The Power of Negotiation – Saving Cash on Your Car

Cars are expensive. That applies to everything from basic maintenance to buying one from a dealership. However, you can cut those costs quite a bit if you are able to negotiate. Negotiation is something of a dying art these days, as most buyers don’t have the patience or knowledge to haggle. However, for those who master these skills, considerable savings await. What should you know? Here’s a quick look.

Auto Buying

Perhaps the most important area where you need to develop negotiation skills is in the arena of buying a new car. Whether you’re after the latest model, are working with a used car dealer, or buying from a private seller, the following tips will help.

Be Informed – Information is the key to negotiation in the automotive industry. If you’re not informed, you have nothing to stand on. If you’re considering buying another vehicle, you’ll need to know several things, including what the same or comparable vehicles are selling for at other dealerships. Once you’ve decided on a particular vehicle model, take some time and shop around. Find out what it’s going for from different dealers, and what incentives are being offered.

Armed with the information above, head down to your chosen dealership and negotiate the best deal for you. Let the salesperson know that the car is available for less and where. Most of the time they’ll be happy to meet or even beat their competitors.

You Have the Power – One thing that most buyers forget when dealing with car lots is that they’re the ones in control, not the salespeople. You can exercise that control in a number of ways, and showing the salesperson that you know you have the power in the exchange will help you command a lower price. For instance, don’t be afraid to walk away from a deal. The moment the salesperson sees you’re serious about it, the price will come down.

There’s Always Wiggle Room – Don’t be fooled by “final price” notices or salespeople who tell you that they simply can’t offer less than the sticker price. There is always wiggle room in the world of auto sales. Sticker price is nowhere near what the dealership actually paid for the car, so don’t be afraid to negotiate the price lower. If necessary, tell the salesperson you’re going somewhere else. Always remember – the sticker price is NOT the final price of the car, and there’s always room to knock it down.

Don’t Use Dealer Financing – Dealer financing seems like the most convenient, expedient option when buying a new car, and that’s what the dealership is counting on. Don’t fall for it. You’ll pay more in interest with dealer financing than if you got your own funding, and you’ll find that it’s common practice for dealerships to add interest points just to pad their profits (and this is legal). Get your own loan from a credit union or your local bank and you’ll save big without having to negotiate at all.

Auto Service

While you might not be able to negotiate the price of all automotive services, there are a few tips that can help. For instance, considering bringing your own oil to your service provider – most will discount the price because of this. If you have several vehicles, consider asking about a group/volume discount for your services. If you can guarantee that you’ll bring all of your vehicles to the shop for servicing, most of the time they can offer at least some discount. Finally, shop around for the best deal on the service you need, and then find out if the service provider you prefer will price match.

Don Elfrink is the owner and operator of AutoMatStore.com, that sells custom auto mats throughout the nation. Before AutoMatStore, Elfrink was the operator of an automotive production site. AutoMatStore focuses on logo, carpeted, molded and all weather floor mats.