that nothing keeps you from going to a competing car dealership.

Come to a car dealership on the last day of the month

Typically, each manager has his/her own new car sales plan (month, quarter, half-year and year). Not all managers are successful. Often the volume of sales may not depend on the skills and abilities of the manager (for example, due to the conjunction of the car market). Therefore, if the manager lacks a certain level of sales for the current month, then by visiting a car dealership on the last day of the month, you may be lucky to buy a car much cheaper (not always). By the way, all the managers who communicated with us said that on the 25th, most transactions are concluded without any discounts or privileges. But very often, after a few days, many salon workers are ready to persuade the car dealership management for a discount for the client.

Visit a car dealership if the weather has been bad for several days

A snowstorm, heavy rain all day long or strong gusty, cold winds and other adverse weather conditions can seriously affect the dynamics of new car sales in the car dealership, as the flow of customers decreases in bad weather. Sometimes, with local and temporary drops in sales, the management of car dealerships goes to provide small discounts.

Nevertheless, this factor is not a key factor and it is not 100% guarantee that managers will be ready to sell what you need.

Visit a dealership, go to another and return back

Never buy a car unless you have visited other dealerships. At each visit to the salon, inform the manager that you intend to visit all car dealerships (all competitors) in order to find the best benefit in terms of price and conditions.

Also, be sure to try to lower the price of the vehicle by offering the manager your price. Do you think you can’t bargain in a car dealership? In fact, all dealers are ready to consider any suggestions from customers.

Immediately suggest to the manager that you are ready to buy a car if the price is reduced by $1000-$2000. Very often, the management of the salon willingly goes to such proposals.

This aggressive negotiation strategy will quite possibly save you a significant amount on your purchase. But, remember that time is needed for such a strategy since you should not immediately offer your price for which you want to buy a car.

You need to offer your conditions only after you visit the same car dealership several times and inform the manager (the main thing is that the manager is the same who communicated with you on the first visit) that you visited their competitors whose prices are not higher than theirs.

If you want to buy a used car in a car dealership, then feel free to ask for a discount of 10 to 15 percent since the dealer bought this vehicle at a price below the market price (trade-in program or simply buyout). If you try to make such offers to dealers, then you have a chance to get a good discount when buying a car.

Of course, you can always just agree with the advertised price for the car, which may suit you, but what will it give you? After offering the manager your price for the car, you do not lose anything, but you can only gain.

If possible, do not take a car loan

Try to buy a car with non-borrowed funds or at least reduce the amount of credit financing as much as possible. If you cannot afford to purchase a vehicle for your own cash, then before taking a car loan in Woburn MA, find out all the terms of the loan agreement and the loan rate. Also, consider taking a loan from a bank that cooperates with the dealer. Very often, such banking organizations offer profitable loans with a low-interest rate since the main task for the organization remains the sale of new cars and not earnings on credit financing.

Also, do not take for faith the words of the manager about the profitability of purchasing a vehicle using borrowed funds. Check the information received. If the conditions do not suit you, then inform the employee of the car dealership.

Always be polite

The network often comes across a lot of “harmful” advice, with the help of which you supposedly can successfully buy a car in the dealership. Do not believe this advice, as they are all crude negotiation methods. It will not lead to anything good.

Remember that we are all people. Car dealership managers do not deserve a rude attitude, although their goal is to get you to spend as much money as possible. But that’s their job. Therefore, be polite when dealing with them.

In return, you will receive an appropriate attitude, despite the fact that the employees of the dealerships are trained in the rules of conduct at work. But, nevertheless, everyone’s nerves are not iron. This is human nature.

Inappropriate behavior in a car dealership and rude conversation can lead to the fact that your issue can be resolved for hours. And you cannot do anything. If you think that your complaint will result in the firing of a valuable employee who knows how to sell cars and bring millions of dollars in profits to an automobile company, then think, would it be logical?

Therefore, when speaking with dealers, be polite and treat people with respect. If you are a good person, then for sure you will be rewarded for your behavior, and you will be able to purchase a car at a bargain price.

Moreover, in recent years, many car brands have paid dealerships, and they, in turn, pay various incentives for their employees. For example, rewards for loyalty and positive customer reviews. If you behave in an appropriate manner, the manager can receive some kind of bonus for his/her work and positive feedback from the client. In this case, the car dealership employee will treat you better and probably offer you something interesting or tell you information about the car that you don’t know anything about.

In conclusion, we wanted to say that buying a new or used car is not an easy task. There are many factors to consider that can affect the correct choice. But by following our simple tips, you can really save a lot. And if you want to buy a car in a short time, then many tips cannot be applied since they require time.