Buying a new car involves working with a new car dealer, and this can be a very intimidating experience for many consumers. They just get the feeling that they will be ripped off no matter what they do. But that is not true. If you understand the psychological components of the buying process you can be well prepared to negotiate a great car price.
The first and most important psychological component for success in buying a new car is to stay in control. Now, this may not always be easy as car salespeople are specifically trained to gain control and keep it throughout the whole procedure. But you have to turn the tables by being very well-informed, and having a winning game plan in advance.
The first way to be in control is to know exactly what vehicle you want to buy and then find out exactly what you want to pay for it before you ever begin shopping. You can get this information by researching online at various car sales and auto buying guide sites. You can quickly learn what is a fair price to pay for almost any new vehicle. This will be critical information to help you stay in control of the sale. By knowing what you want to buy, and the amount you are willing to pay for it in advance, you can prevent the salesperson shifting your attention away to an unfamiliar model that you don’t know much about.
The next step to stay in control is to only discuss a straight cash deal initially. Do not allow the salesperson to discuss monthly payments, financing, trade-ins or anything else at this point. You basically just want to tell them how much you will pay them for the vehicle you are interested in, and see if they will accept it. If they don’t, just leave and go to another dealer that has that model and make the same offer. The negotiation is very simple, either they accept your offer or they don’t.
After getting the price you want to pay for the vehicle you want to buy, then ask how much they will allow you for your current vehicle in trade. If they don’t offer a fair trade-in value as established by your advance research, leave and go to another dealer and start the process over again. Actually most dealers don’t want you to leave because they know that they will most likely lose the sale, so they may start finally making acceptable offers if they know that you are serious. When you find a dealer that will sell you the car you want at the price you want, and who will also allow you a fair trade amount for your vehicle, make the deal.
If you are smart you will already have your own auto loan in place and so all you need to do is pay for the new vehicle with your loan money and sign the ownership papers. Do not allow the dealer to add on expensive accessories or extras to make more money, and try to stay out of their loan office as much as possible as this is a place where they often try to upsell you on things you don’t need. Just meet all attempted upsells with a firm, but polite “no”.
If you stay in charge throughout the car buying experience, you can understand clearly every aspect of the deal you have made, and you can successfully negotiate a deal that you can be proud of.