Don't Buy a Car Until You Watch THIS Video | How to Negotiate a Used Car 2023

Summary

This video script showcases a negotiation role-play between a customer, Ray, and a car salesperson, Zach, as they discuss the purchase of a 2019 Honda Odyssey. Ray uses research and data to challenge the pricing, additional fees, and other charges, highlighting transparency and informed decision-making. With a strong focus on the 'out the door' price and using comparative pricing, Ray skillfully negotiates a better deal, while emphasizing the importance of a pre-purchase inspection and knowing one's budget. The script offers valuable insights into how to approach car-buying with confidence and knowledge.

Takeaways

• 😀 A clear strategy for negotiating a used car is demonstrated, with the focus on understanding pricing beyond just monthly payments.
• 😀 Always ask for the 'out-the-door' price, which includes all taxes, fees, and additional charges.
• 😀 Salespeople often add non-negotiable items like GPS systems and reconditioning fees, so be prepared to challenge these additions.
• 😀 Leverage tools like car comparison reports and vehicle history tools (e.g., CarEdge) to back up your negotiation with factual data.
• 😀 Don't get distracted by the salesperson’s tactics; stick to your main concern: the final price you’ll actually pay.
• 😀 Ensure you know what the true market value of the vehicle is by comparing it with similar listings in the area.
• 😀 Recognize that discounts or deals may come with hidden costs, and question any unexplained fees or charges.
• 😀 A pre-purchase inspection is a crucial part of the process to ensure the vehicle’s condition matches the seller's description.
• 😀 Understand your own budget and be sure the vehicle you’re considering fits within it before entering negotiations.
• 😀 Pre-approval for financing is key, so you’re fully aware of your loan options and payment range before stepping into the dealership.
• 😀 Always be prepared to make a counteroffer based on your own research, and ensure that your offer reflects the true value of the car after considering hidden fees.

Q & A

What is the main focus of this role-play script?

The script focuses on demonstrating a negotiation between a car salesperson and a customer looking to buy a used car, specifically a 2019 Honda Odyssey, in the summer of 2023. The goal is to show the process of negotiating the out-the-door price and understanding various fees associated with the car purchase.

What is the customer's primary concern during the negotiation?

The customer's main concern is understanding the out-the-door price, which includes all taxes, fees, and additional charges, instead of focusing on monthly payments or financing options.

How does the salesperson attempt to convince the customer of the vehicle's value?

The salesperson highlights a large discount on the car (a $2600 reduction) and emphasizes the vehicle's great condition and the limited availability of the model. The salesperson also mentions that additional costs, such as GPS and reconditioning, are mandatory and non-negotiable.

What tool does the customer use to challenge the salesperson's pricing?

The customer uses a report from an organization called 'Courage' to compare the vehicle's price with similar cars from other dealers. This helps the customer argue that the current price is inflated compared to other offers in the market.

Why is the customer skeptical about the additional fees like GPS and reconditioning?

The customer views these additional fees as unnecessary or inflated, especially since the reconditioning fee seems to be part of the basic cost of the car and not a separate charge. The customer also questions the legitimacy of the GPS system being an added cost when it wasn’t requested.

How does the customer substantiate their position on pricing?

The customer provides data from the Courage report, showing that comparable vehicles from other dealers, like Beck and Mastin Buick and CarMax, offer lower prices for similar or even better-condition vehicles. This reinforces the argument that the vehicle's price is too high.

What does the salesperson suggest in response to the customer's concerns about the pricing?

The salesperson attempts to explain that some charges are unavoidable, such as reconditioning, GPS, and other dealer fees. However, the salesperson is open to discussing and negotiating the overall price, although they emphasize that certain charges are non-negotiable.

What is the customer's proposed counteroffer?

The customer suggests a price of $29,000 for the vehicle, excluding the GPS and reconditioning charges, with additional costs only for taxes, title, registration, and fees. This offer is based on comparable vehicles in the market.

What other factors are important to the customer aside from the price?

Aside from the price, the customer emphasizes the need for a pre-purchase inspection to ensure the vehicle is in good condition. Additionally, the customer mentions that they are well-prepared by knowing their budget and what they can afford before entering the negotiation.

What does the video suggest about preparing for car negotiations?

The video suggests that buyers should come well-prepared by knowing their budget, having a clear understanding of the car’s value in the market, and getting pre-approved for a car loan. Additionally, using resources like the Courage report and pre-purchase inspections can give the buyer leverage during negotiations.