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November 12, 2015

The Lost Art of Effective Negotiating

If you dislike negotiating with a salesman when buying a used car you’re definitely not alone as most people say they dislike it immensely. Therefore many new- and used-car dealerships have taken to providing what is called “no-haggle pricing,” in which the dealership says it won’t engage in price negotiation with customers and that the sticker price of a car is, indeed, the final price of the car.

Many people dislike negotiating over the price of a car because they believe that the salesperson is far better at haggling than they are. They are therefore worried that the salesperson will “win” the negotiation and that they – the car buyer – will end up paying far more for the price of the car than they would like or would have if the dealership offered no-haggle pricing.

Since many dealerships have adopted the “price you see is the price you get” stance, many customers avoid “regular” dealerships all together, therefore becoming weak in their own haggling skills.

And this is a shame, because it’s definitely possible today to engage in a negotiation with a dealership’s salesperson and come out of the interaction ahead.

Honestly, It’s True: YOU Are in Charge!

First of all, understand that the salesperson wants to sell you a car. And, yes – of course – he or she would like to sell you the car at the highest price. But remember that first statement: the salesperson wants to sell you a car. There are many car dealerships from which you can choose and the salesperson knows this. You, in another words, have many options when it comes to the sale of a car. The salesperson, however, only sees so many potential customers in any one day: his options are far fewer than yours.

The salesperson may – or may not – be highly schooled in negotiation skills. But you can walk away and find another dealership. The salesperson can’t as easily find another customer. He, in other words, is “trapped,” while you have freedom.

Put that way, do you now feel more empowered within a price negotiation?

We offered some car-buying negotiation tips in an earlier blog post, so we won’t repeat ourselves here. We would just like to urge you to reconsider any preference you may have for visiting just no-haggle auto dealerships. Many of them do price their cars a bit higher than dealerships who welcome price negotiations. Therefore, if you’re willing to do some “haggling” with a salesperson while keeping a price firmly in your mind, refusing to go over it and being willing to walk away from a car if you and the salesperson can’t come to a price with which you feel comfortable, you should be able to easily find a great car at a price you set.

Many people come to PAACO because they’ve had some financial difficulties in the past and need some help finding an affordable used car. That’s why we look at our salespeople as more like finance experts and we work hard to create a financing plan that works for you. Give us a  call at 877-810-4555 for more information.

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

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