The Art of Negotiation

The Internet, historically speaking, has been around for fraction of a second. In contrast, gasoline powered cars have been around for more than one hundred years. For most of that time, it has been customary to “haggle” or horse trade for transportation, as well as, many other products. Here are our tips on the art of negotiation.

The reason for the negotiation is two-fold. First, to ensure that you are not paying more than your neighbor or other random consumer for the same product. Second, in many cultures, it has been historically common practice to negotiate.

When we shop at department or grocery stores we wait for sale prices or use discount coupons to pay less than the posted price. The Internet has ushered in new platforms for merchandising and purchasing products. Cars and houses are among the few products that can’t be squeezed into a UPS truck. They take salespeople, brokers, financial institutions, title clerks and a myriad of others to complete a transaction.

The amount of information available online has led to greater transparency and increased competition for car buyers and consumers benefit in a number of ways.

1. It drives prices down
2. It allows you to compare similar or dissimilar models side-by-side by any feature including and especially price
3. It gives you confidence that you are getting a good value for your money
4. It gives you security in the knowledge that you are not getting taken advantage of.
5. It gives you choice

In other words, technology and market forces are now doing the negotiating and price comparing for you. To illustrate the point; when you see a product on a site like Amazon, you don’t call Amazon to see if they will sell it for less than the posted price. You may check Best Buy to compare. Usually both of those companies price check each other on a regular basis and price match so that you get the best, lowest, most competitive price possible.

With sources like Autotrader, TRUECar, and KBB to name a few, as well as the thousands of individual dealer websites, the same truth applies. Car dealers routinely scout these third party sites and their competition to make certain their prices are competitive. In fact, the advertised price on a vehicle is most often a dealer’s lowest, most competitive price. It would be illogical for a car dealer to advertise a higher price than the competition. Naturally, the consumer is going to be drawn to the lower price.

Once you have identified a price point that works for you, you need to also compare a dealership’s service and reputation. Having a good ownership experience is just as important as getting the right price. It actually, may be more important as you will likely interact with the dealer for as long as you own your car.

If you have done your research before you walk into a car dealership, you may find that you can skip the hassle of negotiation and know that you have already found your deal!