To begin with Negotiation is not a mystery, nor is it something to be afraid of. You aren’t the first person who thought they couldn’t do well negotiating a deal. It is a certainty you won’t be the last either.
Lets begin with and understand the basic premise of a vehicle transaction and some simple rules to keep in mind. Obviously you are serious about this undertaking and you should be. You are about to make the second most expensive purchase in your life?
Keeping some basic understanding in mind will make this much easier. If you recall the mention in an earlier segment number two (2). The automobile industry is one of the purest examples of supply side economics. Unless the vehicle you have selected is of course in very short supply and very high demand. The ‘ Perfect car’ you have selected isn’t going to be difficult to find. You can bet there are several models similar in color and equipment that are available for sale? In the case of a new vehicle or relatively new, always remember: Detroit, Germany and Japan aren’t running into any shortages when it comes to making cars? The supply and abundance of similar makes and models, not to mention the hundreds and thousands of dealerships out there, hungry to sell a car is your single largest advantage. This is “Supply side economics” at it finest example.
A good thing to remember: Dealerships are set up with tables and chairs in a public environment where anyone can hear the questions and answers. Sales tactics in these environments are designed to make you self-conscious and intimidate you. It is only human to feel off balance to questions that aren’t usually asked of us.When a sales representative asks: You can handle a $600.00 per month payment can’t you? Of course you can’t, but telling the world you can’t, makes it incredibly more difficult to regain your composure. I’m sure you have heard people say “I just wanted to get it over with, and get out of there” When that happens, I’ll give you odds, they got a royal S*@!^%ing on the price and payments and how!
This is exactly what you will avoid by following these very important recommendations and tips.
When a salesman attempts to seat you in a public environment such as the example above. Tell him you are uncomfortable discussing your finances in this manner. Let alone allowing the world to listen in on the process. Insist on a private office, and make that demand a matter of fact. This is the beginning of several more “Take-away” situations we will discuss. By taking control at the very beginning you are in control of your own destiny. Although this first example is very subtle, it is your first step towards taking the high ground and the advantage.
Remember to bring your printed copy of the: ‘Ten (10) Step Buying Guide’ along with you. Don’t be afraid to set it right out in the open, for everyone to see. Did you remember to bring along some moral support with you? Remember never ever do this alone!
The ten (10) steps are broken down into these basic categories to make it easy to leaf though the printed material and make reference to the areas that you may dispute.
By now I’m sure your sales representative has already asked you “How much of a monthly payment are you looking for?” You should always be vague and never give a definite answer unless the answer is “ One Hundred Dollars or less” each month. The obvious come back from your sales representative will be “Then you’re putting a large amount of money down?” This is where you just give him the shoulders raising up in the air and a shrug, as if to say, “ Who knows”? Again do not speak, just turn away.
If and when you experience a dealership representative that has a bone in his throat or is down right stubborn and doesn’t seem to begin leaning your way? I suggest you do this: The take-away. The take-away in simple terms means exactly what it implies. Take your business away! Take it to another dealership or someone who is willing to be fair. Take it to someone who is willing to help make you feel comfortable with the deal, especially the price. Again there are dealerships on every corner and boulevard that spend thousands of dollars on just weekends, just to have an opportunity to sell you a vehicle. Dealerships don’t pay their bills and massive overhead every month by turning people away and not selling them a vehicle.
I promise once you stand up and say “ I’m Leaving now” The entire complexion of the negotiation or deal will take an entirely new turn towards your wishes. Make sure when you say “I’m leaving now” that you are firm and never smiling. As you stand up and gather your things to leave. The sales representative will spring to his feet and say “Lets hold on and wait a moment”
That’s because you now have him over your barrel instead of the other way around. He will undoubtedly tell you let me check with my manager. I promise you a sales representative that allows you to leave without a managers Okay! The sales preventative will definitely face severe discipline, possibly sent home, or even fired on the spot.
Regardless what happens, you can expect a change of face at this point? This is what is called a: Turn, a turn is exactly what it refers to. A manager Turned your deal, over to a more experience sales representative of quite possibly an assistant manager? You don’t need to worry about the new face or different sales representative. Their mission is to Do what ever it takes, on order to save a sale.
Usually the “new face” is supposed to settle you down and make you feel at ease. Expect a much smoother personality and someone who is surprisingly agreeable. If the “new face” takes up the same or a similar attitude, as the previous sale representative I would definitely advise you to find yourself another dealership. Don’t be surprised if another “New Face” stops you before you are able to make your get away. At this point I can promise, the manager himself will intervene and literally drop his shots: Car language or speak for: Surrendering to your wishes and give you the deal you want without further argument.
In the next segment we will discuss some basic rules to remember about calculating what a payment should be, in relationship to the amount financed. How to get the best possible finance rate and some other really good tips to remember.