The process of buying a car is one that is more than simply handing over the cost of the stated price and taking home the car. Whilst some purchases in life are at a fixed cost, others are not and cars fall comfortably into the latter group.
When purchasing a car, it is important to know how the entire process works, as going into the process believing that you have to pay the price that is stated on the cars price tag is one of the most expensive ways to purchase a car.
Firstly, car salesmen are almost always paid a basic wage with the ability to earn commission on every car sold. With every car they have in their dealership, they will have been set a figure that is the absolute bare minimum that they can go to, but they will very rarely disclose this figure. Instead, they will work with the customer to slowly reduce the price to one that is acceptable by the customer.
The main reason why car salesmen do not simply offer the car at the lowest price possible is that their commission is based on not only how many cars they sell, but also on how much money they have managed to retain above the minimum sale threshold. For example, if a car were to have a minimum sale price of five thousand pounds and the salesman managed to sell it for seven thousand pounds, this would yield a greater commission than if they sold it for six thousand pounds.
The
entire car buying process may seem slightly dishonest as the car salesman will more often than not say that they cannot go any lower at a price where they still can, but this should be considered the norm and how the whole industry works.
For some people, haggling for the price of a car to be lowered does not come naturally and therefore other incentives should be looked at rather than a large reduction in the price.
Most car dealerships will be able to offer a range of extras and these can often work out more beneficial financially overall than a reduction in the price. For example, if you had managed to reduce the cost of the car by five hundred pounds but felt that the price was still too high, you could ask the car salesman if they could provide free servicing for the length of the warranty they offer. This can have fantastic benefits, particularly if buying from a main dealership as if you were, for instance, to buy BMW, by having a BMW dealership stamp your service book, this would add increased value to the car when you came to sell it.
When purchasing a car, you should not be ashamed to say that the price is too much, be afraid to ask for the price to be lowered or unwilling to ask if they can offer incentives. Car salesmen can serve dozens of people each week and they are used to haggling to get the best deal for both them and the customer.
Author Resource:-
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