Car Dealer Negotiating Tactics
by Stan Cartwright
While trying to negotiate the best new car deal or used car deal with a car dealership sales person there are several items you should negotiate separately. Often, the sales person will hone in on what they perceive to be your hot button and focus on satisfying that single item.
For example, if the monthly payment of a new car is your hot button, instead of lowering the price to meet the payment requirement the new car deal could ask for a longer re-payment term from the bank, credit union or auto finance company that approved the financing on the vehicle.
Items to Negotiate for a Better Deal Instead of focusing on a single item, make sure you question each of the items below. If you research these items ahead of time you’ll have a much better chance of getting a good deal at the car dealeship. If you counter with ridiculous offer, the sales person may walk away from the negotiation process.
Never, ever, start by negotiating the monthly payment. The payment is what it is; a simple mathematical calculation based on the finance amount, the interest rate, and the number of months utilized to repay the loan or lease. Once you have negotiated the lowest price, money down, service contract price, if applicable, and interest rate, as well as well as the highest trade-in value, ask for payments based on 36, 48, 60, and 72 months.
To save money on finance charges select the highest payment and shortest repayment term that you can afford. At this time you may also consider using more money down to lower the monthly payment to an amount you can comfortably afford.
For example, if the monthly payment of a new car is your hot button, instead of lowering the price to meet the payment requirement the new car deal could ask for a longer re-payment term from the bank, credit union or auto finance company that approved the financing on the vehicle.
Items to Negotiate for a Better Deal Instead of focusing on a single item, make sure you question each of the items below. If you research these items ahead of time you’ll have a much better chance of getting a good deal at the car dealeship. If you counter with ridiculous offer, the sales person may walk away from the negotiation process.
- Sales Price
- Trade-In Value
- Interest Rate
- Money Down
- Service Contract Price
Never, ever, start by negotiating the monthly payment. The payment is what it is; a simple mathematical calculation based on the finance amount, the interest rate, and the number of months utilized to repay the loan or lease. Once you have negotiated the lowest price, money down, service contract price, if applicable, and interest rate, as well as well as the highest trade-in value, ask for payments based on 36, 48, 60, and 72 months.
To save money on finance charges select the highest payment and shortest repayment term that you can afford. At this time you may also consider using more money down to lower the monthly payment to an amount you can comfortably afford.
