Lesson learned - buying cars

I am just so used to buying from the big supermarket, when all the items are selling at a listed price. For the regular masses, there is no bargain, just a buy or not decision.

Cars are big price-tag items. Buying cars is a different game, it's still preserve some of the traditions of the old industry. Where price negotiation is going on between the sellers and the buyer. While different from buying a house, the seller in most cases are big car dealers.

I hate buying cars. I felt I am always paying too much. I bought my first car over 10 years ago. I just purchased another car yesterday. And I made the same old mistakes once again. Guess it's time to write down what I learn from the lesson. To get a better deal on a car.

1. Don't trust the salesman.
They pretend to be friendly, but the fact it no matter how sincere they look, they are not your friend. They don't know you or anything about you to start with. They say they try to find you the best deal but in reality, they are just trying to sell you something. They work for the dealership and that pays their bill.

2. Do your research.
Compare reviews and find the best car that's suitable for you. Call around and see how much your friends paid for the same model. That can be your starting point. There are also paid services on the Internet that gives you the invoice price of the vehicle.

3. Read between the lines.
When the salesman said, " We only make $800 on this vehicle, the best I have seen was $400 off.." It means you can at least get $400 discount on this vehicle, and likely $800. The '$400 ' is the number they give to manage your initial your initial expectation.

4. Allow more time for negotiation.
Negotiation takes time. So allow plenty of it, never do it in a rush. Take your time and relax, give yourself some breaks in between if need to.

5. The negotiation.
Start with the invoice price and negotiate up. Not down from the MSRP. Don't close the deal until you are satisfied with it. If you get to the point when price can't be moved any further, try ask for accessories. Don't start putting in the accessories until the there are no room for moving the price.

6. Prepare to walk.
In most cases, there should be more than 1 dealership in town. You can always walk away from the negotiation if it doesn't favor you. In case you can't find a better deal elsewhere, ask for how long would the dealership honor their offers.

Insider never see the whole picture as well as an outsider does. Once I signed the paper, everything became clear and came into places. The puzzle was solved. I immediate saw what I should have done but did not. I am intending to write this as outsider to insider me who plan to buy another car in the future.

Price prevails, and it's almost impossible to find the best deal. Hope my experience this time can help us all find a better deal for next time.