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1 year ago

Car Dealers Want to Make You Happy

As a result, shoppers sometimes agree to a deal too quickly and end up regretting it later. To avoid that unpleasant outcome, follow these five hard-and-fast rules.

1. Know your numbers. Te sticker price, or retail value, on an automobile, usually awards the dealer a profit margin of between 10 and 20 percent. But because sellers can still make a tidy profit charging much less than retail, they're almost always willing to negotiate. Depending on the dealer, most are satisfied with a margin as low as 5 percent. As the seller, it behooves you to learn the dealer invoice price (what the seller paid). You can then add five percent and negotiate for that price with complete confidence.(adsbygoogle = window.adsbygoogle || []).push({});

These days, with the advent of the Internet and the level of research it provides the consumer, car dealers want to make the customer happy. It used to be that if you wanted a specific make of a vehicle, there was only one game in town. Now, using search engines designed specifically for automobiles, you can find every single model in a 100, 200, or even 500-mile radius. You know the safety rating of that model, the reliability history, accident history, horsepower, number of airbags, and the amount of legroom in the back seat.

Car dealers understand that consumers know this. They know that if you walk into their dealership and they don't provide you with the best service possible, you can find the same vehicle within 30 seconds using your phone. Therefore, they want to make customers happy.(adsbygoogle = window.adsbygoogle || []).push({});

Consumers tend to be wary of car dealers. The common consensus is that salesmen set out to deplete pocketbooks and offer disadvantageous prices to their customers. This assumption is far from the truth, however. Dealers expect and welcome their customers' negotiation, and they look forward to striking deals that allow both sides to prosper. The negotiation ball is in the consumer's court. It's up to the consumer to know how to negotiate to find the best outcome possible. The following are three essential tactics to keep in mind when sealing the deal over a vehicle.

1. Realize that Every Sale Counts

Car dealers make the bulk of their profit from commissions. This is a useful tidbit to consider when negotiating for your dream vehicle. It is not in the seller's best interest for you to walk away from the deal, so if you negotiate within reason, you will likely be able to drive that car off the lot with a price that works for you. Don't be afraid to drive a hard bargain. Shoot below your preferred price range to see how much of a discount you might be able to score. Quote an offer equal to 25 percent off of the asking price. The seller won't choose to withhold the sale on principle if your suggested price is lower than expected. His profession dictates that he should expect you to negotiate a lower price, and he is trained to counter your offers until you meet in the middle. Don't pay too much for what you want, but don't walk away from it either.(adsbygoogle = window.adsbygoogle || []).push({});

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