The following is a guest post by Kat Tretina. Kat is a freelance writer who became obsessed with personal finance after realizing how ridiculous her student loans were. She has her own site at www.ktretina.com. Enjoy!
When you’re an introvert, the thought of negotiating on anything can be terrifying. Facing off against a car salesman ranks up there with undergoing a root canal without anesthesia. But if you don’t negotiate, you will end up paying thousands more. Luckily for introverts, there is a way to negotiate effectively and get a great deal, without leaving your home. You’ll be in and out of the dealer within a half hour driving your new car.
We’ll cover the process so that you will be prepared for your next car purchase.
Do Your Research
This plan only works if you know what you want. If you think you want a sedan but aren’t sure what make or model, this process won’t work. You need to have a specific car in mind. Go onto sites like Kelley Blue Book to see what other people in your area have paid for the model you’re looking for. Kelley Blue Book will show you what a great deal looks compared to a poor one. This will give you a gauge of what to shoot for during negotiations.
For this example, we’ll use a basic Nissan Versa (see below for screenshot). From this you can see that MSPR is 12,835, but people are not paying close to that. Instead, a fair price is considered to be between $11,573-$12,182, with the average at $11,878. We’ll be looking to beat that.
Plan Your Targets
Next, find dealers in your area that stock the car you want that have a decent reputation. I recommend identifying at least 5-10 dealers. Then pour yourself a cup of coffee and get ready to spend some time on email.
Send each dealer a note with this script:
“Hi there,
I am interested in buying the 2016 Nissan Versa, model S. I will definitely be buying it one way or another on Saturday, but I’m looking for the best deal in the area. Can you tell me what your best out-the-door price is—inclusive of all fees?”
You will get very prompt responses. Some will try to call you; tell them you prefer to keep things over email. Others will try to talk about monthly payments or financing and some will decline to negotiate over email at all, so scratch them off the list. But several will get back to you with a price. Go over each offer to ensure the price is inclusive of all fees.
Once you have a few offers, send a note to each dealer in turn. Tell them what the best offer is and ask them if they can beat it:
“Hi there,
City Nissan said they can give me the Versa for $11,800 with everything included; can you give me a better deal?”
At that point, some dealers will bow out. But others will come back with a lower offer, in which case you repeat the process again with the other dealers until everyone has bottomed out. At that point, you should be at the lowest end—or even lower—than the best price Kelley Blue Book listed.
Time to Pick Up Your Car
From there it’s very easy. Let the dealer know you’re on your way so they can clean up the car, print off the email with the final price you agreed to and stroll into the dealership. Show whoever comes to help you the email and they will connect you with their sales manager.
If they try to change anything you agreed upon—if they claim the car isn’t in stock, they have a similar model with certain upgrades, etc—you are to stand by that email and walk out if necessary. You have an offer in print, so this rarely happens at reputable dealers, but you should be prepared in case of surprises.
Once you know the car you want at the price you agreed on is there and ready, then you can discuss financing options if needed. Again, be careful here that they stick to the out-the-door price you agreed on and ensure they don’t add on extended warranties or service packages. Keep saying no until all of the paperwork is done.
With all of the negotiation and prep work out of the way, you should be in and out of the dealership with your new car in less than an hour. Congratulations! Despite a desire to hide from negotiations, you successfully argued down the price and got a great deal. This is a great way to buy a car without the hassle and stress of a high-pressure salesman.
How about you all? What have you found is the best approach for negotiating when buying a car?
Share your experiences by commenting below!
