Planning to buy a car here in Indianapolis? Increase your chances of getting the vehicle at a good price by learning how to negotiate. All car buyers can tip the scales to their favor if they know just what to do. Listed below are some tips you should remember if you want to emerge the victor in the negotiation process:
Research, research, research
You can only successfully negotiate if you have important information. As a car buyer, you need to know as much as you can about the car or cars you are considering to buy. Take time to learn everything from vehicle specifications to prices. Check out what dealers in the area are offering. Take advantage of the wealth of resources available online for your research.
Head to the dealership with quotes
If you will be financing your car, find out what you can get from lenders before you head on over to the dealership. Start with your local bank or credit union and get rates for both new and pre-owned cars. Feel free to get quotes from finance companies and online lenders, too. The quotes you will get from the different lenders will put you in a better position to negotiate once you are in the dealership. Bring the quotes to the dealer come shopping time so you know what figures to start your negotiations from.
Know which price to negotiate
Knowing what to negotiate is half the battle. In this case, you should be discussing with the salesperson the invoice price rather than the sticker price. The sticker price is the amount dealers want you to pay for the car, while the invoice price is roughly the amount the dealer paid to the manufacturer. You may request the invoice price from the salesperson, but it would be better for you to search for it before you go to the dealer. You can view invoice prices in select online resources.
Start negotiating up from the invoice price and raise your bid by increments of no more than $100 to $200. Don’t raise your bid until the salesperson gives a counter-offer.
Play the part
Car salesmen are known to be aggressive. They are trained to wear you down until you agree to their terms. If you walk into the dealership looking like a potential ‘victim,’ you are giving them the opportunity to take advantage of you. Hence, you should be a smart shopper and play the part. Even if you desperately need a car, don’t show it. Act cool and relaxed, and exude confidence. Believe it or not, the way you act can influence how you negotiate.
Be prepared to leave
This tip may not seem related to negotiating, but it is one of the more important steps. You may be walking into a dealership with the goal of buying a car, but it doesn’t mean you should walk out with one. You must be ready to leave the premises without a car, and you are encouraged to do so if you feel you aren’t getting a good deal. If you feel like something is wrong or the transaction is not going as planned, excuse yourself and walk away. You should never be pressured to buy. Take time to regroup and get ready to start the negotiation process again.