| Having car buyers at the dealership, at the negotiating | | | | selling for at local dealerships, and you know how |
| table, excited about a vehicle and ready to make a | | | | much your trade is probably worth, and you know |
| purchase is the only time the dealership has a chance | | | | your exact payoff, you can determine what your |
| to really make some money. The best way they can | | | | target trade difference and amount financed will be. |
| do this is by making consumers focus on payments. | | | | 4) Try to get your trade evaluated first. Many |
| This is where the four-square worksheet and other | | | | dealerships won't do it, plus it won't help you in |
| tools like it come into play. Usually the four squares | | | | negotiating (despite other articles that claim the |
| show their price, the value of the trade, the cash down, | | | | contrary), but it will tell you how much vehicle you can |
| and the payment. Here is a normal method of | | | | consider at that car lot. Do not make the mistake of |
| presenting the deal: | | | | trying to find the dealership that offers the most for |
| The car salesperson walks in and puts the sheet in | | | | your trade up front. If your car is worth $5,000, some |
| front of you, facing you. They point to each square as | | | | dealerships will say it is worth $4,000, while others may |
| they go over the numbers. | | | | say it's worth $8,000. In reality, they are all giving |
| "This is for ours... this is yours... with $3,000 down, your | | | | approximately the same, but you'll find that the |
| monthly payments would be $789 per month. Initial | | | | dealership giving $8,000 is probably $3k-$4k higher on |
| here and I'll go get it cleaned up!" | | | | the price of their vehicles. Again, focus on trade |
| Whoa, whoa, whoa! $789 per month? $3,000 down? | | | | difference. |
| What happened to zero down and $249 a month like | | | | 5) As rough as it is to go to multiple car dealers, it is a |
| the advertisement said? | | | | good idea. Gather trade differences on similar vehicles, |
| And just like that, they have you. The last two | | | | then go back to the dealership with the best one. Then |
| numbers were so outrageous and spoken out loud. | | | | ask them to make it even better. They may or they |
| The first two we skimmed over and never spoken. | | | | may not, but it never hurts to ask. |
| You're ready to leave, but before you can, the | | | | 6) Talk payments with the finance manager only, and |
| salesperson will identify the objection, which will usually | | | | only after the trade difference is acceptable. If you |
| be the payment and money down, and try to fix it. | | | | know that a $15,000 loan will be around $310 per |
| After a few rounds of back and forth, they relent to | | | | month, there is no reason to argue it with a |
| $500 down and $279 per month, magically making the | | | | salesperson who comes with numbers showing the |
| numbers acceptable for you. Still, at no time did they | | | | $15,000 loan at $370 per month. They want you to |
| adjust the top numbers. They simply kept the | | | | agree to leave a "cushion" for finance to sell you a |
| customer focused on payment and cash down. They | | | | warranty, bump your rate, or sell some other products. |
| won. | | | | Again, if the trade difference is acceptable, worry |
| The best way to prepare for car shopping and get the | | | | about the rest of the numbers with the finance |
| best deal is to focus on trade difference - the | | | | manager. |
| difference between their car and your car. You can | | | | 7) Be strong. Focus on the prize. Do not let anything or |
| also consider "total financed amount", which is trade | | | | anyone distract you from the important number: trade |
| difference plus your trade-in's payoff. | | | | difference. That is the only number you need to |
| Follow these steps and you'll avoid getting redirected in | | | | negotiate on the floor. Bring a copy of this article if you |
| the direction the dealership wants you to look: | | | | must, but make sure they know you know what they |
| 1) Determine your likely interest rate. Better yet, get | | | | know. You know? |
| pre-approved at your bank, credit union, or other | | | | If you can find an honest car dealer that works strictly |
| lending institution. The dealership will probably be able to | | | | with trade difference, you'll have a much more |
| get a better rate, but knowing what the current rates | | | | enjoyable experience. |
| are for your credit situation and for the kind of vehicles | | | | It is an extremely competitive market, more so than |
| you are considering will help dramatically. | | | | ever before. The internet has made it increasingly |
| 2) Determine your monthly budget, desired down | | | | difficult for car dealerships to make money. |
| payment (if any), and desired term. Find a loan | | | | Consumers have access to online inventories and |
| calculator and plug in numbers until you know match | | | | classified sites like San Diego Used Cars. |
| your budget. If you know going in that a total finance | | | | They can get ideas of their trade values at Black |
| amount of $15,000 with zero down will be $311 per | | | | Book Online. |
| month for 60 months at 8.9%, you will be able to find | | | | They can check loan payment calculators, find |
| the car that fits your budget. | | | | affordable warranties, and get a used car's vehicle |
| 3) Get all the numbers you need ahead of time. If you | | | | history report. For all of this, we can thank the Internet. |
| know how much vehicles you are considering are | | | | I hope it helps. |