ALT-1 How to Negotiate the Price of a new Car
Your negotiating skills at the dealership can go a long way in affecting the final price you will pay for a car, even a new one. Hone up on your skills so that you can get the best deal possible. The following strategies may be of use.
Do research
You want to have an idea of how much others are paying for cars of similar specifications. Of course this number will change all the time, so do your research right before you go to buy. You can get an idea in a number of places such as www.consumerreports.org. Print out this information to take with you.
Show confidence
You want to carefully watch your attitude as you are negotiating. Do not act like you need this car no matter what it costs. If you display that you are walking out of there with that automobile no matter what, then they will not see the need to lower the price. Appear unaffected and in no desperate hurry.
You also want to appear confident. Look them in the eye when talking to them. Speak authoritatively so that they can hear you.
Find out about other fees
Most dealerships have a practice of adding in a dealer's fee at the end of the negotiations. This may be $500 or even more. You want to find out about these before you do your negotiations so that you can include it in them. Otherwise you may negotiate a price, and then they will just raise it by $500.
Try to get to where you want to be in the negotiations
You want to decide what you are willing it to pay for the car. Of course you do not have to pay that full amount. They will usually have a higher sticker price. You may then want to start out with an offer. Do not make it ridiculous, however it should not be the total of what you are willing to pay. You can explain your position to them, using the numbers from your research on what others are paying. They will usually then move down. Stay calm as you go back and forth. Ignore their tales of how they are losing money on the car. It is a ploy that many use.
When you are close, you may decide to just give out a number of what you can pay. Stay steadfast. Ignore their sales pitches and comments such as "Think about how good you will look in that car." Do not be so over-eager that you give in when you do not have to do so.
Do not be afraid to walk out
The good thing about a new car is that you will generally be able to find a very similar car at another dealership (unlike used cars, each of which has so many different variables). The dealerships know and understand that competition. Also, unlike a used car, you generally do not have to worry that someone will come in and take the car since most of the time they will have several versions of the same new car. When you get to a price that you think is fair and they will not budge, then you can walk out to see what they say. They may stop you at the door because they know that if you walk out you are less likely to buy.
You may want to practice negotiating beforehand so that you get better at it. If you are not good at it, then you can consider bringing along someone who is. The above tips can aid you through this process.
