Negotiating the price of a new car can intimidate prospective buyers. Car dealers never automatically offer the lowest possible price of a vehicle and always attempt to make the most profit possible. In order to negotiate successfully, you need to be an informed and determined buyer.
Determine Dealers Costs
Find out what the dealer most likely paid for a certain vehicle by searching for dealer invoice pricing. Also, research the Manufacturers Suggested Retail Price (MRSP). Determine if your car choice has any rebates or dealer incentives. You can find all of this information by searching on Edmunds.com. To calculate dealer cost, add together the dealer costs, delivery fees (which average about $800) and advertising fees (which average about $300). Then subtract any rebates and incentives and also subtract three percent of the MSRP (a holdback amount that the dealer gets the manufacturer when it sells a car). Negotiating Dynamics explains that most dealerships need to make at least a three percent profit on every car sold. CarBuyingTips.com recommends that customers offer five percent over the dealer's cost.
Shopping Around
Negotiating Dynamics suggests that you get quotes on automobiles from at least three or four dealerships in your area by visiting local dealership websites. After you get the quotes, make phone calls to all of the dealers to verify quotes and indicate to the salesperson that you want a lower price closer to the invoice price of the car. At this point, the salesperson will most likely suggest that you come to the dealership to discuss the deal further. Make an appointment with the salesperson of your choice.
Appointment Negotiating
When you meet with the salesperson, offer to pay the price that you have calculated as the invoice price to a reasonable profit of three to five percent. If the salesperson argues that your offer does not reflect the actual invoice pricing, then ask to see the actual invoice and negotiate based on the invoice.
Continued Negotiations
If you cannot reach an acceptable price at your first appointment, leave and plan to continue negotiations by phone or at a follow-up appointment. Negotiating a car purchase may take some time if you really want to get the lowest possible price. If you lose focus or get impatient, you will likely pay more for the car in order to halt negotiations.
0 comments:
Post a Comment