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Negotiating
A well prepared consumer has little need to get involved
in the back and forth negotiation that has characterized car sales for the last generation. It is, after all, the
most hated part of the car buying process--the "would ya take?" and the "if I can get it for you
for $____, would you buy it now?" banter from car salespeople. If you are uninformed, there is always the
fear that you will pay too much when you buy a car (and honestly, you probably will!)
If you have taken the time to prepare yourself (review our preparation, "homework" and pricing pages) you will have the jump up on those who have not done the
same. As you walk confidently into the dealership, you can chuckle at the poor souls who have spent the last 3
hours in a verbal wrestling match with a salesperson and are now frustrated and irritated. There is too much information
available to the consumer today to waste time on yesterday's style of marathon negotiations.
If you need (or want) to negotiate, you must do so in two separate segments:
- The price of the new car (expressed as Invoice + a certain
amount, minus any dealer incentives and holdback. Questions? See the glossary of pricing terms.
- Actual cash value of the used car (what it is worth if
it were a pile of dollar bills--not including any overallowances)
Salespeople hate to negotiate that way. They want you to
negotiate on the difference in price between the new car and your trade in (it can be a lot more confusing
that way), or, better yet (for them) they want you to negotiate on payments.
 Never negotiate on payments. Ever. Don't even consider it!
This goes for leasing as well as buying a car. If a salesperson asks you "what payment are you looking for?"
or "what range do you want your payments to be in?" your only response must be: "I have no intention
of negotiating on payments" (said with a knowing smile). "If the price you intend to sell the car to
me for is acceptable, and if the trade value is acceptable, I will deal with the payments at that point."
(Remember, you have done your finance shopping upfront and already know how much a certain dollar amount will convert
to in a monthly payment).
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