| Despite the fact that the world is emerging from a | | | | following a script that the car dealership has provided |
| global recession, sometimes the need to buy a car | | | | them with, you have a fighting chance - if you change |
| shows up just when you least expect it. If that time | | | | the way that the game is played, then you will have |
| has arrived for you, then maybe we should spend | | | | gained the upper hand in the negotiations. |
| some time talking about what you need to do in order | | | | Your Strongest Tactic: I Don't Need This Deal |
| to successfully negotiate the purchase of your next | | | | In sales negotiating one of the most powerful tools that |
| car in 2010... | | | | we have is the ability to walk away from the deal. All |
| Three Phrases You Need To Know | | | | too often when we are negotiating to buy a car, we |
| Michael Royce has spent a lot of time researching | | | | forget that we have this option. We've spent a couple |
| how best to buy a car and he believes that you need | | | | of hours at the car dealership, we've gotten to know |
| to understand the difference between three different | | | | the salesperson and maybe even their manager, |
| car buying terms before you first step foot inside of a | | | | we've filled out some paperwork, its really started to |
| car dealership: | | | | feel like we're committed to doing a deal with these |
| | | | guys. However, that's not the case. |
| 1. Sticker Price: this is a fake value - if the car | | | | The great thing about being a car buyer is that there |
| dealership could sell the car to you for this price, then | | | | are a lot of different places that you can buy your car |
| they'd be happy because this value represents a nice | | | | from. You don't need to complete the deal that you |
| big profit margin for them. For you, all this value means | | | | are working on - you can walk away at any time. The |
| is that you should be able to buy the car for much less | | | | other side of the table knows this too and they will do |
| than this value. | | | | almost anything to prevent you from leaving. |
| 2. Invoice Price: this is how much the car dealer paid | | | | You need to clearly state that you don't want to talk |
| the car manufacture for the new car. In theory, this | | | | about monthly payments (that's like dealing in "funny |
| value does not include any car dealership profit in it | | | | money"), instead you want to talk about the selling |
| and so the car dealer will need to sell the car to you | | | | price of the car. Don't be in a hurry or give the |
| for more than this value. However, if the car | | | | appearance of being desperate (even if you are!). |
| manufacturer is offering rebates and other special | | | | Make sure that you've done your research and know |
| offers, the car dealer may actually be buying the car | | | | what a fair selling price for the car that you want is. |
| for less than the invoice price. | | | | For new cars it's probably a couple of hundred dollars |
| 3. Wholesale price: for a used car, this is the price that | | | | over the invoice price and for used cars it's probably |
| the car dealer paid for it. If you look in used car pricing | | | | $400-$500 dollars over the wholesale price. Start your |
| books, they will list both the wholesale price (what the | | | | negotiations there and be prepared to leave if things |
| dealer pays for the used car) and the retail price (what | | | | don't go the way you want them to. |
| the dealer will try to sell the used car for). Remember: | | | | What All Of This Means For You |
| It's A Game | | | | Royce makes the good point that even if you do walk |
| In order to get yourself into a proper mental state to | | | | out of a negotiating session, leave on good terms. |
| negotiate to buy a car, you need to sit yourself down | | | | There's no need to burn bridges - this is just a business |
| and remind yourself that you are getting ready to play | | | | deal after all, not a personal attack. |
| a game - it's a game with very high stakes, but it's a | | | | The next day call the dealership back up and see if |
| game none the less. | | | | they still want to deal. It can be amazing how seeing |
| The biggest challenge that you will face is the simple | | | | you walk out the door can motivate them to find ways |
| fact that in this game the other side of the table may | | | | to get closer to the price that you want to pay. |
| be much better at it than you are. The car salesperson | | | | Always remember that buying a car is very much a |
| does this several times a day, every day. You might | | | | game that you play every few years. You'll never do it |
| think that this gives them an insurmountable advantage | | | | as many times as the other side of the table has done |
| over you; however, it doesn't - most car salespersons | | | | it, but if you use these suggestions, then you can make |
| are not that good at what they do. | | | | the deal work out in your favor... |
| Since many of them only know how to sell a car by | | | | |