ThatGuide.com

Ever walk into a car dealership, spend time looking through the cars, take a test drive and then sit down to “close the deal”. You put on your best game face and try to work the deal. Well, do you realize that by this time, you are probably already a sucker? As you talked to the salesperson, took a test drive and understood options, they were asking you questions. How much do you want to spend? What are you trading in? Will you be financing? What kind of payment do you want? All of these questions help the dealer get the upper hand. Remember, as in most negotiations, he who talks first loses. So, especially if you have a trade, here’s how to seal the deal.

First, never express interest. Simply look at cars. As the salesperson starts asking you questions about how well you or your spouse likes the car, ask simple questions like, “Can you explain how the horn works on this model” or “Where is the spare?” Anything to deflect the conversation from uncovering anything about you. 

Do your homework! Know before you go in what features you want, how much you want to spend, what loan rates are and how much your trade is worth. You can do most of this through your bank. My credit union offers a service that will research cars, provide rate information and connect you to Kelly Blue Book to get your trades wholesale price.
When you finally get ready to negotiate, walk away. Don’t let the negotiation happen in the dealership. They have you, your spouse and your kids hostage. This only serves to wear you down. The longer they spend, the more willing you will be to sacrifice the deal. Don’t tell them you want a trade. Let each deal stand on its own. So, when you are ready to deal, walk away. Tell them you need to leave and that they should work up their best deal possible and that they should fax you the deal when they are done. Then wait. Wait for the deal. When they finally fax you back the deal, drop in the dealership and ask your salesperson to give you a value for your trade in. You should already know where this will come in since you will have looked it up on Kelley Blue Book.

Now you have all the pieces. You have a written offer and you have a trade-in value. Now leave, again! Walk away. Call them back in three days and tell them you need a better deal. Give them one shot. If they don’t meet your requirements, walk away for good and go to another dealership. They will give you a good deal and if they don’t they will call you back after you have walked away and offer you a better deal.

They need you to buy a car from them. You need a car, but not from them. You have the power, not them. Stick to your guns and you’ll win!

Steps

1. Do your homework

2. Learn rates, features and models

3. Research used car prices

4. Don't express interest

5. Distract the salesperson with nonsensical questions

6. Ask for the deal

7. Walk away

8. Get a faxed offer

9. Bring in your trade for evaluation

10. Combine

11. Combine the offers and ask for the deal

12. Walk away

13. Be quiet for three days

14. Ask for the deal

15. Walk

16. Walk away if you don;t get the deal you want

Tips and Tactics

• Don't give out personal information

• Don;t answer their questions

• Do your homework

• Don't be afraid to walk away

• Realize you have the power, not the dealer

Links to Resources

• www.kbb.com