Monday, February 01, 2010

Improve your negotiating power

Someone said that the car salesman charges a higher price if you pay by cash and a lower price if you take a loan to buy a car. This is the ruse used by salesman.

The consumer should exercise your negotiating power. If the salesman wants to charge a higher price for paying cash, go and look for another car dealer. There are many salesmen who are hungry to get an order. Do not allow the salesman to force you to take a loan and pay interest, when you have the cash to pay outright.

Before you buy any product, always shop around and get a few quotes. You will have a stronger negotiating power.

Tan Kin Lian


Anonymous said...

Another trick used would be to give lesser goodies/accessories when not taking up the car loan.
Shouldn't cash is KING?

Anonymous said...

This is because by paying cash, the salesman does not get a cent from the bank ( which usually provides the loan). The cut given to customers comes from part of that money given by the bank.

One can usually negotiate a better price from salesman who has to fill his quota, or join like-minded car buyers who would want to form a group, to negotiate better terms.

Anonymous said...

form a car spree. and buy in group

Anonymous said...

The car dealer also earns a cut out of the COE bidding process. Not too sure whether this extends to the sales exec.

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