Are you a savvy shopper? If so, you’re probably always looking for ways to save money on your purchases, especially when it comes to buying a car.
A smart consumer knows how to haggle. There’s no way around it. This is particularly true when dealing with a used car dealer. In a capitalist economy, haggling is a necessary skill. It’s similar to opening a bank account to save money—you also need to be able to negotiate. While bargaining can be frustrating, especially when it involves cars, it can be highly rewarding if it means saving a significant amount of money.
Dodge dealers often share stories about being invited to lunch by clients, only to find out that the real purpose is to have a quiet place to negotiate. In places like the Middle East and Asia, haggling has been a tradition as long as free trade itself. It’s common to see buyers actively negotiating with experienced sellers in flea markets. Some consumers even boast about “winning” a purchase through successful haggling. If you’re one of these seasoned negotiators, you’ve likely saved a lot just by actively pursuing your desired price.
Still not convinced? Here are some simple tips for successful haggling:
1. **Know the price of the vehicle**. Before entering a used car dealer’s office, be aware of the Manufacturer’s Suggested Retail Price (MSRP) or the market price of your desired car model. Being informed will help you set the terms of your negotiation. The good news is that you can find this information from numerous sources, such as dealer websites or from friends who have experience haggling with used car dealers. Knowing the market price ensures you won’t be taken advantage of.
2. **Fight for your ideal price**. Determine your ideal price by doing the research mentioned above. Once you’ve set your mind on it, stick to your initial price when you enter the dealer’s office. This initial price will serve as the basis for your negotiation.
3. **Thoroughly examine the car**. Trust is key in a consumer-retailer relationship. Don’t hesitate to ask the dealer to let you inspect the car before starting the negotiation. Check for scratches, potential part replacements, paint jobs, small dents, and other issues. Also, inquire about the vehicle’s warranty.
4. **State your initial price bid, considering the car’s defects**. This is where the negotiation gets intense. Start with a price proposal lower than your desired price. Point out any flaws the car has as justification for your lower bid. If the warranty is due to expire soon, use that as leverage. If the dealer doesn’t accept your offer, ask for their best price or compare prices from other used car dealers. If the car seems in decent condition, continue to stress your low bid. As a practical consumer, this is well within your rights.
