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Black Belt Bargaining For Car Buyers

By Michael Soon Lee, CRS, GRI

Are you thinking about buying a new car? How would you like to get the best deal possible? You can do this by simply being a better negotiator, yet most people in the United States rarely take advantage of the power of bargaining. In other countries, like Asia, people there negotiate everything everyday and save thousands.

Negotiating is like a martial arts contest where power, leverage and timing can mean the difference between winning and losing. For instance, a martial artist would never go into a contest without first spying on his opponent to find weaknesses. Similarly, a savvy car buyer will discover that dealers usually want to sell cars more in the last two weeks of December when everyone else is focused on buying Christmas gifts and from July to October when dealers are trying to make space for the new models. Depending on the make and model there can be dealer incentives in addition to rebates. There are a number of websites that will provide new car dealer invoice prices, rebates and incentives such as www.cars.com; www.invoicedealers.com; and www.edmunds.com. You can also save hundreds and possibly thousands of dollars by researching financing options in advance as well.

Before engaging in contest, a martial artist warms up by stretching. Likewise, a savvy negotiator warms up by building rapport and finding common ground with the other party, because people like to do business with people they like. Do you feel comfortable with the salesperson and are they honest and open? If not, go someplace else. Your intuition is vital in this regard.

Next, fighters will cautiously probe each other looking for weaknesses. In bargaining this is done by throwing offers onto the table to see how the other party reacts. Experienced fighters often use guile to lure their opponents into range by pretending a blow has hurt them more than it really did. Similarly, when bargaining on a car you could pretend to be shocked by the dealer’s offer to get him to come down in price. Visibly showing surprise or hurt is called flinching and it used by master bargainers to gain concessions without giving up anything.

Smart fighters never wait until the end of the round to try and score points because their opponent will know you are desperate. Similarly don't wait until your lease had ended or your car is on its last legs before starting to shop for a new one. It generally takes at least two months to make a sound decision about a car so start early. This is a purchase you will have to live with for many years to don’t buy or lease in haste.

Martial artists are taught to read the body language of their opponents so they can see a blow before it is unleashed. Experienced negotiators can literally read the other party’s mind by watching body language and listening carefully. If a dealer says, “My price is $25,000 but make me an offer” you know his price is flexible before you even start. Without saying a word a salesperson’s body language can also tell you if they like or dislike any offer you make. One unmistakable clue is to watch the pupil of his eyes closely – if he likes your offer, his pupils will get larger while the opposite indicates dislike.

Martial artists do not believe in win-win and neither should you. Even when sparring their best friend they want to give their best effort. When bargaining for a car, fight for the best deal possible assuming that the dealer will take care of themselves because they will.

Fighters are supremely aware of time and try to use it to their advantage by saving as much energy as possible for the last few seconds of a round when might be able to score points against a tired opponent. Black belt negotiators put their opponents under time pressure by setting deadlines. You might visit a car dealership only an hour before you have a doctor’s appointment so he must give his best offer before you leave, likely never to return.

In martial arts, as in life, there are unfair fighters who will do anything to win, so you must protect yourself at all times. Negotiators must be aware of unfair tactics such as nibbling, which is asking for concessions after an agreement has been reached such the dealer asking you to use his financing company or buying expensive add-ons. If this happens to you just remember this blocking technique, “Before you give a concession – get a concession.” For example, if a dealer says, “Why don’t you buy the extended warranty because it’s good protection” you can respond with, “If I did, would you throw the upgraded stereo system?” Once a nibbler realizes that every time he asks for something extra you will ask for something in return he will stop.

Some unscrupulous dealers will copy your drivers’ license to run unauthorized credit checks on you while you’re out on a test drive. Make copies of your license and when they ask for your license, hand them the copy, and get it back when you leave. Write on the copy that the dealer may NOT run a credit check on you. Remind them the FTC fines $2500 for unauthorized credit checks because multiple inquiries can lower your credit score.

Finally, when a contest ends, martial arts fighters will bow to each other as a sign of respect as if to say, “You were a worthy opponent” which makes both contestants feel good whether they won or lost. A smart negotiator also congratulates the dealer for having gotten a good deal. Don’t forget that you will probably be having your vehicle serviced at the dealership. If he feels he needs to increase his profit with you he certainly could find a way.

Just like becoming an accomplished martial artist, achieving black belt status in negotiating takes practice with both small and large purchases. Every time you pull out your wallet ask yourself if this is an opportunity to hone your bargaining skills. If it is – get out there and earn a black belt!

ABOUT THE AUTHOR: Michael Soon Lee, MBA, is the author of the new book “Black Belt Negotiating” (AMACOM Books, 2007), a world class negotiator and martial artist. He has bargained on everything from major real estate purchases to discounts on gas for his car. Michael shows people how to use martial arts secrets to gain leverage in any bargaining situation. His website is www.EthnoConnect.com and his phone number is: (800) 417-7325.

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