When it comes to buying a car, many people dread the negotiation process. It's important to remember that car dealers are in the business of making money, so they will try to maximize their profits. That's why it's important to be aware of the different prices of a car and to not discuss your budget with the dealer. Instead, focus on getting the best deal possible and don't let your excitement get in the way.
When negotiating with a car salesman, it's important to know the three different prices of a car. The first is the sticker price, which is the price listed on the window of the car. The second is the invoice price, which is what the dealer paid for the car. The third is the out-the-door (OTD) price, which is the final total price of the car including all taxes and fees.
It's best to take the excitement out of the car-buying experience and focus on getting the dealer to take such a low price that they are willing to pay for the car in exchange for getting it off their lot. To do this, you must be an effective negotiator and familiarize yourself with all three prices of a car. When asked about your budget, simply respond by saying probably and don't mention any specific numbers. The dealer may also ask you what you do for a living and where you work in order to determine your ability to pay.
It's natural for them to quote cars in terms of monthly payment, but don't let them leave out the purchase price until documents are signed. If you plan to change your current vehicle, don't tell them until you've agreed on the price of the new car. It's also important to remember that saving enough money to buy a car with cash is difficult, so don't expect any special rewards from dealerships for doing so. Take it from someone who's been there - it's entirely possible to beat car dealerships at their own game.
