Negotiation Tips that may help you get the best price on your Vehicle Purchase

Always remember that in all transactions in which you are the purchaser you are in control of the negotiations. You are the one with the money and you are the person that needs to be convinced to enter into the transaction. A seller has a product that they want to turn into cash, your cash, so they are the person that needs to do the work to create an environment and price that the buyer , you, is willing to pay.

Tips for success:

Timing. If you are able to wait to purchase a vehicle it is usually best to wait for certain conditions. For example dealers are looking to make room on their lot at the end of the year (last quarter) for new models. This makes them more willing to take greater steps to decrease old inventory. So if possible wait until the last quarter before purchasing a new vehicle from a dealership. Also pay attention to the day of the month and week. Sales people are usually payed on commission and are often required to make a quota of sales. Since these quotas and pay periods usually end on a monthly basis it is usually to your benefit to wait until the end of the month.. or week.. to make a deal. Salespeople are usually extra motivated to move product near the end of the month to meet quotas and to qualify for bonuses and top off their paycheck. So because of pay scheduals and quotas you have a greater chance of getting a better deal at the end of the month.

Additional Tips

Do not reveal your budget unless you are willing to pay cash. Sales people that are aware of your financial positions, ie you don't have a down payment, may use that information to force a higher financing payment.

Always wait for the sales person to make the first offer. You never know what it is going to be and if you offer first they will know what you are willing to pay.

Always negotiate price based upon total selling price. Never negotiate based upon monthly payment figures, these do not reflect the big picture and may not reflect the best possible price.

Read all fine print, especially if you are going to finance or lease a vehicle. Pay careful attention to the interest rate, down payment and term length. Compare financed figures to the cash price to see the true cost of financing your vehicle as apposed to buying it outright.

Try and have the invoice price/cost of the vehicle before entering negociations. Use the internet but make sure your information is accurate and takes into account regional influences. Invoice price will let you know what the dealer payed for the vehicle and will give you an indication of how much the dealer is going to make. Yes the dealer has to make money on the sale, else it won't happen. Dealerships need to make money to survive, be honest about this and allow for the dealer to make a reasonable profit. Deals must always be good for both parties.

If you are trading in a vehicle in your transaction ask if the dealer will give you cash instead of reducing the purchase price of the new vehicle. If they are willing to do this... (never known it to happen) something is fishy.

Always shop on saturdays if possible. Saturdays are the busies days of the sales week and sales people are eager to complete sales quickly so as to move on to the next customer. If you come across as a hard bargainer it is likely you will not have to fight as long to get the true best price as the sales person does not want to loose too much time on you before moving on to the next, hopefully less educated buyer.

Do not be an asshole to your sales person. Show then some respect and they should reciprocate. Sales people are people too, they do not like being abused.

If negotiations bog down on price, ie the dealership will not drop price any further, then it is time to start negotiating extras. Ask for accessories, warranty, even free servicing. These options have very low cost despite their high price tag. Dealerships can usually add these services/options at very low cost.

Do as much research as you can before you go to the dealership. Use resources like the Internet, local classifies and auto magazines to educate yourself about the various options, prices, and economic conditions in your area.

Always remember to stay calm and that you are in control. Walk away at any time if necessary, you can always return if you change your mind or cannot find a better deal. Also no car is unique there is an equally good car next week.