Car negotiation: 4 Ways on avoiding Tricks and Scams

It is important for you to know the proper procedures in conducting car negotiation. This is because most car dealerships and salesmen are fond of applying tricks on unsuspecting car buyers just to earn profits. Most salesmen who are working for car dealerships are paid on a commission basis which means that the more cars they sell and the more add-ons they place on a single deal would increase their commission. Due to this, you need to arm yourself with proper negotiating skills and sufficient knowledge about the vehicle you intend to buy before stepping on the dealership’s lot.

As soon as you enter the dealership’s place, salesmen would most likely offer you with deals that are actually too good to be true. Since they are trained for this job, you would probably b caught off guard in case you failed to do prior research about the price and actual costs of the vehicle you are interested in. In addition to this, the salesmen would also subject you to a stressful negotiation that would force you to give-in to everything that they offer. To avoid these, you need to consider some of the tips included in this article to guide you in negotiating with these individuals.

Avoid being caught off guard

Don’t be carried away by the idea that once you are able to conclude a negotiation with a salesman about the car you wish to buy and you are now dealing with the sales manager everything would be alright for this is not true. The sales manager might be nice and friendlier compared to the salesman but this doesn’t mean that you he or she would be giving in to your demands. Always bear in mind that this person is also paid on a commission basis   just like the salesman. If this is the case don’t let your guard down, for this person would also try to push you to sign a deal that provides greater profit to the company. In dealing with the manager, try to assert your intentions and refuse offers that are not realistic in a polite manner. If he or she pressures you to sign a deal that you wouldn’t like, do not hesitate to cancel the negotiation and walk away.

Obtain a pre-arranged loan before going to the dealership

Getting a pre-arranged loan before going to the dealership to purchase the car you want to buy. This is one of the best ways to prepare for the possible tricks and scams that the salesmen or the sales manager would use against you. Having a pre-approved loan or a check from the lender would make the negotiation for the price of the vehicle more favourable to you. This situation is quite similar to purchasing a car on a cash basis.

You can also demand for price cuts and other incentives by using you knowledge about the invoice price and MSRP of the car that you wish to buy. As soon as the salesmen or the manager realizes that you have a sufficient knowledge about the car, they might cease using their tricks on you. You can also negotiate by sharing offers from other lender so that they would be forced to catch up with the price offered by their competitors. Through this, you would be able to attain a significant amount of discount.

Negotiate for lower interest rate

In case your loan applications for financing from banks as well as from credit unions are denied and you have no choice but to obtain financing from dealerships, you should try to negotiate with the sales manager for a lower interest rate. Make sure to demand for it in a polite manner. Do not hesitate to make compromises but make sure that this would not be used against you.

Avoid extra charges and add-ons

Most salesmen and even the sales manager would suggest extra fees and add-ons during the negotiation. They would usually present these extra fees as important part of car buying so as to make you agree. However, these things would just increase the amounts you are going to pay since add-ons are created to increase the profit of dealerships from sales. Things such as extended warranties, rustproofing, and paint or fabric protection are very expensive when obtained from the dealership. In order to reduce the price of the car, try to avoid these extra fees.

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