The two financial things that require your attention include the price that you pay for your home and car. Every penny that you spend is because of your hard work and it is your foremost responsibility to see that it is not wasted. The presence of good negotiation skills is a deal changer and it can help you save up to 15% on the total amount of your car. Therefore, before you set out to close your deal at the dealership lot, sharpening your negotiation skills will benefit you in the long run.
From Negotiating to Closing the Deal: Tips that will do the Tricks
Keeping the following points in mind will help you negotiate to effectively close a deal and buy a car.
1) Get a Price
The best way to be confident while negotiating a car price is to have clarity. Research various online portals such as Edmunds and TrueCar to help you obtain an estimated price on the exact car that you wish to purchase. Additionally, walk into multiple car dealerships and try to get the lowest price for the car.
2) Pay Less than the Listed Price
The thumb rule of negotiating is to always start the negotiation from your lowest offer. For instance, if you wish to purchase a used Ford-150 pickup truck that is listed at $20,000, make sure that you close the deal at a price less than $20,000. New cars and used cars always contain certain margins for the dealers. Therefore, reduce the margin gap and close the deal at a price that is profitable for you.
3) Finance First
If you don’t want to apply with a bank, auto manufacturers have their own captive financing company and dealers have dealership financing to help you. There are many options available to you when you wish to purchase a car. But it is always better to be prepared. Apply for a pre-approved auto loan before visiting the dealership lot. Once you have your financing in place, compare and choose the deal that reaps you the most gains.
4) Total Price over Monthly Payments
Never close a deal that primarily focuses on the monthly payment of your car over the total price. You should always negotiate on the total price as it is the actual amount that will become the principal of your auto loan. Assets such as cars depreciate over time. So, a term of five years or less is recommended as a longer loan term will cost you more money than the worth of the car.
5) Lastly, Trade-In!
Only after you have negotiated your best and obtained a good price, mention that you have a car that you would wish to trade-in. The reason you should trade-in your old car at the end of the deal is that the dealers dupe buyers by manipulating the price of the new car. If you want to enjoy the best deal, check the price of your old car on Edmunds and CarFax before you finalize the deal.
Tactics, Tools & Tricks for making an Affordable Car Purchase
Negotiation is all about being active and alert while speaking to the salesperson. Express your pain at the first price that is quoted to you and name dealerships that are giving you competitive pricing while showing equal interest in the deal. Small tactics and tricks such as these will help you win big and save a lot of dollars in the process.