Navigating the used car market can feel like deciphering a secret code, especially when you’re aiming for the best possible price. In today’s climate, snagging a significant discount on a used vehicle is more challenging than it once was. Umesh Samani, owner of Specialist Cars, an independent dealership in Stoke-on-Trent, confirms this trend, noting that negotiating prices down on used cars is currently a tough game.
Samani, whose dealership moves around 150 vehicles annually, points to a fundamental issue: scarcity. “Since lockdown, the used car market has faced a real shortage of stock,” he explains. “Looking back to 2020, the number of new car registrations plummeted, creating a ripple effect. Consequently, finding good quality four-year-old cars is increasingly difficult. The same applies to 2021; the availability of three-year-old models remains constrained.” This supply squeeze has shifted the dynamics of negotiation. Where discounts of £1,000 to £2,000 were once within reach, buyers now typically find themselves haggling for a few hundred pounds off the sticker price.
However, the landscape isn’t entirely bleak for savvy buyers. The digital age has empowered consumers with unprecedented access to online marketplaces. This increased transparency forces dealerships to operate with leaner margins as they compete for your business. This competitive environment inherently reduces the likelihood of overpaying. Furthermore, the supply chain disruptions that originated during the pandemic are anticipated to ease eventually. As the flow of new vehicles normalizes, the balance of power in the used car market should gradually tilt back towards the customer, opening up more opportunities for negotiation.
Building Bridges, Not Walls: The Salesman Relationship
Whether your sights are set on a brand-new model or a reliable used car, cultivating a positive rapport with the dealership’s salesman is invariably beneficial. Samani emphasizes the power of a friendly approach: “The key is to engage as a friendly customer. While you are there to make a purchase, fostering a positive interaction is crucial.”
He illustrates this with an anecdote about a customer who traveled a considerable distance to negotiate a price. “I was upfront with him before his journey, explaining that substantial discounts were unlikely unless he could identify a genuine fault with the car upon inspection. The price was largely firm,” Samani recounts. “Despite this, he made the trip. We shared a cup of tea, engaged in friendly conversation, and he made a spirited attempt to negotiate. Ultimately, as a gesture of goodwill, I took £200 off the price.” The customer purchased the car, satisfied with the transaction. Samani highlights the essence of the interaction: “He valued the negotiation process itself, and it was conducted in a good-natured way, with some lighthearted banter. Both parties were content with the final agreement.”
Daryl, another industry expert cited in the original article, echoes this sentiment, adding, “If you connect with someone on a personal level and they are acting with integrity, you’re more likely to secure a favorable deal.” Building a connection, therefore, can subtly influence the negotiation process in your favor.
Enthusiasm: A Double-Edged Sword
While friendliness paves the way for constructive dialogue, unbridled enthusiasm for a specific vehicle can inadvertently weaken your negotiating position. Daryl cautions against appearing overly eager. “Walking into a dealership and exclaiming, ‘I absolutely love this car, I have to have it!’ is like waving a green flag to a salesman,” he explains. From a sales perspective, such overt enthusiasm signals a diminished need to offer significant incentives.
Daryl’s past experience in car sales informs his perspective. “One of the reasons I transitioned away from sales – despite achieving success – was a persistent discomfort with the inherent pressure to maximize profit from each customer. It’s a reality of the industry, but not always a comfortable one.” The takeaway? Channel your friendly demeanor towards building rapport with the dealer, but maintain a more reserved and pragmatic stance regarding the specific car you’re considering.
The Age of the Salesman: Experience Trumps Youth
In bygone eras, a common tactic involved targeting the youngest, least experienced salesman, hoping to leverage their inexperience to your advantage. The logic was that a novice might be more easily flustered, leading to potential errors or concessions.
Daryl acknowledges this historical approach: “Some salespeople, particularly those newer to the role, can become overwhelmed when faced with persistent or multifaceted questioning. Creating a slightly flustered state isn’t necessarily detrimental to the buyer, as it can increase the likelihood of mistakes being made by the dealership.” He recalls personal experiences of being surrounded by multiple family members of a potential buyer, each posing questions, designed to unsettle him and gain an edge. “It was all part of preventing the salesman from dictating the terms of the negotiation.”
However, the modern dealership landscape has evolved. Individual salesmen today wield less autonomy in pricing decisions. “Sales processes are far more standardized now,” Daryl observes. “Sales staff often operate with pre-scripted approaches, delivering predetermined lines and offers.”
Samani concurs, emphasizing the limited power of even junior staff to deviate from established pricing structures. “Regardless of a salesman’s experience level, their actions are ultimately governed by sales managers. A junior salesman will invariably consult with their manager. The outcome is unlikely to be a substantial price reduction like £1,000. More realistically, they might be authorized to offer a modest £200 to £300 discount to close a deal promptly.”
Therefore, instead of seeking out the youngest salesman, your efforts are better directed towards engaging with a more seasoned sales professional. Experienced salesmen often possess greater authority to authorize discounts and are more adept at navigating complex negotiations. Building rapport with someone who has the power to make decisions is a more strategic approach.
Timing is Everything: When to Step into the Dealership
The most impactful factor in securing the best possible car price often isn’t what you say, but when you choose to visit the dealership. This is particularly pronounced in the realm of new car purchases. Manufacturers frequently incentivize sales through bonus structures tied to dealership sales targets, typically evaluated at the close of each financial quarter.
Daryl elaborates on this quarterly cycle: “For example, a manufacturer might offer a bonus if a dealership sells 20 units of a specific model, say a Ford Puma. If a dealership has sold 19 Pumas by the end of the quarter, it becomes highly advantageous to reach that 20-unit target. In such scenarios, dealerships are far more willing to offer significant discounts – effectively maximizing any available incentive – to secure that extra sale and unlock the bonus.”
He pinpoints the optimal times to capitalize on this dynamic: “The end of March, June, September, and December are typically the most opportune periods to visit a dealership. These are the end points of fiscal quarters, creating heightened motivation to meet sales targets.” Walking in at the right moment can dramatically increase your chances of landing a “mega deal.” Conversely, approaching a dealership at the beginning of a month is often less fruitful, as they have the entire month to achieve their sales objectives and are under less immediate pressure to discount.
Samani confirms that similar principles apply to used car dealerships, particularly concerning inventory management. “Some dealerships operate under a policy where cars that remain unsold for 90 days are moved to auction,” he explains. “If a buyer times their visit strategically, approaching the 75- to 80-day mark for a particular vehicle, the dealership might be increasingly motivated to negotiate a price reduction. Discounting to a retail customer becomes more appealing than selling at a trade price through auction.”
He shares an anecdote illustrating the power of timing: “One of my customers recently purchased a car for his son at the end of June. The deal he secured was remarkably favorable – almost unbelievable. His success was simply a matter of being in the right place at the right time.”
Armed with this knowledge, don’t hesitate to inquire about how long a used car has been in the dealership’s inventory. This information provides valuable insight into their eagerness to sell. Daryl concludes, “Exceptional deals on used cars often materialize because a vehicle has lingered on the lot for an extended period. Perhaps due to an unpopular color or other factors, it simply hasn’t sold. In these instances, buyers can inadvertently stumble upon remarkably good deals simply because the dealer is highly motivated to move the inventory.”
