In Step 2, Building Rapport, your potential salesperson bombarded you with personal questions and attempted to charm your pants off. Get ready for more of the same crank yanking in Step 3, Qualifying. Here, your salesperson proceeds to assess you as a customer. This allows him/her to use your likes, dislikes, and your financial situation as bargaining tools. And the more fuel you feed him/her, the less negotiation power you will have. During this phase you can anticipate questions like: What kind of car are you driving now?, Are you trading it in?, Who is this car for?, Do you still owe payments on your trade?, and so on...
To keep the crank yanking to a minimum, here are some ideas to remember:
- Do NOT mention that you have a car for trade until after you have settled on the new car price. Knowing that you want to trade in a vehicle ahead of time can be used as a bargaining chip against you during negotiations. (For example, the sticker price for the car you want to purchase is $21,000. You want to get that price down to $18,000 and receive $5000 for your trade-in. If you tell the salesperson of your trade-in before you negotiate the $18,000, they will start the numbers game and may ask that you reach deeper into your pockets for a down-payment. We will discuss how to combat this in detail in Step 8.) However, if you are in a hurry, it may be best to advise the salesperson of your trade so that they can begin appraising your vehicle right away, but do NOT discuss the trade-in value until you have settled a new car price.
- It is important to give your salesperson information about your likes and dislikes concerning a new vehicle, but what you do not need to admit is personal information that is not relevant to the sale. For example, your salesperson does not need to know your personal budget and what you can or cannot afford. You already know this and you do not want him/her making the decision for you.
- Lastly, do not become friends. It is good to have some rapport with your salesperson, but you are there to negotiate thousands of dollars, not find a new drinking buddy. This is very much a business deal, so treat it like one.
Next up: Vehicle Walk Around