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Likewise, if the salesperson makes the
first offer, counter with what Thomas calls a "krunch".
"A 'krunch' basically says to the other side, 'I've
got your offer and I'd like you to do better,'" says
Thomas. For example, if the price is $24,000, you might
say, "that's above my budget." The idea is to get the
salesperson to come back with a better offer before
you even begin haggling for a better price.
Since car salespeople are master negotiators, chances are they'll quickly give you a better offer because their first offer is typically higher than what they are hoping to get.
Keep an open mind. Don't go into the negotiation process thinking there is only one way for you to come out of the dealership a winner. Sure, you want to get the lowest price possible, but maybe there are other ways for you to come out ahead. Say the price is still higher than what you would ideally like to pay. Rather than asking for a lower price, another strategy might be to ask for something else, such as an extra year on an extended warranty.
There will also be concessions you'll have to make. There will come a point in the negotiation process when the salesperson will draw his or her line in the sand about something. Whenever you concede something, automatically ask for something else in return.
"For example, rather than saying 'Ok,
I'll raise my price,' why not get in the habit of saying
'I'll give you an extra $100 on it but in exchange for
that I'd like you to deliver it,'" says Thomas. "Each
concession has value, and if possible it should be leveraged
for something of value received."
Treat
negotiation points as a package. If you have
multiple things to agree on, wait until you've discussed
each one before making a final decision. For example,
when buying a car, you have to negotiate not only the
price of the car, but you may have to discuss the date
the car will be ready and the warranty coverage as well.
You might agree to a price but be dissatisfied with
the warranty coverage. If you already agree to buy the
car before you discuss the warranty coverage, you lose
some of your leverage. However, if you haven't agreed
to the sale and the warranty question comes up, you
can threaten to walk away from the entire negotiation
process. Even if the salesperson can't do any better
with the warranty, he or she might instead be able to
lower the price or add another option to the car.
The key to negotiation is to be open and
willing to look at all of the ways you can make a deal
work out for all parties involved. Always know your
boundaries or the circumstances under which you will
walk away from the negotiation. Also, never give a definitive
"yes" until all of the negotiation points
have been discussed.
"In negotiation, you keep your finger on all the pieces until the very end," says Thomas. "Until that moment, you have every right in the world to change any aspect of anything you've agreed to in order to make the tentative transaction more appropriate."
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