Once you are ready to purchase a vehicle, you need to know how to negotiate the price for the vehicle you want to purchase. You will need to know a few negotiating tactics to get the right price on a vehicle.
#1: Call About Pricing
You don't have to start your negotiations for your vehicle in person. You can call a dealership up and ask them their best price for a vehicle over the phone.
You may have to talk to the salesperson for a while to get a quote over the phone; however, with more people doing deals and work remotely, it is easier to negotiate the price or at least get an idea of what the best price is by calling and working on the price before you show up. This works best when buying a new vehicle and when you know exactly what vehicle you want to purchase.
#2: Agree on Pricing First
If you want to get rid of your old vehicle by trading it in, don't give that information away upfront. Instead, negotiate the price for the vehicle first. Come to an agreement on the price of the vehicle.
Then, if you want to trade in your vehicle, let them know that you have a trade-in. When you handle the trade-in and vehicle purchase separately, you get the best value for the vehicle.
#3: Focus on Price
When you are negotiating the price of the vehicle, be sure that you are negotiating over the purchase price, not the payments. The price of your payments will vary based on term length and interest rate.
For example, a car that costs $10,000 with a 36-month term would result in payments of $277.78, not accounting for interest. With a 48-month term on a $10,000 loan, the payments would be $208.34. The car salesperson could make a vehicle seem more affordable just by extending the terms of the loan, which is why you need to focus on the overall purchase price, not the payment price, as that can be easily manipulated.
#4: Be Willing to Wait
Finally, you need to be willing to wait. If you can't come to a price that works for you, you need to be willing to walk away. You can always come back later and see if they are willing to meet your demands. There is also a lot of vehicle inventory out there, and you can keep looking until you find a dealer that is willing to give you the deal you want.
When it comes to negotiating the price of a vehicle, call ahead to learn about pricing. Always focus on negotiating the cost of the car, not the payments, and don't discuss the trade-in until you agree on the price. Finally, remember you always have the power to walk away.
Contact a local auto dealer when you're ready to start negotiating new and used car prices.