Car Salesman Confidential: Bad Negotiating Strategies

In my last two articles, which you can find here and here, I talked about some good negotiating strategies.  But what are some to avoid?  Here are three not-so-clever negotiating styles that won’t save you much if you run up against a seasoned salesperson.

Kung Fu Monkey Style, or CRAZY PRICE SHOPPING

This strategy is very commonplace and actually works, to some degree.  I’ve used it myself when buying cars, and I think most people have.  Basically, you shop several different dealerships to see which has the best price.  What’s wrong with that?  Well, nothing . . . up to a point.  If someone says they’re going to take my price and go to three or four other places to see if anyone can beat it, fine.  I’ll give them my lowest price and wish them luck, hoping that by making the process easy for them they’ll come back and buy from me.

But if someone says — as people actually do — that tomorrow they’re going out to Riverside to shop my price, and then they’re driving down to San Diego next weekend to check out the dealerships there, and then the week after that they’re popping up to San Francisco to do some car shopping, I say forget about it.  I won’t even give them a price.  Why?

Because what these people are really saying three things to me.  First, they’re telling me they’re not really shopping for a car, they’re shopping for a price.  In other words, they don’t care about things like comfort, quality, performance, safety, etc. They only want the lowest price they can find.  No matter what price I give them, someone else can always beat it, if only by $50.  Second, they’re telling me they’re not searching for a “good deal,” which can be had anywhere, they’re searching for a ridiculously good deal– one that’s not just hundreds below my cost, but THOUSANDS below it.

So even if I win their business I lose money, and I’m not into losing money.  Third, no matter what price I give a hardcore price shopper, they usually won’t buy that day.  Most of these folks will freely admit this.  “Oh no, I won’t buy today regardless.”  “What if I could do 50% off?”  “Nope, I’d still shop you.”  Sorry, then.  I’m not wasting my time.  My advice: If you want to price shop, be open to the possibility that the first dealer you go to could actually give you a price that’s too good to pass up.  If you won’t allow me the opportunity to earn your business that day, you’ve completely eliminated any incentive to try.

Kung Fu Leopard Style, or THE FALSE COMPARISON

A man pulls into our parking lot and gets out to look at a black, five year old Accord we have near the street.  When I walk out to greet him he’s nice enough, but his first question is:

“How come this one’s so expensive?”

“What do you mean?” I ask, knowing full well we have the lowest price in two hundred miles.

“Well, I was just down the street at Larry’s Mirage Garage and they have the exact same car for $4000 less.”

I wish I had a dollar for every time I’ve heard a customer say “the exact same car.”  But the fact is, used cars are like snowflakes.  No two are exactly alike.  All used cars are different in terms of mileage, equipment, and most importantly, condition.  So I started asking the man questions.

“Was the car down the street a six cylinder or a four cylinder?”  He thought for a moment.  “It was a four cylinder.”  “Okay, this car you’re looking at is a six cylinder.  Do you know if the other car was an LX, an EX, or an EXL?”  “I’m not sure,” the man replied.  “Okay, did it have a leather interior?” I ask.  “No, it was cloth.”  “I see.  Did it have a sunroof?”  “Nope, no sunroof.  But I don’t care about that.”  “I understand.  How about navigation?”  He paused.  “Mmm . . . I don’t think so.”  “Sir, it sounds to me like you were looking at a base model LX with a 2.4 liter engine.  This is an EXL with a V-6, leather, sunroof, and nav.  New, this car cost around $30,000, while the car down the street cost about $23,000.  That’s a $7000 difference right there.  Do you see now why our car is priced differently?” “Well, yeah, I see what you’re saying, but they were both black.”

So, in the customer’s mind, because they were both Accords, both the same year, and both black, they were the “exact same car.”  My advice is, if you want to do a true “apples to apples” comparison, don’t compare my car to a tangerine.  Find out what the differences are between two cars, and don’t just assume they’re both the same.  If two similar looking vehicles have drastically different prices there’s usually a good reason.   

Kung Fu Praying Mantis Style, or DEVALUATION

Devaluation simply means finding something wrong with the car you’re trying to buy in order to get the salesman to lower his price.  Some folks are masters at this, starting the devaluation process the instant they see a car they like.

“OH MY GOD, would you look at that?!  Would you just look at that?!!”

“What?  What??”

“It’s got a scratch on it!”

“Where?” I  ask.  “Right there!” they screech, pointing to a tiny chip on the hood as if it was the size of a dinner plate.  “This car’s been wrecked!!!”  Then they proceed to do a thorough “walkaround” on my car, shaking their head and pointing out every single dent, chip in the paint, rip in the upholstery, gap between panels, and defect they can find.

There are many ways to deal with this.  One is to simply say “Sir, it’s a used car.  It’s not going to be perfect.”  Or, a salesman might say “We took every one of those things into account when we priced our car two grand below suggested retail.”  I’ve also done the following:  “You’re absolutely right, sir.  This isn’t the car for you.  Let me show you one right over here that doesn’t have a single scratch on it.”  And then I turn and start walking toward the new cars.  At that point they usually stop me.  “Oh, no, no, I’m not paying for a new one!!”

My advice: People in sales aren’t blind.  We saw the scratch long before you did.  You should have seen how bad it looked before we paid the paint guy $25 to try to buff it out!  The condition of every vehicle on our lot has been well documented, and it has been priced accordingly.

So there you go.  Three different negotiating strategies would-be Ninjas use to level the field between themselves and Shaolin Sales Masters.  Some can work, if not taken to extremes.  As always, avoid a confrontational approach and seek the Way of Harmony.

Good luck snatching that pebble out of the next salesperson’s hand, Grasshopper!

More Car Salesman Confidential here:

The post Car Salesman Confidential: Bad Negotiating Strategies appeared first on Motor Trend.



from Motor Trend http://ift.tt/2l5Op2f

Aucun commentaire:

Enregistrer un commentaire