Consumers often cite fear as one of the biggest reasons why they can’t get a good deal on a new car. They know they should negotiate, but for some reason, they never do. If that sounds like you, don’t be ashamed. Aside from not knowing how to negotiate, many car buyers are simply too scared to even attempt it – which means that you’re far from being alone.
So, let’s take a more detailed at some of the fears that may be holding you back from saving money your next car:
Fear #1: Asking for a Lower Price Seems Wrong
Counter-Thought: The Amount You are Asking for is Fair
For whatever reason, people just hate talking about money. It gets even worse when you decide to ask someone to lower their price – just because you said so. But the truth is that when you successfully negotiate a lower price, you’re just getting a fair market value of the car you’re buying. So, as long as you set your price at around three per cent above the dealer cost, then all you are doing is asking for a fair deal. In fact, the average consumer tends to pay a few thousands below the retail price, which means that by settling for the MSRP, you are forcing yourself to pay more than you should.
Fear #2: The Dealer Will Think I’m Too Greedy
Counter-Thought: You are Displaying Your Confidence
When meeting new people, most of us want to make a good impression by appearing generous and understanding. As such, starting off a conversion by saying that you want to pay someone less money may come off as greedy and unnecessary. While this is certainly a valid concern – especially if you’re not doing it properly – it doesn’t have to work that way. In fact, negotiating with a dealer can make you appear stronger and less timid since you are showing them that you have understanding of vehicle prices and the auto industry in general.
You may be setting high expectations for yourself by doing so, but that’s exactly how people grow and become better. According to numerous studies, teachers who raise expectations for their students end up pushing them to perform better. By negotiating, you don’t just make yourself look assertive, but you become a better human being in the process.
Fear #3: I Don’t Know Anything About Cars or the Industry
Counter-Thought: You Don’t Need to Know Everything and You Can Always Learn
Another major holdback when it comes to negotiating is the fear of lacking the necessary knowledge. You may be afraid that you don’t know enough about cars, pricing or even typical business practices.
The first step toward ditching this fear is to arm yourself with as much knowledge as you can. Read up on the cars you are interest in and figure out what matters the most to you – drivability, safety, comfort, looks or all of the above. You don’t need to know everything; only whatever applies to your personal life.
As for pricing, there are plenty of resources you can use to figure out exactly what you are paying for and how to lower that price. Our free dealer cost doesn’t just provide information on all the latest deals and incentives – it also breaks the price of each vehicle. This means that you get to know what the dealer paid for the vehicle, what the average consumer should pay for it, all the additional fees and your monthly payments if you plan to finance the car. Be sure to create a budget to make sure you understand how much you can spend.
Knowledge is power, so learn as much as you can, and we guarantee you that you will feel much more confident.
Fear #4: I Will Fail
Counter-Thought: An Average Consumer Can Save Up to 15 Per Cent by Negotiating
One of the biggest reasons why people don’t negotiate anything at all is the fear of failing. Why even open your mouth, if whatever it is you get in return will probably not even be worth it? In truth, it will be. The average customer can easily lower the price by up to 15 per cent. So, not only are people able to negotiate a better price than you may believe, but the actual reduction can be noticeably significant.
Nobody said that haggling is fun, but if you just stop for a moment and examine what drives your anxieties, you may realize that it’s a try. Knowing how to negotiate isn’t just useful when buying cars, but also when requesting a higher salary, asking someone out on a date or doing just about anything. Learn how to fight your fears and you will become more successful as a result.
Before you go, be sure to check out our latest, but keep in mind that they expire on February 28!
Total Savings: $3,350
Manufacturer Incentive: $1,500
Unhaggle Savings: $1,850
Mandatory Fees (Freight, air tax, etc.): $2,130
Total Price Before Tax: $33,730
Total Savings: $3,713
Manufacturer Incentive: $1,000
Audi Loyalty Rebate: $750
Unhaggle Savings: $1,963
Mandatory Fees (Freight, air tax, etc.): $2,230
Total Price Before Tax: $41,817
The incentives above are for cash purchases only! For more information on financing and leasing incentives, consult the Unhaggle free dealer cost report.