Getting behind the wheel of a new or pre-owned car is an exciting experience. But most buyers don’t want to overpay for this purchase, so they may engage in negotiation tactics to get the price down from its starting point. Negotiation isn’t usually a very enjoyable experience, and it oftentimes puts people outside their comfort zone. Follow this guide to learn more about easier ways to negotiate a car price, even if you’re not in person at the dealership.
Benefits Of Negotiation
Learning the art of negotiation can benefit you in many areas of your life. In the business world, negotiation is an essential skill, as it allows people to potentially earn higher wages and pay lower prices for goods and services. However, it’s also a process that can cause many people to feel uncomfortable. In American society, we rarely haggle or items we plan to purchase — you probably don’t walk into the grocery store and try to negotiate a lower price on tomatoes. But negotiation can still happen on certain purchases, and vehicles certainly fall into that category.
By negotiating the price you pay for your vehicle, you may be able to pay less than the asking price. Since a car is something you will use often, likely every day, you want to make sure you’re getting the best possible value. Additionally, a vehicle purchase is an investment that depreciates over time, so overpaying can cause financial strain.
Tips To Make The Negotiation Process Easier
When it comes to negotiation, the average car buyer would probably rather avoid the discomfort of haggling. However, by following a few simple tips, you can be better prepared for the negotiation process and feel more confident in your skills.
Research First
The first key to a successful price negotiation is research. If you don’t know what similar vehicles are selling for in your area, you won’t have a number to fall back on when talking to the salesperson at the dealership. Your research process should include looking at the current market value of the car you want to buy, potential incentives, estimated sales tax and local fees, and the trade-in value of your car, if applicable.
You can find more information about the current market value of the vehicle you plan to buy on Kelley Blue Book, which is one of the most trusted sources for automotive market values. This site also houses expert car reviews and fair purchase prices, backed by over 90 years of pricing expertise. Compare what you find on KBB’s site with information about market values on other sites, such as TrueCar and Edmunds.
Look At Incentives
Any potential incentives for which you may qualify can help offset the purchase price of the vehicle. Most incentives apply to new car purchases, although you may be able to find options for pre-owned models. You might qualify for discount options like recent graduate, military or first-responder, loyal customer, or holiday-related incentives. The manufacturer will list any available incentives on their website, and local dealership websites will usually reflect this same information, as well.
Add Local Fees and Sales Tax
Local fees and sales tax can drive up the purchase price of a vehicle more than you may expect. In an area where the sales tax is 9% on a car, the added cost on a $30,000 vehicle would come in at $2,700. You should also ask for information on any local fees that apply to your purchase so you know what the final cost will be. These added costs may not be included in a quote, but they will impact your total or monthly payment.
Trade-In Research
If you plan to trade in your current vehicle, doing some research on its value is also beneficial. You can use those same websites mentioned above to get an estimated market value. Doing your own research to understand the car’s worth can help you walk into the transaction feeling more prepared and knowledgeable about what you should ultimately pay.
Negotiating A Price Online
The process of buying a car has changed over the years, and the prevalence of technology is a driving force behind those changes. Negotiating online allows you to present the information you’ve found in your research without feeling the pressure of an in-person interaction. If you prefer this approach, simply contact the dealership and ask to speak to the online sales department.
In most cases, the online negotiation process takes less time than negotiating with a dealership representative in person. Since the online automotive sales market has increased substantially, more dealerships are willing to provide pricing information by email. You don’t have to wait around the office when you negotiate via email, so you can go about your normal day while waiting for a response. The time-saving aspect is what drives many car buyers to choose online negotiation over in-person interactions.
A side note: You should always test-drive a car in person before beginning the negotiation process, as you want to be sure that the vehicle fits your needs and is comfortable to drive.
Image via Flickr by transcendethics
How Panama City Toyota Approaches Negotiation
At Panama City Toyota, we’re proud to be a leading automotive dealership for buyers in the Cincinnati, Ohio, area. Our experienced staff will help every customer get behind the wheel of their dream car, and we’re open and used to discussing price negotiation both online and in person. If you’d like to utilize the tools mentioned, whether in-person or through our website, don’t hesitate to contact us. We want to help you find the right car for your lifestyle as well as ensure that it fits within your budget.
In addition to our online resources, we also have an experienced and dedicated finance team who can assist with any needs related to the vehicle purchase. We strive to provide the best sales and service to give you the best possible experience when shopping for a new or used car. Don’t just take our word for it — check out our customer reviews to see what people say about us and the stress-free car-buying experience at Panama City Toyota.
