Now it's showdown time. You've decided you're interested enough to make an offer. You want to give the guy a fair price, but you don't want to be gouged. How do you know what the right price is? The truth is that there is no real right or wrong price, just an agreeable price. That's a price where both you and the seller are satisfied. And, how do you reach that figure? Negotiation.

Negotiating is an art; some people have the talent, others don't. If you have it, this chapter is unnecessary. If you don't have it, no book is going to give you all the skills and nuances to be an expert. What this chapter can do is give you a few tips on basic negotiating. Just remember, not all techniques work in all situations, so don't use these tips as absolutes; these are just suggestions.

First, don't commit.
Don't say "I love this car" (even if you do), or "I've got to have this one." The more eager you are, the weaker your bargaining position. Steer toward more neutral phrases, and try to throw in a minor negative point, like "This one might be suitable if the price is right--if only it were blue (or red, or any color other than the one it is)."

Second, try to get them to give the first figure.
Ask them if they had a price in mind that they would be willing to take. Whatever number they say, don't react positively, even if it's lower than what you are willing to pay. Say something like "That wasn't the figure I had in mind. Is that your best price?"

Now is when you should have your notes from your inspections and road test. You need to be careful not to overplay this card, because if you get too picky, the seller will just say forget it. However, if you found something really serious, someone is going to have to fix it. If the seller doesn't want to pay for the repair, then the purchase price should be adjusted to cover that additional cost.

Once the seller has given a price and it has been adjusted for any expected immediate necessary repairs, subtract between 10-20%--or less if you really don't want to pay any more--and ask if they would consider that price. You have now set the range, with your offer at the bottom and their asking price at the top. The worst that can happen is they will say no. Remember, you can always come up, but once you set the floor, you can't go down. Now you are negotiating, looking for a price between the upper and lower limits that will be mutually agreeable.

If you are negotiating with a dealer, don't let them shift from a sales price to monthly payments--don't even suggest that you want to finance. Too often, buyers allow themselves to agree to a payment figure and end up losing all the advantage they gain through negotiation. First settle on a price then, if you want to finance, handle that separately. See the chapter on financing for suggestions and tips on how best to do that.