How Dealers Negotiate
Unless your a professional with many years of experience in the field - don't think for one moment your in the know - your angle is covered
how most dealers start negotiations
An experienced succesfull salesperson will gain your trust, the key here is you must realize salesperson is working on a commission from the gross profit 25% - 30% area, the more you pay - the more commission gained...keep that in mind when dealing with a salesperson whom have gained your trust
Here is just one example how the negoationns may unfold, the technique has been around forever
You found the car you really like $ 18.995 and the salesman invites you to his desk, negotiations are about to start, you want to offer $ 17.000 and the salesman writes the amount on his worksheet, gets your credit card and presents offer to the manager on duty whom will most likely send offer back with a very small discount, example $18.495 for you to approve and initial , at this moment in the process reactions from the buyer can branch out in many directions ... its the moment where the pro salesman with years of experience will have answers and suggestions to all objections
Here are some sample reactions from the buyer when the salesman presents the $500. discount on the worksheet
1)... The buyer sits and stares at it for the longest time without a word being spoken...this little game is called whom speaks first loose
2)... The buyer angrily stands up want to leave, the pro salesman just sits there watching the buyer release emotions in complete control knowing you are going nowhere ( why ) where is your credit card ?
3)...The buyer will state OBJECTIONS...I cant afford it - can buy same elsewhere for less - will think about it - i will give you another $$$ and thats it - got to check with my bank - its over my budget - with Insurance added i cant - will let you know tomorrow - let me sleep on it - got another car to look at - i am running late, got to go, I could add another 50 objections , the above mentioned are the most common, lets look at comeback technique's and answers to objections by the salesman
Comeback Technique's Handling Objections
*
Your telling me you cant afford an extra 50 cents a day ( belittle - the buyer )* Its to much car for you - lets look at something less expensive ( belittle - the buyer )
* You need to discuss this deal with ??? - and you will be the principal driver ( belittle - the buyer )
* I know a good deal when i see it - you obviously dont ( belittle - the buyer )
* If you had done your homework - you would not be thinking about a few extra dollars for this car
* This unit will be sold today - you snozze you loose
* There is another appointment on this car - its now or never
* Just arrived - your lucky being here at the right time
* We both knew offer was to low - lets try $$$
* We are $$$ apart - lets split the difference and see if Mgr accepts
* Special interest rate expires today
* Give me something to go back with - how about $$$
* I need this deal for bonus - please - you been here 2 hrs
The 4 Square Worksheet ![]()
When you start negotiating with salesperson and if you note his worksheet has got 4 little squares marked as follows," Your Trade Value" The Purchase Price" Down Payment" and "Monthly Payments"
Some dealers still train their sales staff using this method to close deals for high profits, Imagine yourselv sitting across a table watching a magician doing tricks in front of your very eyes emptying your pockets without you having a clue, thats how this technique works.
Its long and detailed to explain but I will send a link upon request...The short answer is dont play the game, insist you want final price of vehicle nothing else
Sales Managers most Famous Line to Salesman Behind Closed Doors
If negotiations are conducted without a deposit or credit card in hand by dealer and the manager is signing back worksheet with a counter offer for salesperson to get initialed..." dont let customer walk "...simple answer is, we got a deal now, but lets see how much more profit thats left on the table...
customer already has a deal but is un-aware and being asked for another " example " $ 1000. If customer gets up and starts walking, he/she has got a deal... but most buyers dont test the dealership.
The pro salesman will now try on the customer for size using some of the technique's described above, and lets say buyer ok's another $ 500.
Sales Mgr at this point may except already knowing its total gravy being added, or ask the sales person if there is more money left on the table, some strong closer's working on a commission may wants to be send back asking for a split $ 250. more.
The smooth top gun salesman approches you sitting at his desk excited and with a big smile,,,says,,, that was tough I really had to fight and beg on your behalf and for just another $ 250. we got a deal...
How many thousand of times have I witnessed the customer at this point being relived and thank you his new found friend the salesman for his help...
The above is only an example that can happen in hundred of different ways...
Summary
... The dealer will test you - you test the dealer by walking
