Get advice on the best ways to prepare for car negotiations, whether you're buying used or new.
-When people hear about negotiating, just the word freaks them out. So, what I tell them is if you know the numbers behind the deal, you're gonna be a good negotiator. What this means is you should take a moment to look up the Edmunds.com True Market Value price. We call this the TMV price. Knowing the TMV price is going to give you confidence. It's gonna be a little bit like knowing what somebody else has in their hand when you're playing poker against them. Negotiating with a private party is a lot easier than negotiating with a dealer. Let's say they're offering their car for $15,000. Look up the TMV and offer them slightly less, offer them $14,000. Usually, you'll just meet somewhere in the middle and you'll have a deal in a few minutes. When you negotiate with a dealer, you have to understand that you're dealing with a pro. We definitely recommend going through the Internet Sales Department because then you don't have to negotiate face to face. You can do it either over the phone or sometimes even by e-mail. -Okay. I will call you back. Okay? Thanks, bye. -If you do go to the dealership and you wind up negotiating face to face, you may find yourself facing one of the car salesman's name tactics and that is what they call the four-square worksheet. This basically has four pieces of information and they use this information essentially to confuse you. What they do is they get you to commit to a monthly payment, a cash down payment. They name a price for their vehicle and they try to state a price for the trade-in vehicle. There's a couple of ways to respond to this. One of them is, do not commit to a monthly payment. The way to avoid this is before you go to the dealership, if you can, make sure you get pre-approved financing. Then, when they say-- -How much of the monthly payment can you afford? -You just say-- -Well, I'm actually gonna pay cash. So, I just wanna talk about the overall price of the car. -Oh, okay, great. -Remember, if you don't like the way the negotiation is going or you feel intimidated, just turn and walk away because this isn't the only car in the world. You can go out and find a better dealership and probably a better deal. Just remember, negotiating is a game. So, you should have fun with it, and if you do, you're probably gonna get a much better price on your next car.