You might think that haggling on the price of a car is something you only do when you're dealing with older, used cars. But the truth is that many car prices are up for negotiation, especially when a dealership labels itself as an offer dealer rather than a no-haggle dealership. An offer dealer is great for those who are car-savvy and not afraid to negotiate. Here are some steps to presenting an offer that will get you the car, while keeping money in your pocket.
The Basics of a Good Offer
A good offer is one that will make the dealership a modest amount of money while being fair to you as well. The dealership gets their car inventory from manufacturers (or previous owners) and then they occur various expenses for trying to sell it. There is the cost of financing the car, since most dealerships buy their cars on a business loan. Then, there's the cost of keeping the lot open and staffing the business. Marketing plays a role, too. A dealer often has a profit margin in mind that they would like to hit in order to consider a car a good sale. For older cars, that may be in the $500-1,000 range, but for newer cars, a few thousand dollars is generally the target.
Research Your Car's Value
If you are buying a clean, used car, it's a good idea to research the car's value online before you make an offer. There are various sites that list the fair market range for the vehicle, depending on what condition it's in. This gives you a range to work from when you're making an offer.
Try to Level With the Dealer
You might be able to get more information about what investment the dealer has in the car. For instance, where did they get the car-- was it from an auto auction or a private party? What repairs did they have to make? How long has the vehicle been on the lot? From these types of questions, you will learn how much energy-- both time and money-- has gone into the car. It helps you know whether you should go high or low within the range of prices you've found when researching the market value of the car.
Make an Offer, Make it Sweet
You know enough now to make your offer. You can make it more attractive by going with a cash payment rather than credit card, since the dealer may be charged a several hundred dollar fee for the bank's percentages fees. It's only a starting point of negotiation, so be a little bold and see where you can go from there.
For more information, contact a business such as iOFFERdealer.