Negotiating at the Dealership
8 Tips for Getting the Price You Want

Negotiating at the dealership is par for the course as they say. In the industry of automotive buying and selling it is to be expected. Unfortunately, far too many individuals, particularly women don't take advantage of this simple tool for getting the price you want or at least somewhere close to it. The problem with negotiating is that many see it as a negative activity as opposed to just an activity for getting what you want. Even if you're not that good at it, giving it a try will make you feel less apprehensive and more empowered as a consumer. After all, it's really just about asking, right?

Let's start by defining negotiation and then exploring some ways to make negotiating a little less intimidating. Here's a definition found at wikipedia.org

Broadly speaking, negotiation is an interaction of influences. Such interactions, for example, include the process of resolving disputes, agreeing upon courses of action, bargaining for individual or collective advantage, or crafting outcomes to satisfy various interests.

Using our definition, here are 8 strategies to use when negotiating at the dealership:

1. Remember the Focus. You are bargaining for the best possible price that allows you to get a fair price and the dealership to make a profit. This is the ultimate in a win-win situation.
   
2. Interact don't Argue . It's not necessary to argue. This is contrary to the results you want. If you find yourself in a situation where the dealer sales person isn't budging and doesn't seem reasonable, the better option is to leave. You want win in a scenario like this.
   
3. Determine Terms up Front. Stay away from extended terms (5 and 6 year terms) and move towards shorter terms (3 or 4 years) for the best outcomes.
   
4. Negotiate Processes Separately. In this instance you don't want to bundle because it doesn't save you money. You do much better by keeping the processes and transactions separate; purchase price, trade-in value; and financing.
   
5. Factor in Your Down Payment – The more you are able to put down the less you'll pay over the course of the term. Consider putting down tax, title, and fees, minimally.
   
6. Negotiate Invoice not Sticker – If you're buying used you want to negotiate around the invoice price as opposed to the sticker (MSRP - manufacturers suggested retail price)
   
7. Don't Negotiate Features - Before negotiating, consider the car you want and the features you need in the car. Don't negotiate around features and extras, add-on packages, etc.
   
8. Eliminate Distractions – Kids and negotiating don't go very well together. When negotiating you want to remain focused, so the less distractions the better.
   
9. Don't Play the Game – They're better at it so don't get entangled in the game. The goal is to get the best deal and the best deal is one you're comfortable and happy with.