5 tips for dealing with car dealers

There are some basic rules that apply to any negotiation. If you are a buyer, you will almost never get something lower than your original offer. The first number you put on the table will be the benchmark for judging and comparing all subsequent offers. If you set the standard too high, you will leave yourself some room for manoeuvre and you can make a deal based on the number you like.

When it comes to cars, the attitude is that if you can't get what you want, you can go away at any time and then go to another dealer. No matter how embarrassing and experienced the sales staff is, this ability will give you the upper hand. Using this power is good for you.

Here are some tips that might help.

1. Do your homework

Prepare yourself as much information as possible about the car you want to buy. Magazines and internet sites are a good source, and the Kelly Blue Book is also if you are in the used car market.

Understand the existence of unlicensed dealer extensions and financial incentives that directly benefit dealers. Slow sales are the percentage of sales that the manufacturer repays to the dealer. This artificially increases the dealer's vehicle cost and makes the vehicle look more expensive than the actual price. Your goal is to take the money away from the dealer and put it in your own pocket.

Bring your research results to your dealer, including market value, current rebates, financing quotes, and transaction estimates. An important aspect of talking about a good business is to convince the sales staff before the negotiations begin that you know what you are talking about. If you build your credibility from the start, it will make the salesperson notice that you are not an easy person to deal with. (For more information on the actual cost of owning a car, check out the true cost of owning a car.)

2. Have a budget

Many dealers will ask if you have a budget or the maximum amount you plan to spend. Good question, but don't answer it directly. You should have a budget, but do it yourself. If you reveal this number, your advantage of lowering the budget in the negotiations will disappear, because the salesperson now knows how much you are willing to spend.

You want to get the best car and spend the least money to buy it. If someone asks if you have a budget, answering how much you have to spend depends on the attractiveness of the car and the overall deal. Deliberately vague.

Review your financial situation and figure out how many cars you can actually buy. You want to be able to make quotes and counter-offers without the need for on-the-spot calculations.

3. Consider your timing

If you don't mind buying at the end of a model year, dealers must clean up their existing inventory and make room for new models. Although you will lose a year's depreciation, if you plan to keep the car for a few years, this is not a key factor. Dealers also promote special discounts at different times of the year and certain holidays. If you can't plan to buy during these hours, don't let this stop you. If you are willing to bargain for them, many dealers will give you the same discount all year round.

4. Bring a friend

When you don't seem to be willing to give in, the salesman usually brings reinforcements. If someone is with you, they will interfere and transfer some sales opportunities. This can be helpful if you find yourself having multiple salespeople. You can also use your friend "good police - bad police", your friend acts as a bad policeman, making you a fair and reasonable buyer. Make sure your friends get a comprehensive introduction of the role you want him to play in advance.

If the sales manager is involved in the negotiations to break the deadlock, this may be good for you. He usually has more rights to cut prices than sales people.

5. Put on this dress

You don't want to make yourself look like you have money to burn. If you trade with an old car, drive it to the dealer and leave the new Mercedes in the garage. Casual, but very professional. Sloppy to no avail, because the salesperson may think he is wasting time with you. If you are lucky enough to wear a Zhadora watch, leave it at home.