Car buying has transformed over many decades. Today, you don’t have to haggle the price of your car if you’re buying new.
If you want to purchase a used vehicle, you do have the leeway to negotiate the price to see if you can spend a little less to have the vehicle you want to drive. Whether you’ve haggled before or you’re new to negotiations, you should use these tips to help get the best deal.
A Few Tips from Dave Ramsey
Dave Ramsey is popular for his no-nonsense approach to money management. His books have sold millions of copies, and he has hosted radio shows and podcasts around the various subjects that involve money. His rules to remember are:
1.The person with the most information usually wins
2.The person with the most patience wins
3.The person with the most options wins
The question for you is how you can become the person that fits all three categories when you’re ready to enter the car buying process for your next used vehicle.
Gather Information
Do your research on the vehicle that you’re looking at. You can and should ask for the VIN of the vehicle so that you can obtain a complete vehicle history report. It’s also a good idea to understand the value of this vehicle in various conditions. Before you meet with the seller, understand what this car brings to your life.
Don’t Trade; Sell Outright
If you’re in the car buying process and part of that process will be to trade your old vehicle, sell it instead. Many dealers have advertised they will buy your vehicle even if you don’t buy from them. Typically, you’ll get more money out of a straight sale of your vehicle than you will if you trade it. This also allows you to show the money from the sale as a down payment, which offers more value to your financing application than a trade.
Get the Car Inspected
Even if the place you go to buy your next vehicle is a dealership with a service department, you should have the vehicle inspected by an independent mechanic. The only time this isn’t worth the cost is when you’re looking at a certified pre-owned model. It will cost you a little bit of money to have the vehicle inspected, but you’ll have an idea of what’s wrong with it and can make an informed decision to either haggle for a lower price or choose a different vehicle altogether.
Take Your Time when Car Buying
You should never be in a hurry when buying a car. This can be a long process, and it’s worth the time to make sure you get the best deal. The worst situation you can be in is to need a vehicle right away. This makes you seem like chum in a sea of sharks when you’re at a dealership. Take your time, relax, and find the right vehicle for your driving needs. Your patience will be rewarded with the right vehicle that will meet your driving needs.
Be Ready to Walk Away
Just because the vehicle you’re looking at is the one you want doesn’t make it the right vehicle for you. The seller could be asking for too much money, it could have been in a wreck and not repaired properly, there could be missing maintenance records, or it might not drive just right. You have the ability to walk away. There are plenty of options for you so that you can find the right car to drive. This is an important part of the car buying process.
This is a Business Negotiation
When you keep emotions out of the process, you have a much better chance of paying a lower price. If you show your excitement or act like you’ve fallen in love with the used car you’re looking at, you’re going to lose any leverage you might have. Buying a car is a business transaction, and that’s how you need to approach this negotiation.
Say Less and Get More
Sometimes, you can cause another person to talk themselves into something they might not have otherwise. You can do this by simply being quiet. When car buying, apply the “less is more” philosophy to the words that you use. You could simply tell the seller the price of the car is too high and let them talk from there. You’ll be amazed at how quickly they will talk themselves down on the price.