The Negotiator Magazine

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The next part of the negotiation began as I was ushered into the finance manager’s office. It was here that the major profits from the deal were to be clinched for the dealership not on the price of the car.

I was told that a protective coating has been sprayed on the car and I would be billed for over $300 for that unmentioned add-on. Of course, I refused to pay. The finance manager waived the amount as a generous concession. He would call upon it later to encourage a reciprocal concession in the larger financial negotiation to follow.

As he turned to financing the car, the finance manager presented his “best rate.” Having researched and obtained a financing commitment two percent lower than the “best rate,” I turned it down. We settled at an interest rate even lower than my alternative offered.

The big ticket item of extended warranty coverage at only $1500 was the next item on the finance manger’s agenda. Here was a major profit-maker for the dealership. I refused it, of course. After all, we know this car is in excellent condition.

What then has happened in this negotiation? My goal was always to acquire this model car in excellent condition at the lowest possible cost. The price of the car was always only one component of this purchase. Always negotiate a package.

Best wishes,
John Baker

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