The average price of a new car in America is $47,936, according to Lending Tree. Your negotiation skills could make a big difference to your price for a new car. Before searching for a “Honda Accord dealership near me.” learn the five sure-fire tips that separate pros from amateurs in the negotiation game.
Tip #1: Gather as Much Information as Possible
When it comes to negotiations, knowledge is power. Salespeople in car dealerships have the upper hand because they know the ins and outs of the vehicles they sell. Take the upper hand by gathering as much information about the car you want to purchase as possible. The more knowledge you have during the negotiation process, the more confident you’ll be because you’ll be negotiating from a place of strength. Otherwise, the salesperson could capitalize on your unfamiliarity by bloating the price. You can get information on online resources such as NADAguides or Edmunds.
Tip #2: Keep Calm, the Salesperson is Watching
Emotions are inevitable when buying a new car, but you must keep them at bay. After successfully searching online for “Honda dealerships near me“, nobody would blame you for being joyous for finding your dream car. However, the salesperson is there for one reason – to sell. Your display of emotions, such as excitement and urgency, will only give them the upper hand. They’ll figure out you have already bought the car in your mind, and thus, they’ll have less incentive to lower the price.
Tip #3: Have Plan B…and C by Getting Multiple Quotes
The beauty of buying a new car in the modern world is the myriad choices. Instead of the options becoming a source of confusion, let them become a source of power. When you only have one outlet or dealership, you have no choice but to take their offer. While the dealers get the same car from the manufacturers, other factors could influence how low they’re willing to go on price. A good tip is to pick 2–3 dealerships, visit and ask for a starting quotation, and then request some time to think about it.
Tip #4: Buy Cash
A recent survey by Zebra shows half (50%) of respondents bought their car through financing. Buying a car through financing puts you on a path of increased debt and compromises your ability to negotiate a smart deal for your new vehicle. Financing allows you to go beyond your budget, so the salesperson can upsell and stick to a higher price because they can always recommend better financing. However, you can only pay what you have when you pay in cash. Thus, you are incentivized to negotiate a lower price than you would with financing.
Tip #5: You Can Always Walk Away
Your last resort in negotiations is your power to walk away. Ideally, negotiations should end in a win-win situation. Yet, often, you may be convinced you can get a sweeter deal elsewhere. Don’t settle for less than because you spent time at the dealership. It’s the salesperson’s job to negotiate and help customers, so don’t feel guilty you took too much of their time for nothing.
Remember that buying a car is one of your most significant financial decisions. Your choice will determine your lifestyle. Subscribe to this blog for more insights that make you wiser in lifestyle choices.