BUYING THE CAR
Finally, you are ready to spend some cash, but only after you have followed the steps in the previous chapter. This is the time when you should absolutely know all of your numbers:
a. What is the most money you are willing to pay for the car?
b. How much time and money will you have to put into the car?
c. What money can you sell it for in the end?
If you have followed the Evaluation process in the previous chapter then you will have the answers to the 3 questions above. If you don’t have all three answers then do not proceed. Go back to Chapter 3 and evaluate the step you are missing.
It is critical for your success that you become an expert at evaluating these 3 points. If one is off, that may be where you lose money instead of making it.
After you know your a,b,c’s it is time to make an offer. Usually you will never pay the price someone is asking for the vehicle, but, then again sometimes a person needs some cash in his pocket so badly he will almost give it away.
Time to Make an Appointment to look the car over if you haven’t already done so. Having all of your facts and figures (including your car guides just in case) with you it is time for negotiating for the price you want to pay. Here is where you need to know a few negotiating tactics.
1. You should have already asked this question over the phone, but again; does this
car have a clear title?
2. You want to start looking at the car more closely. Does everything that was in the ad check out? Do you see large dents or other things that the seller didn’t tell you about over the phone or didn’t show up in their photos? Closely inspect everything about the car that was told to you or you read in the ad. Any faults you may find that were not mentioned should help you get a lower price if you choose to purchase the vehicle.
3. Never show up to inspect a car and the first words out of your mouth are; “You are asking way too much for this car”. That just insults the seller and they may not want to negotiate with you at all.
4. If you truly think their price is way too high, just tell them that you just can’t pay that much. Many times that statement alone will make them drop their price without you even asking.
5. While you are taking your time inspecting the car try not to talk too much, if at all. My experience has been that by not saying anything as you look at the car for sale, the owner gets nervous that he may not have a sale. More times than I can count, they will just shout out a much lower price because they think you may be having second thoughts.
6. Now just because they may have dropped their price doesn’t mean you have to stop there. For every dollar you get them down is an extra dollar in your pocket. There’s usually a price somewhere in the middle you can both agree upon.
7. Never get emotional over a car. I said this before and it’s worth saying again. Unless you decide to buy that car for yourself, don’t let your emotions drive you to disregard all of the evaluating you already did. No matter how beautiful or perfect the car is, don’t pay more than you already figured in your evaluation.
After you have negotiated a great price you have to pay for the car. Those arrangements can be made however you and the seller agree. In the Appendix of this article is a Bill of Sale and a Sale Contract. I highly recommend using both of them at the time money and title change hands.
You will need to write the VIN on the Bill of Sale and the Sale Contract. While doing this have the actual title in hand and compare the VIN on the title to the VIN on the car. Always do your due diligence.
If you give someone a deposit to hold the car while you get more money to finalize the sale, you can use the same Bill of Sale and write in the dollar amount of the deposit, balance due and the date that you have until you come back with the rest of the money. This protects you from the chance the seller finds another buyer later that afternoon and sells it out from under you. It’s also proof you gave him a deposit. Make sure everyone signs it whether it is just for a deposit or paid in full.
When the car is paid in full use the Sale Contract (in the appendix), fill in all the blanks, double check VIN, and be sure everyone signs and dates the contract. Next, the seller will sign the title (you can verify if the seller is the same person as listed on the title by asking them to show you their drivers license, if you have any doubts). Depending on your state, some require seller’s signature to be notarized.
Now, with these excellent negotiating tips I just provided, you should be going home with that car and a big smile on your face!