Negotiating: The Fun Begins

Your sales person will return now with a worksheet and start scratching some numbers on it like the MSRP (list price), Trade-In (the lower amount I mentioned), down payment and then calculate a monthly payment. The sales person will attempt to have you focus on the monthly payment and wait for your reaction to that payment. (The payment they came up with is loosley calculated on list price for the new car, low price for trade-in, partial amount of the down payment and a so-so to poor credit interest rate. They are trying to sell you a payment. Will you bite? If you say that the payment is too high....YOU LOOSE. You lost your focus. Remember all that research......you already know your payment, you figured it out in the Financing Section......4 Square Negotiation

Ok, let's get back on track...you say lets get back to the pricce of the new car. You open your folder and say the invoice on that car is $________. I am willing to pay invoice less $__________ (which is half of holdback). You then say that your Trade-In is worth $__________ based on your printed research. Now wait for their reaction.

If you brought in your FREE quotes that I recommeded from Yahoo! Autos you can bypass all the price negotiations and save an hour or more. Plus you will already know that you are getting a great price.

They will try to get you to come up over invoice by talking about the car being scarce and a popular model...etc.....and accept a lower amount for your trade-in by pointing out issues with your trade, even though you already accounted for them.

Time to Stick To Your Guns
You say I will pay $___________ for the new car and accept $__________ for the trade-in and I will drive it home NOW!

They will try to get you to come up in price and lower on your trade. STICK TO YOUR NUMBERS!

If you have stuck to your numbers long enough they will probably write out your offer and ask to to initial it or sign it so they can present it to the Sales Manager. Go Ahead and make the commitment.
Shortly the Sales Manager or a second Sales Person will return. If they do not introduce themself as the Sales Manager, ask for the Sales Manager.  When the Sales Manager sits down they will also try to raise your up from your new car offer and lower on your trade-in number. They may ask are you financing. You answer is that you have financing from your bank or credit union at ___% but if they can beat the rate you would finance with them. (Financing Section)

The Sales Manager will finally come to a number that might not be exactly what you asked for, it may be invoice or a little higher, unless it is a Hot Car, and the trade number may be slightly lower. At this point you need to decide.

You decide if those numbers seem fair to you, are they close (very close) to your offer? Would you feel good about those numbers? Can you feel good about the deal?  If not thank them and ask for your trade-in keys. At this point they make come a little closer to your numbers than have you leave. If the numbers are OK reach and Shake Hands.....You just bought a car.

Next Step: Paperwork and Financing
 
Inside The Mind of Your Sales Person
Chapter 1