Negotiating a good price on a car is not a complex operation, even though it can sometimes feel like it.
Car dealers only have 1 aim: to fulfil revenue targets. They can go about this by shifting cars, and or selling car finance and accessories. So, we know what they want. With this in mind, the best way to negotiate a deal is to present a clear way for them to get what they want, while also getting what you want. Sounds easy right? It can be. There’s two main ways of negotiating for a car; ‘the haggle’ and the ‘steadfast’. The haggle involves going in low (as even if you start high car dealers are trained to bump you up) and working up to what car dealers call their ‘best price’. This article shows you how to do the other method, which can get you a far better deal, the ‘steadfast’…
It all comes down to preparedness before you walk in the door, and reducing the negotiation process. To do the ‘steadfast’ you need pick one offer, present it in a certain way and stick to it. You’ll need to know exactly what model car you want, how you’re going to pay for it, and at what price. If you do, the dealer won’t have any opportunity to do any selling, they will just have a simple offer, for which they can accept or decline. To make this as clear as day to the dealer, email your offer to them before you turn up, with your car model + accessories included. Then have a printed out version which you can put on the table, while stating this is my offer.
However in order to do this you need to be certain your offer is reasonable, so you need to put in the prep work and figure out the market rate, this is important. Do this via Trademe and other dealer websites by comparing like for like models sold by dealers. Once you have this figure, you need to show you can pay it. Have your auto finance offer confirmed and your preferred deposit amount ready. Once this is all in place you can present your offer to a dealer. From the dealers point of view they haven’t had to use their time to show you around models, or consult car finance companies. They haven’t had the opportunity to use any sales tactics on you either which normally take place during these processes. They just have a simple decision to make, and haven’t had to use any of their time to make it.
This is the moment when you will get a good deal and a below average price. At this stage, when you have your offer on the table and the dealer suspects you are serious about it, stick to your offer, which you know is fair, and be prepared to walk away. Unless your car is exceptionally popular, chances are they will call you and take you up on your original offer sometime later. Also, it may be obvious, but car dealers in Auckland make a lot of margin on complimentary products, like accessories and car finance. You can save yourself these margins by getting finance approved from an independent company and adding accessories to your car later at an independent shop.
Written by a former car dealer with two decades of experience, who now works in automotive finance in Auckland.
Auto Finance Direct, based in Auckland with a nationwide dealer network can provide you an online quote and instant repayment estimate. We specialise in flexible auto finance and have decades of experience. We believe that our success has been founded by great customer service and aim to provide the best customer service in the industry.