What is a "concession" and why is it important when purchasing a car? Concessions are included in almost every big purchase you make; they're a perk that a seller includes within your transaction to make the transaction more appealing and affordable to you. When purchasing a used car, there are a few of these perks that you may want to make it a point to ask for.
Used cars often come with extended warranties to make sure that you're not taking a "lemon" home. But extended warranties can be expensive and they're often included in the cost of the loan, making the loan itself more expensive. Negotiate to have some or all of the cost of the extended warranty taken out of the loan package. Many dealerships will be willing to do this to secure a sale.
Repairs and Servicing
Many buyers don't realize that they can make their car purchase contingent on the repair of the vehicle. Dealerships often have their own automobile specialists on the lot or a mechanics shop that can do their repairs for them cheaply. You may want to ask for a scratch and dent to be repaired, an exterior light to be changed or even new tires to be placed. If you're purchasing a used car, this is a great way to turn an "almost perfect" vehicle into exactly the right one for you.
No Down Payment
Did you know that you don't really need to put a down payment down on a vehicle? Though it's usually requested, most people can negotiate a no down payment loan. A no down payment loan isn't going to save you money overall—you'll pay more in interest—but it will save you cash now. If you're short on liquid funds and purchasing a used car, you may want to save your cash for emergencies. You can always pay down the loan later on when you're in a better financial situation.
Reduced Dealership Fees
Finally, the last area a dealership can usually give a concession in is their own fees. Many used car dealers are already selling their vehicles very close to cost, so they can't negotiate on these much—but if you ask politely and firmly, they may be able to give you a small amount off the total percentage.
Negotiating with a car dealership about price and concessions is to be expected, so don't feel shy about it. If the dealership tells you that they simply can't do it, it's very likely that they really can't. Shopping around for a better deal may give you more bargaining power. For more information, visit http://www.colvinauto.com.