Negotiating with a dealer

There are two main tactics for price negotiations. The first is to walk in with your offer, and then walk out. The second is to low-ball them, then build incrementally towards your true offer.

The best way to negotiate is to refuse to negotiate

As long as you’ve done the work leading up to this moment (ie. you know your price, you’ve organised your finance and you know what you want), don’t negotiate. Just tell them what you want, tell them what you’ll pay and give them your number. Then leave.

You have to be polite, but firm. Time your visit well (close to the end of the month, around 4pm on a Sunday might work). Be confident but authentic. Dealers can sense a weak resolve at a distance.

Haggling

You know the price of the car you want. Estimate the figure your dealer is likely to accept. Offer something a little lower than that number. Say, 5% lower. Sometimes, the dealer will say yes. Almost every time, they will smile and say no. This is when you ask for their best price.

What happens next is telling. If the dealer feeds you the sticker price, it’s probably time to walk away. But if they deliver a counter-offer, it’s time to haggle. Be clear (with yourself) on the price you’re driving at.

Raise your offers in small and specific increments, no greater than $500 at a time. After some back and forth, if you’re not getting what you want, say you need to consult the other-half, parent, sibling, mate, etc. and offer to come back in a few days.

Leave your phone number. You might get a call before then.

Things to keep in mind…

• There’s always a better deal. Dealers know that someone, somewhere is going to sell you a car for the price you’re asking. It’s the reason we negotiate – and it’s also the reason you should negotiate with multiple dealers at one time. As with most things in life, getting a bargain is a numbers game. The more offers you have out there, the more likely you are to strike gold.
   
• Walk away. This can’t be emphasised enough. If the dealer won’t come down to your price, walk. Like we said, there’s always a better deal. Don’t lock in to a negotiation when it’s clear from the outset you’re not going to get what you want.