Automotive Addict

Price Negotiation goes back to your Grandparents telling you to never pay sticker! Many like to Negotiate Price and many customers hate this part of buying a car. Would you like some tips from an Auto Insider on Price Negotiation?

Price Negotiation is where a customer wants to get a car for the lowest price possible and the Car Salesman wants to close the deal at the highest price possible. First, we must discuss why a Car Salesman wants to sell a car for the highest price possible. It all comes down to one word, Gross! Gross Profit is the margin between cost and price sold. If you sell a car for $10000 and the cost is $8000 then this means the salesman has a $2000 Gross Profit. Guess What? Gross Profit is how a salesman gets paid. Most dealerships pay 25-30%. 30% of $2000 is $600 dollars. Now if you Price Negotiate a little more, it cuts into the salesman's commission, but gets you a better price. Remember, Profit is not a dirty word so don't get mad at the salesman, that's their job!
Price Negotiation has become one of the easiest things to overcome because of the all powerful Internet. How would you like to know the price before ever stepping foot into a dealership? Get quotes from Yahoo! Autos and know you are getting the best price. Here is how it works. You follow the link, put in your zip, pick your car, put a little contact info, select ALL Dealers, Dealers fight for your business. When I say they fight for your business, you will be amazed at the first offers. Like I say, Price Negotiation has become too easy.

Everyone always Asks, Should I BUY A CAR or LEASE A CAR? This is a very important question when going to the Car Dealership.

You need to look at your past car experiences to determine your future car needs. Some questions to ask yourself about your car.

1. How many miles do I drive my car?
2. What kind of condition do I keep my car in?
3. What do I use my car for?
4. How long do I keep a Car?

This is 4 very important questions when deciding to Lease or Buy a Car. If you drive over 15 or 20 thousand miles a year, I would suggest you BUY YOUR CAR. If you are rough on your car, like scratches, dents, wear inside and out, I would suggest you BUY YOUR CAR. If you use your car for travel and it is your main car, you may want to BUY YOUR CAR. If you keep your car a very short amount of time or a very long time, you may want to BUY YOUR CAR!

But, on the other side, if you drive 15000 miles a year or less, trade every 3 to 4 years, and keep your car in good condtion, you may want to LEASE YOUR CAR.

Look at the last car you traded. Did you have Negative Equity? Did you owe more than it was worth? If your answer is yes, check into leasing. Leasing gives you the opportunity to trade more often without having negative equity. You turn your lease in and pick out another. It is a great way to drive newer cars more often. Lease scares many people because their mothers and fathers said to NEVER LEASE! Why? It works great for many customers. I have customers call me and tell me to get a new vehicle of their liking ready and they will pick it up tomorrow. Easy for the customer and easy for the dealership.

Guess what? There are still some 2006 models on the ground. What does that mean for you? That means there are some GREAT deals to be found. We are in the second month of the year with last years models still on the ground, that means the rebates are hitting the max, and the deals are getting sweet! They have to GO!
Fill out this short form at Yahoo! Autos
to see exactly what you should be paying for the 2006 you found or the 2007 that just arrived on the lot. There are deals on all of them now, but know what to pay before you even go. there are many savvy customers that are making their deals over the phone just because they do not like the games at the dealerships. Get your price at Yahoo! Autos
and call the dealership and make an offer. If the offer is accepted, then go take a closer look to make sure it is right for you. The saleman will not be mad because once you come in, they know you are serious. There is no haggleing once you get there. It just takes the stress out of the deal for all involved. Oh and by the way, if you are in most parts of the country it is very cold out right now, so dealing over the phone is not such a bad idea. Let me know if you use this method and it works for you.

This is a question that I, as a car salesman, get daily. Everyone is sort of confused about which one to buy. The main thing customers are concerned about is getting a good deal.

Let me say this; Consider pricing between the new vehicle you want compared to used car pricing of the same model. I will use the GMC Envoy because this is one that I sell.

A new GMC Envoy with leather interior will cost about $34000 pretty well equipped. Now with rebates and discounts lets say you can buy one for $31000-this is just an example. Include your tax, tag, title fees and your payment will be approx. $550-$600, this is also an approx. figure. This payment will change according to your rate determined by your credit. Now lets say you plan on trading this vehicle in 2 years and you did 60 month financing. At the end of the 2nd year, you probably will still owe about $26000. I am guessing at these figures, but I have been selling for 10 years so probably real close to being accurate.

Now, take this same well equipped GMC Envoy in a used model. You can buy last years model with 18000 miles for approx. $22000 with a payment in the $400 to $450 range. You also plan on trading this one in 2 years. In 2 years you owe approx. $16000-$17000.

Now, when the used car manager appraises these 2 vehicles you will get a better idea of how things work. The used one will have a few more miles because of the miles on it when you purchased it. The extra miles may cost you $1000 dollars. The new one may appraise for $14000 leaving you a negative equity of $12000. The used one may appraise for $13000 leaving you a negative equity of $4000-$5000. Now you can see the value of buying a used car over new. I have had plenty of customers that purchased a new car that are having trouble trading because of the large negative equity whereas the one that purchased the used vehicle can trade because they are in a better position for the bank. Now, if you put money down when you purchased the used one, you are even in better condition.

I am not saying every new car purchase is bad, but you stand a better chance with a good used car. We also do not know exactly how much a car will depreciate in these 2 years, but this is my experience in past years. So, look at a good used car and compare pricing while you are at the lot.