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Negotiation of money can be an uncomfortable situation for anyone, regardless if it is for a house, a job salary, or a car. You don’t want to be judged for throwing out a low price but you don’t want to suggest a high dollar figure in fear of getting ripped off. Buying a new or used car is an investment and can be intimidating in itself. On top of that, car salesmen often have the stigma of being pushy. So what are some things you can keep in mind when negotiating with a car dealership?

1. First, let’s debunk some myths. Not all car salesmen are pushy. Not all car salesmen are dishonest. And not all car salesmen dislike working with people. Professionals, such as those at Paul Sherry Chrysler-Jeep-Dodge-RAM, are honest people who want to find you your perfect car, regardless of the price tag. The association of car salesmen with the word “pushy” is quickly becoming a thing of the past.
2. Congratulations! You have decided which car you want to purchase. But first, do your research. Understand what standard fees are going to be involved with the car purchase and what those fees mean. You don’t want to be sitting down to buy the car only to get confused and second guess yourself.
3. Shop at several different car dealerships in Dayton. This way you know if a car is way overpriced at one versus another. Also, it can help you when negotiating. “But the dealership down the street is selling this car for $3,000 less. I’ll just go there.” Showing you have done your research can significantly help the negotiation process.
4. Consider timing in the month, or how long the car has been on the lot. If it is a car that has been there for a while, a seller may be more inclined to get it off the lot. It may give you some added leverage. The CarFax report will often tell you how long the car has been at a given dealership.
5. Sometimes it may help to bring a friend or significant other. They can serve as the person who helps you stick to your plan. If you don’t want to pay over a certain amount, but also are someone who may crumble under pressure, this might be a great solution.
6. Now time for the money conversation. First, have the dealer tell you what the selling price is. It can often be different than the sticker price. Have the dealer state the first price. If you let the dealer name the first dollar figure, you save yourself from starting too high.
7. When throwing your first offer, after the dealer state the price, name your reasons as to why you are giving that figure. Give your firm number, and then stay silent. You want to let the seller to accept your offer or counter with an attractive figure. Don’t second guess yourself and risk offering a higher number before they respond. Some worry about being impolite or that their offer was too low, so they fill the silence and dribble on. “Based on our research and what I have seen at other dealerships, and that the car has more miles that I would prefer, I am prepared to offer $22,500.”
8. Although you may just want to get the negotiation over with because it can be uncomfortable, do not accept the first seller counteroffer. Counter back with a smaller increment. Perhaps increase your initial offer by $500 or $750. Provide reasons and encouragement. “Based on our budget I would be willing to pay $23,000 and could pay that now if you are willing.”
9. Do not worry about the seller or dealer; keep your concern on your own budget.
10. Stick to overall price, not monthly payments. The financing will come later, so don’t touch on that when negotiating the purchase.
11. If you are getting close to a price that you want to be at, but the dealership won’t come down anymore, try to get more for your money. If there is that $1,000 gap between your price and what the seller wants, ask for them to throw in an upgraded warranty or new floor mats, etc? However, if you chose to do this make sure the things you ask for are things that you actually want or need.