the dealer welcome! so you’ve located the right car for you and your budget and are now ready to...

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The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer can be intimidating but don’t worry –we’ll go over some strategies and talking tips that’ll help you before you walk on the lot. Click to continue

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Page 1: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

The Dealer

Welcome!

So you’ve located the right car for you and your budget and are now

ready to take on the car dealer.

Negotiating with a car dealer can be intimidating but don’t worry –we’ll go over some strategies and talking tips that’ll help you before you walk

on the lot.

Click to continue

Page 2: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

Here’s Joe. He’s had a lot of experience negotiating with car dealers. Why don’t you ask him a couple of questions about

negotiating?

What should I do to prepare for talking to a dealer?

What should I be aware of while talking to a dealer?

Page 3: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

Good question. Negotiating is really all in the preparation.

Here’s what you gotta do:

1. Know what you can afford.Find out your maximum purchase price for

the make and model of car you want (including tax and interest). If you’re

financing through a bank – get a preapproved loan –it makes negotiating

so easy.

2. Shop around Get quotes from different places. You can get

them online, over the phone, or in person. The more info you know the less

they can trick you into a bad deal.

What should I do to prepare for talking to a dealer?

What should I be aware of while talking to a dealer?

Page 4: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

There are a lot of things to think about when talking to a dealer. But here’s 3 main things.

Dealers get paid a certain percentage from selling a car, so they want to get you into

that car as fast as they can and at the highest price they can.

Don’t get bullied into buying a car – walk away if you are not sure what you’re

getting into.

Also, don’t discuss monthly payments right away. If you talk to a dealer about

monthly payments they’ll try to get you to pay a small monthly payment for a

longer term, which is more money in the long run. So keep the focus on the overall

car price.

What should I do to prepare for talking to a dealer?

What should I be aware of while talking to a dealer?

Page 5: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

You know what they say – practice makes perfect. Why don’t you try

talking to a car dealer about buying this car?

Don’t worry – I’ll be right there with you to make sure they don’t give you

a raw deal.

Let’s go!

Honda Civic LXMaximum price: $30,000

Page 6: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

Hey there! I’m Don – so you’re interested in this Civic, I see.

Would you like to have a seat in it?

Dealer’s will try to get you to test drive the car – if you drive it you

might like it and make an emotional purchase, which is bad for your

wallet.

Unless you’re 100% sure you want to buy from here - I wouldn’t do it.

No thanks, Don. Sure thing.

Page 7: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

Well clearly you’re not interested in a test drive.

Let’s talk business then – what is your desired monthly payment?

Remember – talking monthly payments before determining

overall price means you pay more in the end.

I’d like to pay $300 a month I have an overall price in mind but what can you offer?

Page 8: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

That was a great test drive! The car handles extremely well, especially

with a driver like you.

Let’s get down to business then– what is your desired monthly payment?

Remember – talking monthly payments before determining

overall price means you pay more in the end.

I’d like to pay $300 a month I have an overall price in mind but what can you offer?

Page 9: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

$300 is do –able with a down payment of $3,000. And we can give

you a really low interest rate.

Don’t let the dealer tell you how much your down payment or trade in

value should be.

Notice how he mentioned interest rate but not payment term? The

longer the term, the more you end up paying.

This is why you shop around and research – get all the facts and get a

good deal.

I think I’ll keep shopping around.

That doesn’t work with my budget.

Page 10: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

Well, $300 is do –able with a down payment of $3,000. And we can give

you a really low interest rate.

Don’t let the dealer tell you how much your down payment or trade in

value should be.

Notice how he mentioned interest rate but not payment term? The

longer the term, the more you end up paying.

This is why you shop around and research – get all the facts and get a

good deal.

I think I’ll keep shopping around.

That doesn’t work with my budget.

Page 11: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

We’ve got a great rebate offer though – today only –finance with us and

you’ll get $1200 cash back.

Rebate offers and other incentives are great, but don’t let them distract

you from the two most important costs:

Overall cost of the car&

Interest rate

That was a good practice– let’s go.

Page 12: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

You did a great job out there.

When you go out to buy a car for real – be sure to bring your research – what the True Market Value of the

car is along with your target for overall price. This will give you some leverage when negotiating down the

price.

See you later!

Page 13: The Dealer Welcome! So you’ve located the right car for you and your budget and are now ready to take on the car dealer. Negotiating with a car dealer

To find out more about any of the topics discussed in this module - contact your base’s Personal Financial

Management Specialists.

Thank you for learning with us!You may now exit.