How to negotiate car price when paying cash

Negotiation is an art not all of us are masters of, so when it comes to negotiation we get nervous and try to avoid the situation.

So we have decided to write an article on to give you guys some tips on how to carry out negotiation in your favor while going for car shopping for your a new or used car.

The steps of a successful negotiation are: -

Know what you want.
Be calm while walking in.
Starting the negotiation.
Playing the master shot.

Know What you want: -

When you go car shopping you already know a few things about the car which you want. these things can be the class of car, the brand of the car, model of the car, mileage of the car, comfort, performance, type of the car, transmission choice, and even the color options.
So it is suggested that you first choose which model and make of the car you want, then if you know someone who is having that car, ask them what are the pros and cons of the car, the pros you can keep to yourself and the cons you can use as a weapon or reason to bring down the price of the car at the car dealership.
After knowing the pros and cons, on the next stage, you should go a level up, you should call or email some of the car dealers in your area and ask them if they have your desired car model available with them or not, what are the features and if possible get some information about the price as well.
The dealer will insist you come to the dealership and then talk about the car, because the excitement, happiness, and your desire of getting a new car will help them to convince you at their price.

Tip 1: - If you are purchasing a used car, then we would suggest you visit the certified pre-owned vehicle dealers of the brand.

Be calm while walking in: -

Many of us are introverts and get uncomfortable while negotiating the price and want to avoid the negotiation especially the men, many of us men don't even bargain while buying sabjis or vegetables and just agree to the price of the shopkeeper after one or two dead tries.
While walking in keep in mind that you are a consumer and it is your right to be treated well. You should ask for your preferences, and ask for your desired price at which you are willing to make a purchase.
When the salesperson will see you the very first time, he will approach you and will try to make a little chit chat, but then he will ask you "how will you pay" or "will you need to finance the car", don't tell them if you are going to pay the cash or willing to take the finance at first, just simply answer to the question that "I have not thought of it yet and will discuss this after selecting the car".
If you want to exchange your car don not let the salesperson know until the price negotiation is done.
If the salesperson intimidates you or makes you uncomfortable, you can just ask the manager to provide you a different salesperson or you can just walk out of the dealership.

Starting the negotiation: -

While starting the negotiation, remember one thing, never make the first offer, always let the salesperson tell you the price or make the offer.
When the salesperson makes the offer look for a while around the car and ask him, "How much discount will you give me?" rather than "Will I get any discount?"
Once the salesperson puts an offer in front of you, let him know all the cons and the problems with the car like scratches, dull paint, torn tires, and other problems with the dashboard and interior.
All these problems make him lower down the price he is asking for the car, once he put another offer which is less than the earlier one, you play your card and ask him for an even lower price, remember the price you will ask for should be lower than your budget but should be reasonable at the same time.
Remember "Negotiation is a game of patience", once you made an offer to the salesperson don't say anything after it, let him think about the offer and let him break the silence.

Tip 2: - Do not show your excitement to the salesperson, it is possible that you liked the car during the test drive and have even thought of a name for your new car, but keep all these things to yourself and keep a neutral or confusing expression on your face.

Playing the master shot: -

While negotiating, you should slow down the increment of the price, for example, if you have increased 1000 first, then after that, you can increase by 500 and after that by 250.
When you have almost got the deal and close to your final price, ask the salesperson "How much more discount will I get if I pay by cash ?", cash is powerful and it can be the winning round for you in any negotiation.

Tip 3: - If you can't afford the cash then you should get your finance or car loan pre-approved as the car dealer earn a commission on selling the finance and it will be costlier for you.

In case if you want to exchange your vehicle, then also you should inform the salesperson at the closing of the price like "I have changed my mind and want to exchange my current vehicle with this one, how much deductions will I get on this price ?"
If you will do all these things there is a high chance that you will drive your desired car at your desired price back home.

Although remember the most important thing, you are the buyer and you hold the power, so you need to be kind and calm while negotiating and you should also be willing to walk away if you don't get the car within your budget or if you don't like how the dealer is treating you as there are plenty of cars to choose from a number of dealers but not every dealer get plenty of customers.

Tip 4: - You can buy cheaper cars on the last few days at the end of the month, the dealers and salesman have a monthly target and to complete those targets they let go a few cars at less profit margin during the end of the month.

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