Negotiation classes are something that more and more of us are turning to as we try and secure a great deal. Can these negotiation courses also pay off when facing down your next car purchase?
Always Start Low With Pricing
Any contract negotiation training session will tell you to start at a lower price than you’re willing to pay. Never enter a dealership and tell the first salesperson you see what your budget is. As the buyer, you don’t want to give the game away and reveal your entire negotiating position before you’ve even got started.
State a price that is 15-20% lower than what you’re prepared to pay and the seller will know you mean business. Starting low is a negotiating skill that may feel a little unnatural, but it puts you on the front foot.
Never Say How Many Other Options You Have
If you want to get the best price you possibly can, don’t reveal your other options. Make clear there are other purchasing avenues available but don’t mention specifics. A seller will ask you what services and perks are included in those prices as they try and persuade you. It might be the case that you haven’t looked at another contract yet, however, give the impression that you have.
As the customer, it’s your priority to ensure you get the right price for you. Not the best price the dealer is willing to offer you. Remember what you learned in your negotiation training seminars and you won’t give in to pressure tactics.
Make Your Offer. Wait for a Response
One of the key lessons contract negotiation workshops will give you is the power of silence. Make your offer, and then wait for a response. Often when you go in low, the dealer will wait for you to start talking again. Dealers know when you’re trying to talk the price down, and they hope you lose your nerve.
The secret to bargaining is never to blink first If an awkward silence arises then just wait it out. If you submit a low offer, then do so as a statement rather than as a question. ‘I will pay $59,000 for this car’ sounds more confident than asking if you can. State your price with confidence and then wait for the dealer to come back to you.
After all, you can always get a car somewhere else. But this is the only forum for them to sell to you. Never forget this asymmetry, use it to your advantage during negotiations.
If You Don’t Hear the Numbers You Want, Stay Calm
Every dealer will come back with a counter-offer. Sometimes they might even restate the list price and mention their boss. If you want to get the intended reaction, the first thing you need to do is, stay calm. The moment you start looking nervous or talking too much, the dealer has you where they want you.
The art of negotiation and bargaining is all about dictating how the talks play out. If you can remain calm and difficult to read, you’ll be on the front foot. However, the moment you start throwing higher prices out there before you’ve received a counteroffer,you’ve lost the initiative.
Have confidence in your negotiation skills and stick firmly at your initial price. Never budge or voice opinions until the counter offer arrives. Once it does, you can move towards closing a deal quickly. Doing so will prevent the dealer from talking you into a higher price.
Closing the Deal
Contract negotiation seminars will show you all manner of closing techniques which will come in handy at this point. Once you’ve received the counter offer, counter it once and then look to close. This will show you’re in charge and happy to walk away if you don’t get the right price.
By countering and looking to close in one motion, you’re taking the initiative. There’s no better way to stop the endless back and forth than by making it clear you’re prepared to leave. The moment you do; you’re more likely to get the best price the dealership is prepared to offer you.
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