What Type Of Car Buyer Are You?

By: Neil Teasdale

If you're trying to save money while you are negotiating your new car you should negotiate from the dealer's cost up and not from the MSRP down. Keep your cost as close to their cost as possible. You just need to remember that dealer cost is not the same as the factory invoice.

Some dealerships refuse to haggle over the cost of a car. Once you make your opening offer you should never accept anything higher than that, as far as costs go. If the dealership that you go to doesn't haggle, don't sweat it, some other dealership will. Be prepared to shop around and make the deal you want or as close to it as possible. The reason some dealerships refuse to haggle is because they want to add extra fees to the MSRP.

You will need to decide what kind of buyer you are in order to get a negotiating stance. You do not want to set yourself up as a monthly payment buyer either because that is a guaranteed way for you to get a higher payment fee. This almost always raises the monthly cost to way more than you had planned. They will offer to take a little bit off of the MSRP. Then they will ask you what you are looking to pay each month; this is where the extra money comes in.

Cash buyers are generally asked, "Are willing to pay each month?" hoping to pop them for additional or higher payments. Inform them it doesn't matter because you are looking for an even division on the cost of the car, not to argue over the monthly cost. Let them know that you are looking to haggle over the cost of the car, not the monthly payments. This is often used for cash buyers.

If a finance manager tries to get you to report your payment method before you have decided upon purchasing the car, don't get sucked into it. Get the price before working out the details. The method of payment doesn't matter unless you are deciding upon purchasing the car. Finance managers ask so that they can best decide how to screw you over. Those are the facts, there's no nicer way to put it.

Some dealers will offer to give you a better deal if you finance your car through them. I can guarantee that this will not be the case.

Of course the worst thing that you could be an impulse buyer, dealers smell this immediately and make sure you pay for your impatience. An impulse buyer is just another word for "victim." Impulse buyers can often get sucked into the "hot" car of the moment and usually get taken for as much as $10,000. A dealer can see this buyer coming from a mile away.

If a dealer approaches you about the "hot" car tell him that you are not interested because it will not be worth the money next year as the new "hot" car will be out by then. Stick to your plan and the models that you're interested in and have done your homework on.

You don't want to buy a car that is in demand because it is the easiest way for a dealership to mark up the prices. The MSRP always looks low, but it is the extras and monthly payments that will lose you money.

Remember the resale value of the car doesn't change no matter how much money you bought the car for. All cars still depreciate in value at the same rate from the factory invoice.

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