Negotiation strategy you need when you are buying a car

If you know someone who recently bought a car, ask them to share their documents so that you can become familiar with the buyer form. You will know how these forms work, so you won't be intimidated when you reach a deal. The dealer's document design can be confusing.

A. Do not negotiate car transactions based on monthly payments

Doing so will open the door to the "Cash Flow Empty Shell Game". You must negotiate the price before refinancing. Be especially careful when a 0% deal is reached in April. Make sure you always pay attention to the purchase price.


B. Don't be impulsive when buying a car

If you let your impulses prevail in a car dealership, it will cost you a lot of money. You can always buy it tomorrow or a week later. Take your time, because the people waiting will get good things!

C. End negotiations with sales staff as soon as possible

Try to complete the negotiations within half an hour. It's much longer than this, and the sales people don't have time to give you the best deal because they end up with only $50 in commission. Set the Transaction Timer to 30 minutes. Tell them that if there is no agreement at the end of the transaction, you will leave.

D. Negotiate from dealer costs, not from MSRP

Keep in mind that the invoice price in the previous chapter is not the actual dealer cost. In the last chapter, I showed you how to calculate the actual dealer cost and make a fair offer, which is 3%-5% higher than it.

E. Once you make a quote, you must stay strong

Use the research in the "Folder" to prove that your offer is reasonable and stick to it (if you offer 3% profit, you can be as high as 5%). They will yell at you, yell at your name and accuse you of stealing their children's things. This is part of the bookmaker's game, so don't agree to "divide the difference." Your final bid should not exceed a few hundred dollars.

F. Do not negotiate car transactions on an empty stomach

Before you go to negotiate a good meal, make sure you rest well and dress comfortably (but beautiful). If you are sick, have a fever or have a headache, don't buy a car. You want to perform well at the dealership.

G. Bring another person to the dealer

Let the second person stand on your side so that the salesperson won't scare you. Strategically, your partner should be a suspected Thomas, the proponent of the devil, constantly pointing out the negative part of the transaction, trying to "convincing you to quit" and saying that you should go back to another dealer.

H. Deposit after the transaction is completed

Unless you have agreed to everything and are buying this car, there is no reason to give any money. This is not to "show that your proposal is serious," but to let them take your money as a hostage. If you order from the factory, the deposit will be sufficient once the transaction is completed.