Most car buyers approach negotiating car price all wrong. In this video I speak from my experience as a former Mercedes-Benz car salesman. I will teach you how to best negotiate used car price at the dealership.
Successful car negotiation is all in the preparation. The #1 factor that drives up used car price is scarcity. The responsibility of the buyer is to turn the table on the dealer by having justifiable alternatives.
The preparation phase is broken up into 3 steps:
1. Know the Lot Time
How long has a used car been on the dealer’s lot? You need to know before you visit. You’re not going to get a good deal on cars that have only been on the lot a week. Dealers will be thinking about wholesaling their cars once they’ve been sitting on the lot for 90+ days.
2. Know Comparables
What comparable used cars are on the market within 200 miles? This will give you a realistic expectation about price. You’ll be able to use these alternatives against the dealer in the negotiation phase.
3. Time Your Purchase
When is the best time to buy a car? January and February are the slowest months at car dealerships. Dealers are more likely to give you a deal when they haven’t hit their unit goals for the month. Your best time to buy is at the end of the month, on the slowest days (Monday and Tuesday), in the slowest months (January and February).
The last 2 steps are to execute your preparation.
4. Arrive with a Stated Purpose
Anytime you visit a car dealership make sure the salesperson know this is the first stop on your list and you’re ready to buy today. You’re on your way to see your list of justifiable alternatives. And you stopped in to this dealership first because they’re either the closest stop on the list or the furthest. This helps strengthen your buying position by demonstrating your alternatives.
5. Cite Justifiable Alternatives
At the negotiating table its time to tell the salesperson that you like what you just test drove but not enough to continue on your way down the rest of your list. When they offer alternatives on their lot, politely decline, reiterate that you’re probably going to buy today, but not their car. Then offer that you’re willing to listen to an offer you can’t refuse.