Negotiating the price for a car is not something that most of us do often in our lives. Those who get a good deal are either natural born negotiators, or very prepared to walk out of the dealership if they don't get the price they want. However, just like you can get a better deal on your used car loan by going through a broker, you can help yourself perform well in negotiations by running through the scenario mentally. Today we help you do that, and get a better deal than ever before!
The introductions and the car overview
Your first encounter with the dealer will usually be while you are looking at a car in the shop or yard. He'll tell you a bit about the vehicle, and probably ask you your name. When he does that, ask the dealer their name also.
Cheap car loans?
Many dealers try to gauge whether you'll be using them for financing before they negotiate a selling price. They ask what you have budgeted for monthly repayments, or tell you about a loan product they have. This is to gauge whether they'll be making a profit on the vehicle and the used car loan, or just the vehicle. This information will drive their pricing limits.
Always avoid telling them whether you have outside financing or not... if they believe you may need financing for the car you could get a lower price on the vehicle itself due to them thinking they will make the majority of money on the finance.
Make an offer
When you are ready to make an offer, tell the salesman that "I'd be prepared to pay x for the car". There are a hundred different negotiating strategies, and all are based on a strong knowledge of what that particular model is worth. Make sure you let the dealer know that the offer is subject to a satisfactory pre-purchase inspection by a qualified mechanic (at your expense), if you want that reassurance.
Make sure you have your finance arranged beforehand
If you have gotten a particularly good deal on the car, the dealer may well choose to put a higher markup on their financing to keep their margins steady. They are not obligated to let you know what their markup on a car loan is, either! Have your car finance arranged beforehand, and you can truly get a good deal.
The introductions and the car overview
Your first encounter with the dealer will usually be while you are looking at a car in the shop or yard. He'll tell you a bit about the vehicle, and probably ask you your name. When he does that, ask the dealer their name also.
Cheap car loans?
Many dealers try to gauge whether you'll be using them for financing before they negotiate a selling price. They ask what you have budgeted for monthly repayments, or tell you about a loan product they have. This is to gauge whether they'll be making a profit on the vehicle and the used car loan, or just the vehicle. This information will drive their pricing limits.
Always avoid telling them whether you have outside financing or not... if they believe you may need financing for the car you could get a lower price on the vehicle itself due to them thinking they will make the majority of money on the finance.
Make an offer
When you are ready to make an offer, tell the salesman that "I'd be prepared to pay x for the car". There are a hundred different negotiating strategies, and all are based on a strong knowledge of what that particular model is worth. Make sure you let the dealer know that the offer is subject to a satisfactory pre-purchase inspection by a qualified mechanic (at your expense), if you want that reassurance.
Make sure you have your finance arranged beforehand
If you have gotten a particularly good deal on the car, the dealer may well choose to put a higher markup on their financing to keep their margins steady. They are not obligated to let you know what their markup on a car loan is, either! Have your car finance arranged beforehand, and you can truly get a good deal.
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