Negotiating with a car salesperson is tough. Don’t make it more difficult by making these common car-buying mistakes:
Saying the wrong things – Saying “I need a car…” or “I love this car…” will make the salesperson think that you are desperate for the car you’re looking at. It may become more difficult for you to bargain down to the price you want.
In addition, some car buyers make the mistake of saying how much they can afford each month. When that happens, the salesperson will look for ways to satisfy your “monthly requirement” while still maximizing their profits. For instance, they can extend the loan term to minimize your monthly payments. Unfortunately, this will increase your interest costs. Chances are, you end up paying more for the car. Sensible car negotiating tips will tell you never to say how much you can afford. What you should be negotiating for is the total cost of the car.
Failing to research – You can’t negotiate if you haven’t done your research. Be sure that you are aware of the true market value of your car. This means looking at the average price paid by consumers, not the MSRP.
Assume that they need to use the dealer’s financing – Remember that you don’t need to rely on the dealer’s financing. Feel free to arrange your own financing at your own bank so you can choose the shortest car-loan term available to you. That way, you can save on interest costs.
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