How to negotiate a car deal

The Internet has brought us many conveniences, including shopping for your car online. A decade ago, you generally had to drive to different dealerships around your area (sometimes to far flung places) just to get the right car for the right price. Today, websites and applications like Carmudi can shorten this process.

However, one factor still remains when buying a car; negotiating with the seller himself. Whether you are a car dealer or a car buyer, negotiating can be the most challenging part of your car buying process. So how do you handle dealing with the other party, especially if there are terms that separate you from them? Carmudi PH gives you an easy step-by-step process on how to negotiate a car deal.

Let us say you are interested in a car listed online and you really want to buy it. Here are some pointers to make your car buying experience easier:

Know the market value of the car model

Do your research first and know the real value of the car you have set your sights on. For pre-owned vehicles, that means getting an idea of how the dealer’s price compares with other similar offers in your area. If you are buying a brand new car, the only things you should consider are the interest rate of the car loan and the added dealer options.

Some pre-owned vehicles are just overpriced, flat out. Even if the car’s condition can be subjective, both dealer and buyer must have a common ground on the different damages, if any.

Be direct to the point

When contacting the dealer, be prompt and express your interest in the car. If you think that there are important details that have been left out by the dealer, point them out. Always ask for a visual inspection of the car as well as a test drive before making the deal. Also be very clear of your payment options- whether you are paying in cash or through a car loan.

By being direct, you not only save time for both parties and avoid dilly-dallying, but you also clear any ambiguity when negotiating. Negotiating when buying or selling a car requires that all the details are ironed out. Here are some of the issues that must be recognized by both parties before moving on to the next phase: the sticker price, price range or discounted price of the car; the car’s features and equipment; its mileage; its condition (does it need repairs) and how you are going to pay for it.

Strive for a win-win situation

Before you enter into a deal, always consider the wellness of the other party. That means not falling into the temptation of ripping the other party off in the negotiation. It is okay for the buyer to heckle and it is also alright if the dealer makes more than enough profit from his sale. But at the end of the day- you must always ask if both sides were happy.

Be polite and always be on time when meeting for the appointment- even if it is just a simple look in the showroom. Avoid using terms such as “take it or leave it” especially when settling the price of a pre-owned vehicle. You can use phrases like “that’s the lowest I can go” and then cite your reasons.

Cutting the price of the car

If you are a buyer looking to buy a pre-owned car, here are some of the strategies you could consider to cut its price. Fist, leave your offer on the table and set your conditions. If you want them to accept your offer, reminding them will do the trick. Some of the most vulnerable times for car dealers or managers to give in to prospective customers are:

• On the last day of the month when they are under pressure to create sales
• The closing time where they may want to close it with at least one unit sold
• When terrible weather conditions have struck the area (just be careful of flooded cars)

Maintaining the price of the car

Many used car dealers or private sellers do not get the price they have set because they mostly give in to the need to make a sale. So how do you maintain the assessed value of your car, even if the buyer is asking for a discount or bargain? It has something to do with explaining that the price itself is the best offer you can give him in terms of what he is getting.

And this is where knowing the unit’s market value comes into play. When negotiating, you can also suggest that the buyer focuses on his needs and how the car you are selling him can meet his expectations.