The Art Of Negotiating A Car Purchase

As I transcend away from a lifelong career in the auto industry, I feel compelled to speak to the fears and misconceptions about the purchase process. As I continue to learn personally, there is a lingering impression that the auto dealership is a place that will attempt to take full advantage of its multitude of opportunities to relieve you unfairly of your hard earned cash. You all know the images of the car salesman in the plaid sport coat standing in the showroom looking at you as if your Today's Catch on the dinner menu. I had to laugh the other day as an Internet auto company portrays the most confidant of individuals in all his other walks of life, cowering in his car on the dealership lot at the thought of this process. How is it that college educated, top performers in their industry can become intimidated by the purchase process that requires them to deal with individuals who often were lucky to finish high school? Do you really believe a 1-week training course in sales can prepare these individuals to clean out your bank account? Can someone making over $100k a year yet still unable to hold onto an APARTMENT longer than 6 months really be that sharp? Ofcourse not, its all perception and the exagerated tails these individuals tell at family gatherings that perpetuate that belief Working 12 hour days, 6 days a week car people tend get creative about our successes. To have any longevity in this industry you must. Afterall, this industry requires a thick skin. Often we use the Baseball player analogy of the .300 hitter that goes to the Hall of Fame yet he fails 7 out of 10 times at bat. With the necessity to have a short memory for the failures you will see a consequent enhancement of the successes. Plus an average of 3 opportunities per day leaves a great deal of time for perfecting your success STORIES with your fellow salesman. The most important quality a successful salesman can have is to "Never Accept No for an Answer". In the sales process we teach that you must get the customer accustomed to saying yes!!! everything is structured to encourage the customer say yes and empower the salesperson each step of the way. Much of the heavy work that must be done later, to maximize profit, requires this process for both the customer and the salesperson to create the trusting environment necessary for the closing process to be most successful. Everything done is predicated on Control. He who controls the process, holds the upperhand in the negotiation Many advisors will tell you to disrupt this process, be difficult at every turn, demand price/payment information upfront. This is truly a mistake. You must remember, this is how we make our livelihood and just like you wouldn't want to be disrespected on your job, we don't like it either. Instead, embrace the process and learn all there is the salesman has to offer about the vehicle. Build rapport with your salesperson and most importantly, get to know the manager, other employees, and the dealership. Your not just buying a vehicle, your establishing a relationship you will need to rely upon for an average of 5 years in continuous service. Don't think you can get by with the local garage, as the manufacturer's relationship is with the franchised dealer so you want yours to be the same. Keep light and non-confrontational as it will serve you well in the moment of truth, the negociation. Your confidence will come much like everything else in life,from your preparation. In todays internet age there is NO REASON you should ever fear this process. The manufacturer, dealer, as well as a multitude of buying sites allow you access to all existing cost, rebate, incentive information available in REAL TIME allowing you to effectively build a car, cost it out, deduct incentives and determine a FAIR profit for the dealer. For full confidence you can visit several of your area dealer websites to request quotes and get internet managers to compete prior to walking into the showroom. Your decision should always factor in more than price. As long as prices are relatively equal, its best to go to the dealership closest to you with the best reputation and longevity in the business. Find out who is the biggest community supporter as that individual takes pride in giving back, not taking from. If you have a vehicle to trade, RELAX. The internet, your credit union, or local library can give you the same guidebook values that the dealer uses, but please, be honest with yourself about the condition of your vehicle as this can highly vary. Now that you've done your homework, the process can be enjoyed. Armed with price knowledge you can allow the salesman to follow his steps and present the dealerships offer. Once this is done it is time to go into action. Remember, this is how they make their living so never become upset at the Offer, as by definition it is only a hoped for agreement. The key is nothing ever happens for them or you until an agreement is reached so countered with a slightly aggressive Counter offer, leaving room for both sides to come out a winner. Now is where your openness and friendliness with mgmt and other employees pays off. Its much easier to lower expectations for someone you like than an unpleasant customer. The dealer ascribes to the belief that often "No business is better than bad business" so make sure they like you. If your certain there is a better deal and you've exhausted negociations, don't be afraid to walk out, but do it on good terms and make sure its over $500 or more as its not worth it to you or them to not agree on less. The important objective is all to feel good about the process so if thats not possible, start over somewhere else. Most manufacturers have multiple franchises within a 50 mile radius so you can still get the vehicle you want and have a positive experience...Next up, the Finance process!!!
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About the Author
After 25 years in the automotive industry, the last 11 owning a successful GM dealership, I'm returning to my Entrepreneurial Mgmt Degree training from the Wharton School to explore the Internet Home Based Business Industry