Wheeling and dealing when negotiating the purchase of a new car has taken on an altogether new dimension today. In previous years, consumers had little knowledge of a dealer's bottom line cost, so the back and forth exchanges between buyers and sellers were based on guesstimates and previous experiences and not on hard facts. Today's methods have changed. Here are three helpful tips to help you negotiate in today's world.
Do the necessary homework. There are a number of very specific sites on the Internet devoted to revealing all the factors that go in to a dealer's net cost. In most cases there is a dollar amount on the invoice usually 3% of the invoice price referred to as the hold back. Once the bottom line has been determined, it is a simple process to add the 3% hold back amount to the net cost. That will be your offer.
Use your trade-in to your advantage. With a newer trade, 2-4 years old; it is likely that the dealer will want to acquire it for his used car lot. Older used autos provide less opportunity for a dealer to make a more substantial profit and will probably be wholesaled out. The web can provide current used car values for use in the negotiations.
Now, all the pieces are in place. You know the amount you are willing to spend and what your used car is worth. The dealer knows that he is working with a very savvy buyer. Present your figures to the salesman and indicate that it is your final offer. Say no more and be prepared to walk away if your terms are not acceptable.
By following basic steps, you have made it through the entire buying process. You had an idea of what you were willing to pay for your new car and exactly what your used vehicle was worth. You also sensed that your sales person had no intention losing the sale. With all that working in your favor, there was no question about the outcome of your efforts.
Do the necessary homework. There are a number of very specific sites on the Internet devoted to revealing all the factors that go in to a dealer's net cost. In most cases there is a dollar amount on the invoice usually 3% of the invoice price referred to as the hold back. Once the bottom line has been determined, it is a simple process to add the 3% hold back amount to the net cost. That will be your offer.
Use your trade-in to your advantage. With a newer trade, 2-4 years old; it is likely that the dealer will want to acquire it for his used car lot. Older used autos provide less opportunity for a dealer to make a more substantial profit and will probably be wholesaled out. The web can provide current used car values for use in the negotiations.
Now, all the pieces are in place. You know the amount you are willing to spend and what your used car is worth. The dealer knows that he is working with a very savvy buyer. Present your figures to the salesman and indicate that it is your final offer. Say no more and be prepared to walk away if your terms are not acceptable.
By following basic steps, you have made it through the entire buying process. You had an idea of what you were willing to pay for your new car and exactly what your used vehicle was worth. You also sensed that your sales person had no intention losing the sale. With all that working in your favor, there was no question about the outcome of your efforts.
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