When you decide to buy a used car, you want to ensure that you have the best price possible. To get the best price, you need to be an expert at negotiation. You have to keep in mind that car dealers are experts. It takes an expert to tackle an expert.
It is crucial that you know how to play along and not let the dealers have the upper hand. To help you get started, here are some strategies for successful car negotiations:
Realise that knowledge is power
In any negotiation, knowledge is power. When it comes to buying used cars, the salesman usually has the most information. If you want to minimise the amount you pay for a used car, you do not tell the dealer what you are looking for or how much you are willing to pay.
Aside from that, you have to find out as much information about the car that you are eyeing. The trick here is to do research. Before you walk into the dealership, you have to spend time learning everything you can about the car. This will give you a solid start when you need to negotiate soon.
Choose cars that are at least 2 years old
It is recommended to choose a car that is at least 2 years old. If you buy one, it will look new enough. Aside from that, a 2-year-old car does not have a lot of problems. More importantly, the wholesale value of a car will drop after two years. This drop is between 45 and 55% of its original sticker price.
Set a “walking price”
As soon as you identified the right car and dealership, it is time that you step inside the dealership with a “walking price” in mind. If the dealer refuses to meet the price, think about walking away.
Make an offer
You must be aware that dealers put about 20% gross margin into the asking price of used cars. This means that they ask for 20% more than what they paid for the vehicle. The best thing to do is to offer 15% below the asking price. You need to tell the salesman that you know about the gross margin but you still want him to make a profit.
After revealing this, you should zip your lip and wait for the salesman to speak. With this, the salesman will see that you are confident with your offer. There are some salesmen who will say that your asking price is lower than the retail price. Your answer to this is you do not care about the retail price – you care about the wholesale price and how much the dealer paid for it.
Be ready to walk out
In any negotiation, it is crucial that you know when you will walk away. This is your power as a customer. Before stepping inside the dealership, you have t be flexible and avoid getting too attached to one car. Remember that there are plenty of choices out there.
Used car in el cajon will offer you many options. As a shopper, there are many options you can consider but the right deal will spring from a good negotiation skill. Do not be afraid to negotiate if you want to get the best price.