Dealing With a Car Dealer
Car dealers are experts at making you think you got a great deal, pocketing good money for the car dealership and making a nice commission for themselves. It’s not mean-spirited, it’s simply their job. However, you can still haggle and get the best possible price if you know how to deal with them.
Car dealers are people readers. As soon as you walk in they start thinking about what kind of car you’re looking for, how much you’re willing to pay, how much research you’ve done… In turn, you can show them you’re prepared, informed and, most importantly, not scared.
Before you even set foot in the dealership, do your research online and over the phone. Start with the type of car you want and look at all the different options with similar characteristics and price range. Use a car price finder to get the sticker and invoice prices. When you have a basic idea, call dealerships in your area and request quotes.
When you finally come face-to-face with the car dealer keep a low profile, act confident and know what you want. Tell him what it is your looking for and don’t let him talk you into buying something different if it doesn’t meet your needs. With that said, remember that it’s also good to have an equally appealing second choice. If the dealer offers you a better price and it works, go for it!
Dealerships usually make between 10% and 20% profit on the cars they sell, if you know the numbers you can push the line a little. Tell him how much you’re willing to pay (which of course has to be a reasonable amount) and let them talk to their manager.
Car dealers might also try to lure you into buying a car based on the low monthly payments, but in the long run you might be paying a higher price and interest. Politely tell him you’d like to negotiate the price first and ask about discounts and car dealer incentives for cash purchases (and find financing elsewhere).
Lastly, don’t be afraid to walk away, after all, there are many fish in the sea.
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