How to talk to a car salesman
Don't be in a rush to buy and you'll get a better deal when car shopping.
Before you set foot on a car lot, take time to do your research first. Know what you want and how much it costs. Remember that knowledge is power.Start with research
Call the dealership
- Arm yourself with information, either from the company website or vehicle review sites.
- Use your research tools to nail down what kind of vehicle you want, including options.
- Familiarize yourself with the cost, not just the MSRP (manufacturer's suggested retail price). Find pricing information via edmunds.com, bluebook.com or cars.com.
- Know the current credit rating. Find quotes at BankRate.com.
Get to know your salesman
- Discern the availability of what you want.
- Try to nail down a price if possible.
- Calling ahead for pricing should help prevent you from jumping at the first offer or buying after the test drive.
Talk price not payment
- Explain what you want.
- Establish your expectations, like what do you want to accomplish in this meeting.
- DO NOT discuss personal financing, trade-in or payments.
Know your trade-in value
- Extending monthly payments DOES NOT reduce your cost.
- Negotiate the final price without the trade-in mentioned.
- According to several car buying websites, withholding this information can maximize your trade-in value and reduce the dealer's profit margin, maxmizing your savings.
Don't be upsold
- The ability to walk away is a powerful tool. The dealer works in volume and needs to move cars. Give him more incentive.
- Know that the warranties and other add-ons in the final process are 100% profit to the dealer.
- If you have to have any, haggle down as much as 50%.
Enjoy this article? Sign up for our free newsletters: