Skip to content

How To Negotiate Buying a Car

Car Salesmen. The epitome of fast talking, deal-making, stress inducing negotiators.  If you’re like me, just the thought of walking through a car lot and being hounded by 3 salesmen gives you an eyetwitch.  In a recent poll, people were asked their least favorite place to visit.  A car dealership was 3rd, right below the dentist and lawyer’s office.

In the last 20 years, things have changed.  Before, there were fewer vehicles than customers.  This gave the dealerships tremendous power.  It was all about supply and demand.  However, with advances in manufacturing technology, there are now more cars than customers.  This gives you the power.  Add onto that the current economic crisis means the dealerships are starved for business.   Below are some tips to being a smart buyer and walking away with a deal you can be proud of.

  1. Know your ceiling.  If you’ve done your research, you know what the car you want is going for.  You have to know the max amount you are willing to spend.  Even if its $1000’s below the sticker price.
  2. Be willing to walk away.  With supply higher than demand, you can always find another car.  Be willing to walk if the dealership won’t give you the price you want.  A lot of the time, the salesman won’t let you leave and will agree to your price.
  3. Secure financing elsewhere.  The salesman gets a commission if they get you to finance through their dealership.  And it’s almost always a higher interest rate than you could secure at a bank or credit union.  It’s smart to get preapproved prior to walking into the dealership. And you can use it as leverage when negotiating a price.  Telling them that you are only approved for ‘this’ amount gives you more ammunition.
  4. Don’t trade your car in.  One of the most common salesman gimmicks is to raise the ‘wholesale’ trade in price of your car, leading you to believe you’re getting a great deal.  However, they make up for it by tacking on ‘extra’ options at a high price or raising the interest rate if you are financing through them.  If you decide to trade your car in, check the Kelley Blue Book price for it and ask the trade in to be a separate transaction.  Insist on two invoices, one for the trade in and one for the purchase so you can see exactly what you’re getting for your old car and paying for the new one.
  5. Take emotion out of the equation.  Even if you have the nicest salesman on the planet, they are only thinking of profit.  It’s their job.  You should think the same.  Don’t feel bad about getting a deal.  And don’t let their charming nature break down your resolve.  This is a lot of money you are investing and it’s a business transaction.  Period.
  6. Give yourself plenty of time.  If you have it in your head that you need to buy right this minute, you’re more likely to pay a higher price.  Go into it allowing at least a week to make a decision.  Get several quotes from dealerships.

While purchasing a vehicle can be a hassle, the end result is well worth the work.   Going into it with a confident and calm attitude will ensure success.  “Two roads diverged in a wood, and I–I took the one less traveled by, and that has made all the difference.” Robert Frost

Posted in Tactics.

No comments

By lisa – November 23, 2011

Negotiating with……the ‘Terrible 4′s’

Phew.  You made it through the toddler years.  Although there were many tantrums, sticky situations, clogged toilets, chunks of hair missing and strange singing and dancing creatures, there were also many moments of joy and laughter and discovery.  But now you’re on to better horizons!  Your little one is growing up quick. They have reached the ripe old age of 4.  Gone are the days of embarrassing outbursts at the grocery store, coloring on newly painted walls and tirelessly potty training.  Things should be smooth sail– wait. Hold on.  Who is this kid?

Nobody talks about it.  I’m not sure why.  Maybe it’d scare too many people off from having kids.  Regardless, you’re neck deep in the 4’s.  It’s sound a bit ridiculous at first.  I mean how much grief could a pint size kid give you?  You quickly find out.  At the age of 4, children have developed enough speech skills to communicate what they want, and don’t want.

Suddenly your child, who used cry when they were unhappy and could be consoled with a hug or a time out, can talk back.  Those looks you’ve mastered are now falling onto blind eyes.  They are defiant, testing and smart! Books say that children at this age should be testing boundaries.  And boy they aren’t just a whistling Dixie.

So how do you get through this next stage and keep your sanity? While I don’t know if that’s entirely possible, you can utilize your child’s emerging sense of self and entitlement and apply basic negotiation techniques.

Stay Calm.  I know everyone says it.  And it’s one of the hardest things to do.  Mastering it in any situation is a feat, let alone parenting.  If you can picture your anger and frustration as a physical material that you are throwing at your child, it will change the way you see it.  Trust me.  And kids do feel your anger.

Ask Them.  Kids are pretty savvy these days, even 4 year old ones.  Next time, in an adult voice, ask them what’s wrong.  And tell them to use their words.  You’ll be surprised at what they say.

Chill Out Technique.  In much the same way you need a ‘happy place’ to go to when you’re upset, kids  need one too.  Let them know it’s ok to feel that way and there’s a better way to deal with it.

Follow Through.  One of the hardest parts to punishing your child is actually following through with it.  But how are they to learn from their mistakes if there aren’t repercussions? If they know they’ll go into time out when they talk back, they’ll think twice about it.

Tag Team.  Sometimes, you’re just at your wits end and you need to give yourself a break.  And that’s understandable.  It’s paramount that you have someone who can come in and take over when you’ve run out of rope.  It gives you time to defuse and come back refreshed.  Whether it’s your spouse, partner, mother or grandmother, it’s important to have help.

Reward System.  I swear by this.  It helped me through a very tumultuous year with my 4 year old.  Make up a calendar and tape it to their bedroom door.  Every day that they behave (with minimal tantrums) they get a sticker on that day.  At the end of the week, if they have at least 5 stickers, they get a treat.  If at the end of the month they have at least 20 stickers, they get a special ‘fun day’ with you.  This way, they have visual motivation to behave.

Strike a Deal.  Nobody’s perfect, including you.  And when your child is acting up a lot and constantly getting scolded, it can wear on them too.  Try to make a deal with them.  For example: “Alex, if you will try your best not to throw a fit today, I will try my best to help you with what you need.”  Make it a partnership between the two of you.

There is no exact science to raising kids.  And every one is different.  But if you can use your child’s development as a tool to bargain with them, and in turn teaching them important life lessons, you will have a much better relationship.  Not to mention a happier nervous system.

Posted in Best Of, Personal.

No comments

By lisa – November 17, 2011

Bargaining in Foreign Lands

Your bags are packed, the cat’s taken care of and you’ve been watching what you eat.  It’s time to bust out that bikini (or speedo) and relax in one of the most traveled-to destinations; Mexico.    It’s reported that Mexico brings in $13.3 billion in U.S. dollar travel spending per year.  And with beautiful ruins, warm waters, and margaritas it’s easy to see why.

For newbies and seasoned travelers alike, discovering Mexico is an exhilarating experience.  And one of the most interesting aspects is that almost everything is negotiable.  For some people this is exciting.  The thrill of bargaining and knowing that you can get that necklace for cheaper is just plain fun.  For others, it can be daunting.  Especially since in the U.S. items sold at a market or store are generally not negotiable.  But before you start pounding antacids, check out these basic tips on how to get what you want for the price you want.  And enjoy doing it.

Bring Cash

If you have a limited amount of money to spend, you will be more apt to stick to your guns on prices.  With a credit card, well sky’s the limit and it’s easier to give in to a higher price.

Ditch The Bling

Don’t wear expensive jewelry or anything that gives the shop owners the idea that you have a lot of money.  It weakens your bargaining power.

Sidewalk Welcomers

Start by finding a shop that has a friendly worker out front trying to drive traffic inside.  They are more likely to engage in bargaining. Shops with closed doors generally have a more fixed price.

Play Coy

Never let the sales person know how much you want something.  If you show mild interest, they’re more likely to lower the price to entice you.

Shop Around

There is almost always the exact or very similar item at another nearby shop.  It pays to investigate and get a good idea of what others are asking.

Low Ball It

Have your price in mind, and give yourself plenty of negotiating room.  Start with an offer well below your actual ideal price.  You need wiggle room.  They do too and that’s why the marked price is generally quite a bit higher than they’d actually take.

Don’t Be Afraid to Walk Away

A lot of times, if you decline and go to leave after negotiating, the salesperson will follow you out to keep bargaining.  And they usually will be offering a lower price.

If All Else Fails, Call In A Friend

If all this feels like too much pressure, have your companion do it for you.  Tell them the price you want and offer them a margarita if they can get it for you.

Negotiating in Mexico can take some work.  But the payoff is well worth it when you come home with goodies and trinkets that you purchased for a steal of a price.  Out with the antacids and in with the guacamole!

Posted in Personal.

No comments

By lisa – November 14, 2011

The Art Of Negotiating With….Yourself?

You read that right.  Negotiating with yourself.  Also called ‘rationalizing’, ‘inner dialogue’ or ‘mental bargaining’.  You may not realize it but we all do it, all the time.  It can be as simple as telling yourself that if you eat that piece of chocolate cake, you’ll hit the gym after work.

Usually, you negotiate with yourself to feel better about indulging in something you know is, well, indulgent.  It’s a way to rationalize your choices.  But how often do you keep up your end of the bargain? It can be easy, after you’ve eaten the cake, to make excuses.  “Well, I worked late so I guessI don’t haveto go to the gym”.  If you can’t hold true to yourself, how can you negotiate with others?

Laying the foundation for successful negotiating starts with you.  These steps can help you hurdle over roadblocks with yourself and out in the world.

  1. Set attainable goals.  You wouldn’t walk into a car dealership with $100 and start negotiating a Lamborghini.   As such, promising to go to the gym to burn off the cake calories, when you don’t have a gym membership, is just unreasonable.  Taking the stairs all day instead of the elevator, is a much more attainable goal and
    sure to be successful.
  2. Ask yourself: Why? Why are you negotiating with yourself?  When you make an offer on a home, you know that there are comparable houses that are cheaper so the ‘Why’ becomes obvious and therefore can give you conviction while negotiating. The end result becomes worth it.   The same can be applied to you.  If the chocolate cake poses a threat to those 5 pounds you’re trying to lose, then you have a valid reason to bargain with yourself.  The ‘Why’ then becomes clear and in moments of wavering, you can remind yourself that you’re doing it for you.
  3. Honesty.  In much the same way that you’d be weary of hiring a shady contractor, you have to be honest with yourself.  You wouldn’t negotiate with a contractor for a new roof if they had a reputation of skipping town before finishing their work.  And you shouldn’t go into negotiations with yourself unless you fully intend to keep your word.  In the end, it’s you who’s cheated.
  4. Be willing to compromise.  You want a deal and they want a deal.  It’s the most basic principal behind negotiating.  And it can be applied to ‘mental bargaining’.  You want the cake and you want to lose weight.  You can’t have both entirely without being willing to compromise. Start with, “I’ll eat this slice and run the track after work.”  Then be honest with yourself.  “Ok, it’s raining out.  How about I eat half this slice of cake and take the stairs instead of the elevator.”

Negotiating can be a nerve racking ordeal.  Putting into practice good techniques while negotiating with yourself, is a great way to get your feet wet and ensure future success.  After all, you are your own fiercest competitor.

Posted in Best Of.

No comments

By lisa – November 10, 2011

My Family vs. Your Family: Thanksgiving.

Your family loves you and they don’t see you enough. (Especially Uncle Bob and Aunt Genie who see you once a year when they come up for Thanksgiving.)  And maybe it has a little bit to do with your famous pecan pie or homemade stuffing with walnuts and bacon, but they count on you to come.  Thanksgiving is a great time to reconnect with family and stuff yourself to the max.  Problem?  Your significant other has a family too.  Suddenly, it becomes a battle of who’s is more important.  Or, and let’s be honest, who’s family will be the least hurt if you don’t make it this year.

Negotiating family holidays is a daunting task.  You can find yourself arguing with your spouse over ridiculous things, such as “we see your family at least once a month” and “you’re one of 5 kids. They have plenty of people coming. They won’t miss us.” Usually one of you gives in, leaving you in a bad mood when you should really be enjoying yourself and giving thanks.

While there is no sure fire way to make sure feelings stay cheery and rosy, there are some tips to making the whole thing go smoother.

  1. Trade off every year.  This year, you see your family.  Next year, you go to theirs.  This is the simplest and most fair way to split it up.
  2. Split the day up.  Go to his family’s house for dinner and head out to yours for dessert.  This works especially well if your family eats early.  But it can be a bit stressful trying to break away or if they live far apart.
  3. Have a ‘2nd’ Thanksgiving with the family you didn’t see the following day.  It might be a dose of serious turkey coma, but at least you’d get to see both families this year.
  4. Assign holidays. “Ok, we’ll go to your parents for Thanksgiving but we’ll go to mine for Christmas day.”  You can kill two birds with one stone, so to speak!
  5. Or- and this is my personal favorite- you have Thanksgiving at your house and invite both families.  Whoever makes it, great!  And you don’t have to feel guilty.

Make sure the indigestion you’re feeling is from too much cranberry sauce and not anxiety over the holidays.  Your significant other (and stomach) will thank you!

 

 

Posted in Personal.

No comments

By lisa – November 7, 2011