The Art of Negotiation
For many people, the idea of negotiation is a frightening thought. There’s something about confrontation itself that makes people feel uncomfortable. In this article, we are going to go over some negotiation basics that makes negotiation easy and natural.
Being a better negotiator comes with better knowledge. Let’s say you work a job that pays you 75k a year. You decide to transfer to another office that is basically identical to the one you’re working at but they want to pay you 70k instead. Would you so easily accept the pay reduction?
You would make some basic arguments. There is virtually no difference between offices, you are doing the same work, and you have the same responsibilities. Why would a pay decrease be warranted here? Nothing warrants the pay decrease, and it’s our natural instinct to speak out about the disparity.
The point of this example is that once you understand clearly the price you should be paying, getting charged more is simply unacceptable.
Do Your Homework
Before going to the dealership to buy or lease a car, do some research. Find out what the value is of the vehicle you’re looking for and see what the average lease agreements are like. Talk to friends and family and see what their deals were like and how they got the best possible price.
There’s a lot of information on the internet about cars and negotiations, but if you would rather have the help of an expert, that’s available to you as well. You can always reach out to us here at carvoy.com for expert advice before making a deal.
Be aware of some basic negotiation tactics as well. One of the things sellers do is give you a high price right off the bat. If you’re rimid, you may just accept the deal without arguing. But if you know your stuff you won’t hesitate to simply say “no”.
Here are the numbers you should know:
- The current market value of the new or used car you want to buy, which you can research on sites like Edmunds, Kelley Blue Book or TrueCar.
- Any incentives you might qualify for, such as customer cash back or low-interest financing.
- The trade-in value of your current used car.
- Estimated fees and local sales tax.
With these figures, you can determine a target price to empower you in negotiations and show you how much you can haggle on the price of the car.
Negotiate From The Comfort of Your Home
After coming to a decision that you want a car, you can negotiate the price from home. Because of where we are at with technology, we no longer have to deal with face to face high-pressure negotiations.
A lot of negotiations are done through emails or phone calls. Once you know the vehicle you want to lease or buy, start the negotiation through email. That way you have plenty of time to do research and confirm the numbers being offered.
To use this approach, call the dealership and ask for the internet department. Or email the internet manager through the company’s website. Often the response to a remote query is “Come on down! We’ll take care of you!” Instead of taking them up on it, say: “I already test drove the car and I know what I want. Now, I’m shopping for the best price.”
Even if you negotiate a price you like from one particular dealer, don’t stop there. Shop around other dealerships and see what kind of deals you can get from them. You may even begin to enjoy the sense of control you get over your decisions when you know how to narrow down the best possible deals.
Dealers commonly say “we’ll beat any competitor’s price.” This means nothing unless you can actually show them a competitor at a lower price. Then you’ll see if they actually stand by what they say. And if they do, then you get the best of both worlds.
One Last Step
A big part of learning how to negotiate the car price is to make sure enticing offers are really as good as they appear. Before you agree to any deal, ask for a breakdown of fees to see the total — or the “out the door” — price. In some cases, dealerships insert bogus charges or inflate the documentation fee to try to take back some profit they gave away. Once you know the total price, and if it still looks good, you can buy with the confidence of knowing that you’re a savvy negotiator.