When buying a car many people get the idea that they must go to the dealer and either pay the price they are asking for the vehicle or argue about it and get a lower price. On the contrary, negotiating for a better price is far from arguing about the price. Negotiating is trying to find a common ground that both can be happy with the deal. If you don’t reach an agreement that both of you can agree on, then the negotiations failed and you will have to weigh other options like going to another dealer.
Before you go to the dealer, know what you plan on paying for the car you want. Don’t show up at the dealership and not know about the car you want to purchase including options available and the suggested retail price for a new car or the NADA price book for a used car. New cars and used cars are basically the same when it comes to the technique of buying one other than obtaining this info. Take for instance a dealer pushes a car at you with a price $1500 over NADA value. He says that this vehicle has full time AWD and that’s the reason for the increase, and you purchase the car. Only later to find out that it was a standard option. Knowing the car you want to purchase can help you plenty in your negotiations.
Another tip is to keep your emotions out of it. One trick a salesman may try to employ is emotion. Such as with a younger man, he may show a fast sports car. Or for a mature woman that has kids, he’ll ask about the kids and show a mini van or crossover SUV. If you start talking about your kids and how much they’ll love the DVD player then he knows that he has you at an emotional level and that will help in the negotiations on his side. Keep your emotions in check and that will help you. Also know your limit. Having a maximum price in your head and not going over that price is a moral victory in itself. And if you can’t reach an agreement with the dealer, you may need to find another dealer.