Negotiation Strategies for Car Buyers

By Lanlan Liang

No matter you have cars already, or you are planning for your first car, it is crucial to understand the rules of dealerships and negotiate the best possible terms for yourself. Some strategies that help you in negotiation are as follows:

Firstly, do not let a car salesman tend to underestimate you as a buyer. If you barely understand the mark-up of the car’s sticker price and how dealers make their profit, you probably can not get a good deal. One thing we need to pay attention is that dealers love to quote cars in terms of the monthly payment, and they try to lower the monthly payment in order to attract you to the lowered price and entice you to make a purchase without careful considerations. However, indeed they extend the loan term rather than cutting the purchase price.

Secondly, do not fall in love with a specific car. Car salesmen will do everything to make you buy a car emotionally, for example, by offering you a great test drive. If they know you want the car so bad, it will be much more difficult for you to negotiate a good price. In order to prevent an irrational purchase, you need to act like you are willing to walk away, and you are only shopping and looking around, which might help you get the deal you want later on.

Thirdly, be patient. Since car salesmen’s commissions are based on volume, they want to sell a lot of cars as fast as they can. Perhaps with every day goes by, car salesmen will grow more and more anxious about the deal, wondering whether you have changed your mind or found a better deal somewhere else. In this case, it is a good chance to get a price concession from dealers by using time in your favor.