Car Negotiations: A Woman's Right to Negotiate!

By Sheronde Glover, Car-Buy-Her Editor in Chief
through interview with Car-Buy-Him expert Sheldon Brown

I had just closed the deal, or so I thought.

That'll be $3,200, he said.

I'll give you $2,500, I said.

Done. Now the deal was closed. Whew! That was close.

Ladies, we have a right to negotiate. But the question is, why don't we? Whether you're in the market for a new car, a new relationship, or a new job --- you can, and should learn the art of negotiation. Since so few women seem to enjoy negotiating and even less put it into play, we thought we'd ask a seasoned male negotiator, just what it is that makes a good negotiator and how can we, as women become better negotiators in everyday life as well as in our car life.

The Key to Negotiation . . .
The buyher needs to always remember that the seller needs them just as much as they need the seller. Right now women are purchasing 50% of new cars and 48% of used car. Trust me when I tell you that the market needs you.

A Good Negotiator . . .
1. Knows what they're willing to pay;
2. Is able to skillfully get the price to what they want;
3. Is able to take the emotion out of the sell.
This is the one area they say that we miss it, ladies --- Getting too emotionally involved. The one thing that seems to both make us and break us. The truth of the matter is, we have to learn how to let go of the emotional attachments in order to negotiate and get the best deal for ourselves.

Steps to the Negotiation Process . . .

1. Narrow your focus - Know what you want. That's one problem we sometimes have as women. Okay, maybe I'm the only one. I'll admit when I went to buy my car, I didn't have a clue as to what type of car I wanted, but once I became focused and realized I needed to narrow my search, it made a world of difference.

2. Do the research on the car or cars - Before you even consider going to a dealership or answering a classified ad for a car, do your research. Find out as much as you can about the particular car(s) in question. Know what they are selling for and what types of flaws they may have. Focus in on the things you want in a car.

3. Establish what you want to pay based on the car's value - You must have a good idea of what it is you can afford and are willing to pay, but keeping in mind that the dealer/salesperson has to make some money off of the car and that it does have some value. Keep both of these things in mind.

4. Be prepared to walk away - You must make up in your mind that you can and will walk away if the deal isn't the one you want. This can sometimes be really difficult, especially when you have your heart set on it --- be it a car, a house, or whatever. The bottom line is there are other sellers and there are other buyers, but you will lose if you compromise with the price you've established for yourself. Don't do that, it can put you in a place you don't want to be. Trust me, long after that new smell wears off, you will be feeling frustration and resentment with a note you feel is more than you should be paying. If you're having challenges in this area, repeat this to yourself: Yes, I can walk away. No, I don't have to have it. I will be okay.

Things to Remember . . .
1. Wherever you're looking there is somewhere else.
2. Everything has a markup so everything, truly is, negotiable.
3. When you find something you want, replace emotions with logic. (Ex. excitement, joy, satisfaction vs. convenience, price, need).

The Process of Logic . . .
Example: Our male negotiator decided to buy a used luxury car and narrowed it down to three choices: Mercedes, Lexus, Acura
The Mercedes was priced at $13,900 (without tax). Prior to looking at the car, he researched the reliability of the car, pricing, retail, trade-in and private seller value. In his research he found the trade in value was $8,500 and the retail value was $14,000, approximately a $6,000 difference. He recognized that the seller has to pay for his business through sales, taxes, etc. so there will be some mark-up. So the negotiations began. When it was all over he ended up paying a total of $13,200 which included the title, taxes, and a full tank of gas.

Generally Speaking . . .
If you begin to question the price, you can almost automatically get $700 - $900 off. A simple approach: "That's kind of high, isn't it?" will usually get the process started.

Tough Negotiation . .
When playing it tough in the car negotiation arena, knowing you have the financing for your car is important. No research and no financing poses a problem. When considering your options, always ask the salesperson "Tell me the cash price". That let's them know that you do indeed have financing.

How Salespeople Get Buyhers (Buyers as a whole are victim to this as well) . . .
Don't be fooled by monthly notes. Notes and monthly payments are really irrelevant because most dealerships will put you at the note you want (based on the price), but that could be over 4, 5, or even 6 years. What you really want to know is the cash price, then you have a clearer picture of what you're really paying.

Thank you to Car-Buy-He Expert, Sheldon Brown, a financial services and sales professional who has sold and negotiated pretty much everything.