The Secret To Negotiating a New Car Deal
30th May 2020 – #7 in New Car Buying Tips
So what is the secret to negotiating a new car deal? Well, it’s all about positioning. If you’re not in a position to negotiate it doesn’t matter what you know or say, you simply won’t have the leverage to secure the best new car deal.
When negotiating a new car deal, price must come last. Of all of the factors that could influence the outcome of a new car negotiation, positioning is one of the main things hindering or helping buyers when negotiating a new car deal.
Securing the best price on a new car lies mainly in our position or readiness to commit (that is commit by means of a deposit – ready to purchase). The risks of attempting to address a finished price before you’re in a position to commit to a new car purchase are:
Firstly, that you very likely won’t actually have the best price (explained further down).
And, that you may compromise:
Your credibility. Possibly losing your ability to actually secure the right deal when you are truly in position – the “boy who cried wolf” theory.
Furthermore, this can also compromise your ability to attract excellent and/or favourable service(s) from those you need it from.
So in summary, you wind up wasting your own time and ultimately compromise your ability to achieve the end goal. That is, buy a car for the best price.
Churning through companies (people) attempting to quickly obtain “best price” without being in a position to commit is a colossal waste of your own time. Why? Because even if you did get a salesperson to blurt out a price you liked the sound of, you’ll still need to be in a position to check ALL details and then go ahead and actually secure that price on the exact right new car.
Unless everything is in writing and all the details have been checked, it’s all hearsay. Which means going around in circles wasting your own, and other’s time… until you’re in a position to commit to a specific deal.
So What Does Being In Position Really Mean?
Being in a position to negotiate the best deal on a new car means your personal position (in your own mind) is this:
- You’ve driven the car you intend buying, and you love it.
- You’re 100% sold on that make and model.
- You’re aware of current advertised prices and ‘deals’ and the value that these prices represent. That is, you’ve factored in the fine print.
- You know the full retail price of the car is inclusive of on-road costs (if you don’t know what the full price is, you won’t recognise a discount or know the figure you’re specifically looking to get to).
- You have a good idea of what you can expect to get for the car you are trading in.
How It Goes In Dealer Land
You’ve probably already experienced it. Dealers won’t commit to a genuinely great price (the best) without qualifying whether or not a potential buyer is ready to commit to actually buying.
The dealer’s perspective is: “Why lose profit – and the deal?”
Unless the dealer has a commitment from you to buy (on the basis that the price is right), you’re unlikely to get anything near firm from them as you may have already discovered.
1 of 2 things will likely happen…
1. You’ll get a conservative price that they’ll say will be able to be improved upon when you come back.
Or 2. an unprofessional salesperson may do what is called ‘ghost’ you. That is, give an unrealistically low price so that when you return, and it comes to the crunch, there’s more money to pay. But they got you back, only because they blurred the truth.
Or, it will be “…oh that promotions over now, we’ll have to re-look at it” or “…we’ve sold that particular car”…wearing you out, then walking you up. Not all dealers do this, but some do.
So what’s the answer?
The answer is to be in position (as described above). You want to have your new car research done first. Then tackle the price on the basis you’ve decided exactly what to buy and you’re in a position (here and now) to secure a deal.
If you’d like to completely cancel the frustration and time-wasting, we’d be happy to negotiate the best deal for you, in writing. Just click the link below…