When it comes to dealing with a car dealer, there are certain rules that you have to follow. These rules are all about knowing your actual requirements and how much and where you can compromise. If you know all this, you win half the battle. If you do not want to pay more than you really want to, haggling is virtually essential for you – but you have to do in the smartest possible way.
The first step is to do a thorough research on everything, including price, features, functionalities, finance rates, and other such things. The problem here is that when a person start dealing with car dealers, they find it a very difficult task to recall each and everything they have researched upon. Therefore, you had better focus on these common rules.
Profit Margin Of The Dealer
As compared to the invoice price, the sticker price is set by keeping a profit margin of around 10-20%. You have to negotiate accordingly.
Price Below Factory Invoice Price Is Possible
Don’t hesitate in negotiating the deal below the factory invoice price. Some dealers get extra factory incentives. Therefore, if you strike at the right time, you may force the dealer to close the deal at a price below invoice.
What You Don’t Have To Pay For
You do not have to pay for floor charges, sales charges, handling, promotion, and delivery charges. The dealer may also ask you to pay for some other fancy extras, such as pin striping and rust proofing. You don’t need them. So, don’t pay for them.
What You Have To Pay For
There are certain expenses that you cannot deny paying, such as destinations charges, licenses, registration, and taxes. Be prepared to pay these extras.
Price Comes First, Not The Monthly Payment
Do not get attracted by a low monthly payment. Always focus on the overall price that you have to pay. Try to keep the price as low as possible. You have to think about the price first and then the monthly payment.
Make The Factory Invoice Price The Basis For Negotiation
Always remember that the factory invoice price remains the same for every dealer for the same car. Therefore, you should compare their offered prices on the basis of how much they paid.
The Car Salesman Must Speak Your Language
Start contacting the dealers over the phone. If they refuse to entertain you on phone, it simply means you are contacting the wrong dealers. A good dealer who is a bit desperate to make a sale will always speak your language. So, focus on finding those specific dealers.
Do Not Let The “NO” Be An Embarrassment For Yourself
Do not feel embarrassed if they say NO to you. The salesman will play all the tricks. But always remember, he/she will never like a potential buyer to walk out without closing the deal.
Don’t Express Your Emotions
If you have a soft corner for a particular vehicle and you want to buy it at any cost, make sure that you do not show these emotions to the dealer. The salesman will immediately sense your desperation and cash on, on your own emotions. So, emotions can be a costly affair for you when it comes to dealing with a car dealer.
Be Sure Of What You Want
The most important rule is to be fully aware of your exact requirements. If you are sure of what you want, you will never be paying for something that you don’t have to pay for.
Timing is essential. Make it a rule to contact the dealers during the last week of the month.