Buying a car is usually
the second largest financial commitment
that an average individual makes
and is usually the second most expensive
item on most people's monthly budget.
This is why it's paramount to make smart
choices and negotiate like a pro before
signing the purchase agreement.
In this video, I'll arm you with tools
and tricks that will allow you to get
the lowest possible price for your new
vehicle
and caution you about the common
pitfalls that most people fall into.
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Now back to buying a new car!
When you walk into a dealership there is
usually a three-step strategy that is
often used to get you to overpay for a car.
Step one - is what I call maxing out affordability
which usually begins with the sales
person asking you what do you want your
monthly payment to be?
Most people answer this question by
giving the salesperson the number that
they can afford to pay based on their
monthly budget.
Armed with this information the
salesperson knows they don't need to
give you the best deal possible.
Instead they just need to offer you a
price that's within your budget.
However, to demonstrate that they're
giving you a good price the salesperson
will often go back and forth,
back and forth, to the manager's office
and paint a picture that they are
bending over backwards to get you the
price that they're quoting.
However, on the inside they know that
they aren't offering you the best
possible price
so they can't afford to give you time to
shop around at other dealerships.
Therefore, step two is what I call
Illusion of scarcity
where the salesperson will create an
impression that the car that you're
interested in
is selling like hotcakes and if you want
it you'll need to act fast before
they're sold out.
The salesperson will often also press
you to hand over your credit card and
driver's license so they can lock in the car
before it's gone.
Once you've handed
those two things over
the next step comes in which is upselling.
Upselling can include things
like window tinting,
scheduled service, rust proofing, etc.
which they will always quote you as only
$5/week or $10/week
again to create an illusion that they're
giving you a deal of a lifetime
even though add-ons is where dealerships
usually make most of their money.
I should mention at this point I'm not
trying to say all sales people at
dealerships are out to get you
as I'm sure there are some individuals
who truly try and do the right thing for
the customer.
However, what I have described is what
I've seen happen and heard from people
in the majority of the cases at
dealerships
and the objective of this video is to
create awareness among the masses
and help them effectively resist these
tactics.
The most effective way that I've figured
out to work around the common tactics
used by dealerships
is to turn the game upside down.
Instead of letting the dealership
maxing out my affordability and creating
an illusion of scarcity
I make the dealerships compete for my
business which drives the price down and
gives me options to choose from.
So how do I do this?
Once I've selected the car that I want
I simply log on to unhaggle.com, specify
the car that I'm interested in,
which is a Honda Accord Touring in my
example,
and I pull out a free price report that
tells me exactly how much the dealer
pays to get the car from the
manufacturer.
I then go on to the manufacturer's
website, which is Honda in my example,
and pull the contact details of 10
dealerships that are closest to me.
I then send them all a very simple email
that's only a couple of sentences.
"Hello, I hope this email finds you well. I
am in the market for a new Honda Accord
Touring and during my research on the car I
pulled the dealer cost report which i've
attached
and i'm looking for a dealer that will
sell it to me at the lowest possible markup.
Let me know what's the best that you can
do for me as I'm hoping to make the
purchase within the next few days.
Look forward to your response."
If you want any add-ons like window tints,
rust proofing, etc.
be sure to mention those in the email as well
and just like that the game is turned
upside down!
Reading that email dealerships know that I've done my research and
I'm getting quotes from multiple
dealerships and know exactly what a good deal is
so the only way they can get my business is if they offer me a price
that is truly exceptional.
Once you've gotten quotes from all the
dealerships you can choose the one which
works best for you and schedule an
appointment to go in and sign the
paperwork.
Armed with this new technique you're all
set to save thousands of dollars on your
next vehicle.
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