New Car Buying Negotiation Tips

Negotiating price with the dealership is usually what car buyers dread most about the buying process. Car salespeople are notorious for slick, high-pressure negotiating tactics that will catch unprepared buyers off guard. If you think it isn't worth it to go up against the salesperson, think again. On a $20,000 car, the gap between sticker price and dealer invoice ranges from $1,500 to $3,000. In other words, a successful negotiation could save you three grand or more, which is a powerful motivator to bring your negotiation skills up to par. Read on for the new car buying negotiation tips that will give you the upper hand over the salesman.

• The person who names a price first, loses. As soon as you sit down with the salesperson, the first thing he/she will ask you is how much you can afford to pay. Avoid specifying a price first. If you have to, name a price that is very low but not out of the question.
• Start at dealer invoice and negotiate up. Car salespeople will do everything in their power to begin negotiations at the sticker price and negotiate down. They have the upper hand this way. Firmly reject sticker price as the starting point for negotiations; start at dealer invoice instead.
• Less is more. When the salesperson comes back with an unacceptably high offer, respond with a simple "no, you'll have to do better than that" and then be absolutely silent. Don't follow up your rejection with explanations or superfluous words. Everything you say after your refusal only takes the punch out of your words. Make the salesperson squirm by strategically using silence and unsettling eye contact.
• Time is on your side. Dealership salespeople love to create a pressured atmosphere because it rushes buyers into poor decisions. Don't let them rush you. There is no reason to hurry when buying a new car.
• Dress to not impress. Car salespeople size up potential buyers the second they set foot on the lot. If they see someone in designer clothes and expensive jewelry, they'll smell money and be much less likely to bargain. Your goal should be to look as impoverished as is reasonable.
• Don't be afraid of melodrama. If you're presented with a vehicle price that is out of your price range, don't be afraid to express your disapproval in your body language. The key is to convince the salesperson you're honestly appalled by the figure to motivate him to do better. Don't be afraid to shake your head in disbelief, gasp, or exhale loudly. It may seem silly, but stoicism in the face of an overpriced offer won't get you anywhere.
• Make the ultimate statement by walking away. When salespeople just won't budge any further on the price of a new car and you're still not satisfied, it's time to walk away. Chances are, the salesperson will come back with another offer before you can get out the dealership door.