If you are one of the Lucky few to get a job in this economy and the HR rep. calls to inform you that you will start with a salary of 34K. Depending on how the conversation is going, you can sneak in the 4 famous words that negotiators love to throw around: Can you do better or Can that be negotiated?
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