Negotiating Tips
How To Negotiate Your Best Deal
Negotiating is virtually essential, or you'll pay more than you
really need to. And then you'll pay interest on that higher price.
Dealing with a car dealer scares a lot of would-be customers when it
need not. The key is doing your research on the vehicle of your
choice before you go to the dealership.
When you are dealing with car dealers, it's hard to recall every fact
you've researched, but keep these key points in the back of your
mind:
Dealer profit margins
Dealers have a profit margin commonly between 10 percent and 20
percent. Usually, this is the difference between the sticker price
(the price they want you to pay) and the invoice price (the price
they paid for the car).
Also, a dealer has rebates of 3% or more of list price that lower
their cost even further. That's why they can sell for invoice cost
and still turn a nice profit. See Car Shopping Help to
lookup dealer
invoice prices.
Order your exact choice
If you don't see exactly what you want on a new car lot, consider
ordering it. This may take time, but at least you'll be paying for
what you want and not paying for extras the salesperson talked you
into.
Consider a second choice
Now reverse that last idea. If you are sure of what you want and
don't budge, a dealer may offer to let a car go cheaper if it is
"almost" what you want.
Have an idea in your mind of what your second choice would be, and
if the offer comes you'll know whether to say yes or no and won't be
confused. Here's a chance to pay a lot less and get something very
close to what you wanted.
Don't get emotional
Emotions can cost you money. If you let a dealer get you too "high"
on a vehicle, if you reveal you have to have a certain vehicle or if
you are excited but not well researched, you'll almost always pay
more.
Walk out the door
Do not be too embarrassed to walk out. Many dealer tricks are
designed to keep you in the showroom.
Shop initially by phone
Consider beginning the process by phone -- getting some competitive
prices is your first step, but there's no need to get involved with
a salesman just for that. Don't accept a refusal to talk over the
phone. A dealer who demands your presence before offering any
numbers is not speaking your language.
Compare the same numbers
Get all the dealers you talk with to use the same figure. Use the
factory invoice price as a basis. Then each dealer must give you a
number you can compare to other dealer prices.
Every dealer pays the same for the same car -- the factory
invoice price.
Work the wriggle room
Dealers sometimes get extra factory incentives and may be able to
sell below factory invoice price.
Negotiate for a price, not a monthly payment. Price first, then
payments!
Don't buy what you don't want
Don't pay for things you don't have to pay for. Be prepared to pay
extra for taxes, registration, licenses and destinations charges.
Don't pay for these at all
Don't pay for delivery, promotion, handling, sales charges, floor
charges or any other fancy words the dealer is using to have you pay
for something you don't have to pay for.
You don't need this stuff
Be prepared to turn down fancy extras like rust proofing and pin
striping. They're expensive and you don't need them.
If you think you do need these, have it done by someone else besides
the dealer. It'll be much cheaper that way.
The absolute best way to negotiate
If you want to get the best deal from a car dealer, leave financing
out of the discussion entirely. You can't win against people who do
this for a living.
Find an auto loan interest rate online. Then go shopping for your car online.
Once you've figured out exactly what you want, fax a request for a price quote to a dozen dealers in your area.
Specify color, make, and model. Include all options. Insist that no other extras or add-ins be included.
Give a 48-hour deadline on the cover sheet.
Phone back the three lowest bidders and negotiate over the phone.
Only after doing all this should you set foot in the dealership
for a test drive.
And bring your finance check with you. You can always get a better
deal on the financing than the dealer offers. They're just a
middleman, not a source.
Apply online
The Internet has become a great way for car buyers to apply for
low-interest loans with no down payment, no application fee, and no
prepayment penalty-all from the comfort of their home or office.
If you're looking for an easy way to save money and willing to
invest 10 minutes, take the time to go online. You'll be amazed to
see just how much refinancing your car can save you.
E-Loan has great bad credit car loan rates
They represent all the major lenders.
That's why it pays to shop your bad credit auto loans through E-Loan.
You can have a check in hand tomorrow to refinance your car. All you
have to do is fill it out and send it in.
Apply online at E-Loan today. It's quick (takes 5 minutes), fast
(you're approved in 15 minutes), and easy (it's a very short form).
Plus, you can't beat their low rates!
Related Pages
Auto Loans - How to get the best auto loans - Car loan finance tips - Auto loan calculators - Best sources for lowest auto financing rates.
Auto Refinance - Auto refinance and car refinancing tips - Links to auto refinancing calculators and refinance car loan calculator - Best auto loan refinance rates.
Bad Credit Auto Loans - Provides bad credit auto loan information, tips on bad credit car loans, and links to the best lenders offering good rates for bad credit auto loans.
Buying A Used Car - Used car buying tips - How to get a great deal on a used car - Auto loan and car finance tips plus the best auto financing rates.
Car Buying Tips - How to buy a car without getting ripped off - Negotiate separately for the price of the car, the value of your trade-in, and your car loan.
Auto Loan News