A friend of mine asked me recently for some negotiation tips when buying a second-hand car.
And guess what, basic negotiation principles are as valid for a multi-million deal as for a second-hand car…..shouldn’t be a surprise after all…
- Preparation:Do your research about the model of the car you're interested in, including its market value, online price quotes, etc. This helps you determining your baseline for the negotiation
- Budget:Set your budget before starting negotiations, i.e. how much you're willing to pay for the car…. or in negotiation language : determine your breakpoint
- Resist Pressure:Be wary of high-pressure negotiation tactics, including the use of time pressure to force you taking quick and therefore potentially expensive decisions
- Control your emotions:Be patient and prepared to walk away if the seller is not willing to meet your termsDefinitely do not show how eager you are to buy that specific carKeep in mind that there are always alternativesDo a test drive…or even better have someone else (with less emotional attachment) doing the test drive.? That other person will help you rationalizing your negotiation
- Control the process:Be the first one to make a proposalDon’t get influenced by the typical salesperson talkWatch out for subtle anchoring by the seller such as showing in big numbers his/her sales priceBring all of your priorities (quality check by a third party, guarantees on batteries, full gas tank, cleaning the car, etc.) into the negotiation
- Your first proposal:Start with a lower offer than your budget/breakpoint so you have still room left for further negotiation
- Do not isolate price:Do not agree first on price and then the other conditions. The conditions you finally obtain will influence the final price
- Negotiate in Person:Negotiate in person rather than over the phone or via email. This allows you to assess the seller's reactions and get a better understanding of his/her objectives
- Put in Writing:It is nice to trust people but there is a place and time for that and buying your car is not such a momentMake sure to get everything in writing, including the agreed-upon price, warranties, payment terms, and any promises or conditions
My friend made a good deal because he constantly kept his focus on his priorities and budget….and he is more than happy with his new – albeit second-hand – car.
Am looking forward to receiving from all of you all kinds of funny negotiation stories when you bought your car.
Seasoned ICT procurement professional looking for an exciting challenge to develop innovative sourcing strategies and revolutionise cost savings.
1 年Any yreason why this is restricted to a second-hand car? A brand new car negotiation is virtually the same (with the possible exception of the guarantee part)... or am I missing something?
Consultant | Negotiation & Strategy | M&A | Founder | Ex GB Athlete
1 年My favorite tip for buying a 2nd hand car that works better in some countries than others (works very well here in Australia). Type ‘relocating’, ‘overseas’, into the search bar. All the people silly enough to put they need to sell due to relocation will pop up. I got an Audi A3 convertible for a friend at $15k below the cheapest one online. Time pressure does wonders for the balance of power!