Don’t Get Played: 14 Insider Tactics to Outsmart Dealers and Slash Your Car Price

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Buying a car is similar to playing a card game where you never reveal your hand to the opposite person. You have to tactfully negotiate with the sales personnel and get the very best deal out of them.

Now they are willing to negotiate to a certain degree. However, you can do much better if you know the golden rules of negotiating prices. It is an intricate process and takes time to master. So without further ado, let’s learn more.

Know Everything About the Car You Want to Buy

When you go to a car dealership without preparation, you’re handing them a massive advantage. Since car sales personnel meet all kinds of customers, day in and day out, they can quickly identify your preferences and talk all about them.

If you know about vehicles, you can talk about their strong and weak points and how the competition performs in the different areas. With detailed information, you do not let the sales team oversell you and make higher commissions in the process.

Never Bad Mouth Your Existing Car

So you own a piece of junk car that you’ve driven over 150,000 miles. Do not badmouth it and use a neutral tone, hinting it’s not the best vehicle at the most. Of course, they know your car is terrible.

However, by limiting the information you give out, you not only give them fewer points to leave you speechless about their vehicle but also help you retain a better trade-in value. It’s a little tip most buyers learn after their first few car purchases.

Know How Much Maximum You Spend Every Month on Instalments

Buying a car on financing is pretty much the norm for common folks. There are many considerations when it comes to the determination of the final monthly instalment for your vehicle. Be sure to know your maximum affordable monthly instalment.

There are websites that help you calculate your likely monthly payment, which helps you decide on a car. If you have a good credit score, you can get a lower Annual Percentage Rate (APR), and you get a better deal. Just be sure to do some homework on the matter before you go to buy a car.

Let the Sales Person Talk

Less talk from your end means greater control. It is the job of the salesperson to talk all day about the cars and tell everyone how amazing they are, even when that’s not the case. They will convince you of a higher price along the way, too.

To counter this, you listen to them but keep a blank stare. After half an hour of storytelling from the star salesperson, just reaffirm the price you want. They wouldn’t like it, but you will likely be able to get a better price out of them.

Know Your Credit Score

One or two are fine but do not go crazy with soft credit inquiries of yourself since they hurt your credit. You should have an idea about your credit score when you go for a car purchase.

This gives you leverage as the higher the score, the better the price, and the lower the APR. If you have a bad credit history and a low score, you lose a big bargaining chip in the process.

Focus on the Out-The-Door Price

There are several additions to the car’s actual price before it is delivered to you, including taxes, tags, and freight. If the particular vehicle has been sitting on the lot for too long, the dealership wants to get rid of it since they have to pay for its insurance every day it stays there after a while.

Negotiate out-the-door-price and emphasize that they lower your final price. Sure, it may take a little longer to negotiate, but it can save you a grand or two eventually.

Find the Right Dealership

There are all kinds of dealerships out there. Some may show stubbornness on prices, while others may be more willing to negotiate. Some dealerships may offer several brands at the same time. Typically, such dealerships have a soft spot for the selling brand.

You can go to a dealership with the right inventory but perhaps fewer sales due to poor team, location, or whatever other reason. They will offer a better price and be more willing to accommodate.

And Still, Shop Around

Even when you find the dealership that will likely give you the best deal, shop around to see if someone is offering a better package. There are dozens of dealerships in each major city, and you can always get a better deal.

However, don’t get greedy, and never seek an impossible deal. When you get a deal that you know can’t be beaten, take it.

Learn About Your Vehicle’s Trade-in Value

If you’re trading in your vehicles, do some research about it. You can even get it checked and appraised from a professional. You may get a great price on the car you’re buying, but the dealership will probably rip you off on the trade-in in many cases.

See if There Are Any Special Offers

As mentioned before, some cars just don’t sell even though they’re perfectly fine. Perhaps it’s the color that people can’t stand. Some may have hail damage; typically, it is just a couple of hard-to-find dings on the body.

You can get a great price on these and save yourself a ton of money. Hail damage vehicles specifically can sell for several thousand dollars below the MSRP.

Pre-Approved Financing is a Big Help

If you have pre-approved financing, it makes life easier for you. It tells the dealership that you can pay for the vehicle if you get the right price. You can negotiate with the upper hand.

Usually, such approval is available from credit unions. There are ways to save even more in the long term if you get a loan from a credit union. You can check the details with your local office.

Let it Snow

Most people want to stay home when there are harsh weather conditions. However, it is a great time to buy a car. Go to the dealership wearing your most comfortable shoes and negotiate.

Two benefits of doing so. One, they do not expect much traffic on snow days and want to chill. Secondly, they still need to sell, and it is better to sell for a lower price than to face the sales manager’s wrath on Monday morning’s meeting for no sales. You should be able to get a great deal.

Avoid the After-Market Products Pitfall

If you want some non-standard features in your vehicle, they better be manufacturer installed. Whether it is your preferred sound system or ABS brakes. It will add to the price of the car, but it is worth it.

The same additions from outside, or as referred to aftermarket, will cost at least twice the money. It is definitely not worth saving a few hundred dollars to eventually spend thousands. Factory installed equipment also usually comes with a warrantee.

You May Have to Walk Away

After taking all these steps and possibly spending several hours on the negotiating table, be willing to walk away from the deal if it does not make financial sense. Some deals may appear attractive, but can leave you in a tough financial condition in the longer run.

Avoid such a course and walk away. Even if you do not get the car of your dreams today, you’ve learnt some valuable lessons that will benefit you in the future.

Conclusion

Finding a good car that suits your needs is just one part of the buying process. Negotiating the price and getting a deal that you want requires negotiation skills and pressing the right psychological button at the right time.

Some of the key ideas is to talk less and listen more, let the sales person go around in circles, and then return to the main point. The timing of when you’re buying the car, and finding the right seller all matter. An extra bit of hard work can get you an amazing deal.

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