At least once in your life you have heard this word called negotiate, but how effectively have you used it. I have had success with this word in several occasions and I will never make a major purchase or accept a new job without using my negotiation skills carefully to benefit me. How can you implement this word into your life you ask? Well its simple do not be shy to stop a conversation to say: Can you do better? These 4 words are the deciding factor for you saving or making a few thousand dollars. The used car you want to get is listed for $8,500 but most sellers jack up the price in preparation of the negotiation tactics that they will have to deal with. The offer you should make is $6,500, granted you might not get this price but maybe both parties will settle on a 7 grand sales price.
I am one of those people who will not settle for paying more than what I am comfortable paying. So sorry to burst you bubble Mr. Salesman by me not accepting your sales pitch wholeheartedly. All of the moneywatch101 readers should be the same way and negotiate till you get tired. Houses, cars, a new job, jewelry, watches, vacations, gym memberships are all examples of things that can be negotiated. Money you will save and money you will earn when you’re facing and confronting both sides of negotiation talks.
Any way you look at it negotiating things like this can pay off in the long run. $$$
Strategies for Car purchases:
-Always email car dealers prior to getting new / used cars with the details of what you’re looking for.
-Have financing established before going to the dealership and if they offer financing ask them why you should go with their terms.
-Go to Truecar.com and printout the MSRP and price most people are paying for your future car.
-Visit only those dealerships who responded to the email with good prices.
-Walk away the first time you go to the dealership if they do not meet your needs and see what happens from there.
-Have a second car option in a competing dealership, print out the details, show it to the sales man at the 1st dealership the next time you meet to discuss business.
-Once the dealership counters with a price for the car but it is still not the price you asked, attempt to get a better rate if you are borrowing through their financing company.
-If they finally will not budge on the price you want, walk away as you will find the car you need at the right price.
A car is a vehicle that can take you from point A to point B and it doesn’t have to be a thing that will break the bank or put you in debt for 7 years. Whatever your preference is used or new, please know that you will be adding about $350-750 on average of new monthly expenses for your precious vehicle. (Car payment, Insurance, Gas, Maintenance) Personally I hate having a car payment, but I understand that they are a necessity for some as getting to work might require having that mode of transportation. Also if you have a 19 year old car then maybe you are the right candidate to get an upgrade. In any event shop smart and see below for a few of my tips that I always think of before making a major car purchase.
A few Tips I live by:
-Never Lease as it is a waste of money
-Always get financing for only 3-4 years (5-7 years is too long)
-Look at 3 year used car prices first and compare that to current model prices
-Do not rush into buying- When you find the perfect car, think about it for a few days
-Always go car shopping with a second car minded person ( Who can give you feedback)
These tactics will help you watch your money.
Pic courtesy of Tesla : Model S
Currently, I'm in the beginning stage of leasing or purchasing a car. Right now, I have a Honda Accord 04, over 214k miles, paid in full. Presently, my car expenses are weekly gas charges. I pay my car insurance every 6 months due to the credit I obtain by paying in full. I prefer full car coverage because of all the benefits I have under the policy.Im contemplating on leasing my next car because I foresee myself driving less during the next 3-5 years. I also have the option to take public transportation everyday. I want to utilize my next car mostly on the weekends when I go on road trips or visit family/friends. Having the option to lease will help me stay in budget with car payments and maintenance (most lease agreements, the dealership is responsible for any problem with the car). I also, want to have the option to trade my car after three years. At this point, I know I'm years away from buying my dream car, and after awhile every vehicle depreciates.
@HD- I would recommend that you find other options instead of leasing. Mostly all financial gurus in the personal finance space are against leasing, Dave Ramsey, Suze Orman, etc. If you forsee driving less in the future then you should be fine keeping the car you have or borrowing a family members car until it completely breaks down. I don't see a benefit for you if you will only drive the car on weekends to lease. Paying 300+ on average a month for 36 months on a car lease and drive it only on weekends is a waste. Think about it, you will mostly likely end up paying over 15K in 3 years just to give a car back to the dealership with no return. If you make a decent down paymnet on a very good certified used car your payments will not be as high as you imagine. See the links below for more info. http://www.freemoneyfinance.com/2007/12/how-to-handle-2.htmlSee this video:http://www.daveramsey.com/articles/article/articleID/drive-free/category/lifeandmoney_automobiles/
@Ranka-Thanks for the comment, if you have a chance look at the video link on the comment above yours from dave ramsey, its a really cool way to drive cars the inexpensive way.
Hi! I agree, leasing a car is a waste of money. No matter how many ways you try to right this wrong it will also end up wrong in my book. 🙂
I didn't really negotiate on my car, which was probably a bad thing – the dealership claimed to be non negotiable, and I got a great price on it.. but I did talk it down about $250 (not much).
@Daisy- Any amount that you can save at a car dealership is a true win win. But next time please print out a Truecar report for you're future car as you want to be fully informed of how much people are currently paying for it. Also negotiate with those dealers that are open to it and avoid those that make false claims.
Good post! Found a lot of new and interesting! Will share the link with others.
Car insurance or guarantee is very much needed for a person. But it depends upon the consumer and the seller if they agree to provide the insurance or not. Insurance sector stability depends on the consumer and the customer of it. There is a particular age to do insurance in your name and also which type of insurance you should do these all are important. Also insurance are of two type short term and long term. So before doing any insurance you should be confirmed first about that. From my own experience insurance should be very particular and should be a profitable one.
Knowledge is your best friend when it comes to buying or lesaing a car. The more research you can do before going to see the salesman the better off you are.