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Negotiations of the price of the car

The first trick you should know when preparing for negotiations on the price of the car is to know the initial price of the car. Initially, this means investigating a little the suggested retail price by the car manufacturer.

It is also important for automobile price negotiations to know what the car in your region sells. For example, several years ago, when the Toyota Prius was new to the US market, the suggested retail price of the car had nothing to do with its actual sales price.

Because the car had a high demand and little supply, dealers were able to negotiate prices much higher than the standard sale price. The intelligent car price negotiator will be aware of these trends and will accept that additional cost of the car or opt for a lower-demand car.

The second trick that you need to know is that you must also have the invoice price of the car in hand when you start price negotiations. An intelligent negotiator will know that the price of the invoice is not what the merchant paid; the invoices reflect the price that the concessionaire would have paid if it were not for the incentives, rebates and factory agreements for the concessionaire.

It is important to know this in the negotiations of car prices, as some rookie negotiators will fall for the trick that they are getting a good offer since it is close to the price of the bill. Remember, the price of the bill is not what he paid and having him sell the car “below the bill” does not mean he is driving the dealer to bankruptcy.
The third trick that intelligent car price negotiators should know is that they should start negotiations based on the theory that they will pay cash for the car and that there will be no exchange. In an era of revolving credit, most car price negotiators do not understand that the swap concession is often calculated by less scrupulous dealers and that the base price of the new car increases.

In addition, car price negotiators should be aware that some car dealers will also hide the increase in car prices in financing. To avoid this, negotiators must be willing to discuss car prices as if financing was not necessary.

The person negotiating the price of the car should also be able to talk about the jargon and be familiar with the standard option packages. For example, a dealer might try to charge the costs of individual options for upgrades, including automatic transmission and air conditioning and power windows, although all three are normally packaged and sold at a reduced price.

The negotiator should also clarify if the price you are discussing with the car dealer includes all taxes and charges associated with closing the car purchase. Many new car buyers for the first time are surprised by the fees that are added to the cost of the car once the price has been discussed. Such tariffs generally not included in the automobile price negotiations include state sales taxes, license transfer fees and freight costs.

Finally, a car price negotiator must understand the art of negotiation and the reality of how little negotiation actually takes place. You must be willing to talk about the option to add options without price increases and you must also be willing to step foot down when the seller tries to increase the cost and value of the car by not adding options that the new owner neither wants nor needs.


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