New Car Price Negotiation
A professional automobile salesperson knows new car price negotiations include more than just the final sales price. Because all dealers pay the same for like-equipped vehicles your competitors do not have a price advantage over you. The advantage they may have is how they train their salespeople, inventory levels, advertising strategies, etc. but IT IS NOT PRICE.
Is the new car price important to your customers? Certainly, just like price is important to you when you make a purchase. Don't ever forget that your customers are just like you. They want to be assured they are getting the best price before they make a decision to buy from you. What price to pay is only of the 5 Buying Decisions.
Your attitude about selling price creates the conflict. Many salespeople shy away from the shopper who comes to the dealership armed with pricing figures obtained online.
My question to you is why?
You are talking to a customer who has spent time preparing themselves to buy at the right price. They have already made the decision to buy. Now it is simply a matter of showing them the right vehicle and negotiating the rest of the terms.
If you and I buy a product for the same selling price but my payments are higher, for the same repayment term, who paid more. I did. If you and I buy a product and the payments are the same but I have to pay longer who paid more? I did. I am mentioning this because I began this page by telling you new car price negotiations include more than just the figure that appears as the "selling price."
Learn to think in terms of the total cost and you will find that price becomes much less of an issue. Think in terms of helping the customer make the right buying decision based on business principle. If the "selling price" paid is $200.00 less but I pay $1,000.00 more in finance charges I actually paid $800.00 more, didn't I? Show your customers that you may not be able to match some unrealistic figure thrown out as "price" as they were leaving your competition by helping them see that selling price is just a part of what they pay.
The reason people make offers to you that are far below what you can actually sell the vehicle for is because they are afraid they will pay too much. They have been bombarded with unrealistic buying figures and mis-leading price ads. The automobile industry has caused some of it's own grief, do not become a part of it. Your customers want information, they want it up front and if you deliver it to them at agreeable terms they will buy.
When you are in a price negotiation remember that if you give it up in hunks, they expect it in hunks. In other words, offering a discount should be done in small increments. If you offer discounts several hundred dollars lower than your previous offer they will counter with offers in the same vein.
Don't make price the only issue. Present your product with knowledge and enthusiasm. Follow the Road to a Sale. It builds product value, helps you overcome objections and helps mitigate the price issue.
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The new car price is only one part of the terms
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