Advertising

How to Negotiate with Car Salesmen and Get the Best Deal

Advertising
How to Negotiate with Car Salesmen and Get the Best Deal

    Like lawyers and dentists, few people actually enjoy having to deal with car salesmen.  They’re a necessary evil that often leave consumers with a bad taste in their mouths because of the tactics they employ to get people to purchase a new vehicle.  Coming out of the negotiations with a new car and a great deal on it can happen, if you go about things the right way.

    Secure Financing Ahead of Time

    When you’ve decided that it is time to buy new vehicle, instead of heading straight out to the dealership, visit your local credit union or bank and secure financing in advance.  Car dealers make a lot of their profit on financing deals, and you can save a lot of money by getting your auto loan through a reputable third-party ahead of time.  Once you’ve done this, you’re ready to head out to the dealership and take a look at the vehicles, although it is a good idea to do some research in advance and figure out which ones you might be interested in.

    Advertising

    Go In Well-Rested

    You’ll want to make sure you’re well-rested on the day that you go to pick out your new car.  Don’t go when you’re rushed or overtired, or after a long day at work.  You need to be 100% there mentally if you want to come out of it with the best deal possible.

    Ask to See the Invoice

    Once you’ve found the car you’d like to purchase and the dealer takes you into his office or cubicle to begin the wheeling and dealing, ask to see the invoice.  This will tell you all kinds of information about the car, but most importantly, how much the dealership paid for it.  Keep that figure in mind as you negotiate what you’re willing to pay.  Sure, they’re going to make a profit, but knowing that number can help you lead negotiations in the direction of minimizing their profit and lowering your overall cost.

    Advertising

    Just Say “NO”.

    The first thing that you need to know when it comes to negotiating the price of the vehicle you’re interested in purchasing is that “NO” is your best weapon.  Arm yourself and be prepared to use it, possibly even multiple times. Don’t let them strong-arm you or sweet talk you into something that you would not be comfortable with. Take a cue from my 18-month-old toddler and say it like you mean it (head shake optional).

    Let Them Come at You With an Offer

    The dealer will ask you some basic information about yourself, such as your name, address, and so on.  Answer honestly.  Most will start off the price negotiations by asking you how much you’d like to pay per month.  An appropriate answer to this question that will throw them off their game is “I’d like to pay zero.”  You might get a chuckle or a “wouldn’t we all” type comment before the salesman resumes his attempts to get you to provide him with a magic number that you’d be willing to pay them each month for the privledge of driving the vehicle of your choice.  They might ask you what you are paying now.  If your car is paid off, answer “Zero.”  If you are still making payments, give them an honest answer. Do not make the mistake of giving them a price you’d be willing to pay each month.

    Advertising

    For your best chances at scoring a good deal, make them come at you with an offer.  No salesman would tell you that the amount per month you’re willing to pay is a lot higher than the deal that you could possible walk away with.  Car salesman get a minimal salary for hanging out at the dealership, but can make their riches in the commission they earn by selling cars. Their goal is to maximize their commission and the profit for the dealership. Your goal is to minimize their commission and the profit they make to get the best deal on your new vehicle. Get them to give you a number, and when they do, it’s time to begin negotiating.


      Bring an Extra Set of Keys

      If you will be trading in a vehicle to help offset the cost of the new one, don’t leave home without taking two sets of keys with you.  One tactic that dealers try to employ during the negotiations process is to look at your car and then kidnap your keys.  If you bring along second key they can’t hold you hostage.  Just make sure to give them the key that is a cheap copy, not one with a fancy key-fob or remote.  The idea is, if negotiations go sour and they try to hold you captive while hanging on to your keys, you can walk right out the door without having to worry about getting the key back.  They’re not expecting this, and will chase after you with promises of a better deal.

      Inform the Salesman That You Already Have Financing & Finalizing the Deal

      Advertising

      Do not, I repeat, DO NOT inform the salesman in advance that you’ve already secured financing.  Keep this a closely guarded secret until the time is right.  If they know that you already have financing, it will change the way they deal with you.  The time to make the big reveal is once you’ve agreed on the final price of the vehicle.  Your credit union loan or other third-party auto financing will likely have better rates and terms than what the dealer is offering. At this point, pull out your calculator and utilize your financing details to figure out how much you’ll be paying in the end.  More than likely, it will be less than what you would have paid had you used dealer financing.

      Conclusion

      Follow this advice and I guarantee that you’ll walk out of the dealership with not only a new car, but also the satisfaction of knowing that you got the best deal you could have gotten. It feels a lot better than getting screwed out of hundreds or thousands of dollars.

      More by this author

      Julie McCormick

      Julie McCormick is a writer, and co-owner of The Cleveland Leader, a Technorati Top 1000 site.

      How to Improve Memory and Boost Your Brain Power How to Declutter Your Life and Reduce Stress (The Ultimate Guide) How to Continue Reading the New York Times Online For Free How to Get Around Facebook’s New Photo Viewer 7 Ways to Create a More Tranquil Workspace

      Trending in Money

      1 Financial Freedom is Not a Fantasy: 9 Secrets to Get You There 2 40 Healthy And Really Delicious Meals You Can Make Under $5 3 Life Insurance: A Secure Way To Protect Your Future. 4 How To Save Money On Groceries: 13 Quick Tips 5 10 Investment Tips For Beginners

      Read Next

      Advertising
      Advertising

      Last Updated on July 20, 2021

      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

      Advertising
      Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

      Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

      Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

      Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

      In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

      Break Free of Your Finances

      Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

      When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

      Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

      Though it seems hard to believe, it is really very simple to get financial freedom.

      To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

      While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

      Advertising

      Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

      1. Stop Unnecessary Spending

      We often spend money inwardly, instead of objectively.

      For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

      To stop this habitual spending, log down all your spending over the course of a month.

      Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

      This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

      2. Plan a Monthly Budget

      This is a great opportunity to get serious.

      Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

      Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

      3. Cut-up Credit Cards

      Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

      Advertising

      If not, you may want to consider ridding your life of the burden that credit cards bring.

      Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

      Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

      4. Increase Savings

      There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

      It’s good practice to save up to 15% of your income.

      Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

      Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

      5. Invest Wisely

      Consider investing in funds.

      Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

      To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

      Advertising

      Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

      6. Invest in Gold

      There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

      You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

      Another way to invest in gold is through ETFs (Exchange Traded Funds).

      These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

      With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

      7. Stash Emergency Funds

      Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

      If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

      Make it hard to get your cash.

      Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

      Advertising

      8. Find Fabulous Mentors

      Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

      If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

      There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

      9. Be Extra Patient

      Patience is the key of financial success.

      Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

      So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

      Financial Freedom for All

      Anyone can achieve financial freedom, regardless of their financial circumstance.

      Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

      Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

      Featured photo credit: rawpixel via unsplash.com

      Advertising

      Reference

      [1] Hartford Gold Group: IRA Retirement Accounts

      Read Next