Like most things, there is a science to negotiating the price of a car. Odds are you’ve purchased several already and are more knowledgeable in this area than you think.
One dynamic that changes is the that you are no longer looking for yourself but to resell.
How do you address that with the seller? Should you even mention that to the seller?
The short answer is no.
One of my favorite movie quotes is, “Welcome to Fight Club. The first rule of Fight Club is: you do not talk about Fight Club. The second rule of Fight Club is: you DO NOT talk about Fight Club!”
So, welcome to car flipping. The first rule when negotiating with a buyer is: do not talk about Car Flipping. The second rule of negotiating with a buyer is: you DO NOT talk about Car Flipping!
I would like to preface that by saying I am never for lying to someone to get a better deal on a car. To me, that is a path I just won’t go down.
In my experience it helps to keep the fact that you are buying the car to resell out of the conversation when negotiating. The following are three reasons why you should go incognito when negotiating and how you can do that honestly.
1. Helps In Lowering The Price. When negotiating to buy a car, there is one main objective: buy the car for the least amount possible.
When a seller knows you are planning to buy their car to resell, it plants the seed in their mind that their car is worth more because you are planning to make money on it.
Instead of telling the seller you’re buying it to sell, pick a characteristic of the car and create a reason as to why you need a car like that.
For example, I bought a 2004 Chevrolet Tahoe Z71 recently. When discussing purchasing the car I mentioned I was looking for a car I could fit my family of five in comfortably. This fact is completely true, and it sounds a lot better than, “I’m buying this car to sell it for thousands more than I’m going to pay you for it.”
If you are looking at a fuel efficient car, say you are looking for something to save money on gas.
If you’re looking at a Jeep, say you’re looking for something to have a little fun in.
I think you get the idea. Don’t disclose you’re buying it to resell, but also tell the truth. Don’t be the cliché car salesman type who will say anything to close the deal. You have to be able to sleep at night. Do the right thing.
2. Allows For An Emotional Connection. I once bought a refrigerator on Craigslist right after I was married and the reason the woman came down from $900 to $400 was because in her words, “It was going to a good home.”
Seriously lady?!? It’s a refrigerator!
She came down on the price because she felt like she was helping my wife and me out by giving us a good deal.
You want to be in that same position when negotiating on a car.
When I make an offer on a car and someone counters higher, I will often say, “I wish I had more to spend but all I have is $XXXX.
This is completely true because I only have so much to spend on a car based on what it’s worth to me.
This lets the seller know that you are serious about purchasing, but only have a set amount to spend. They can only say one of two things: yes or no.
If they say no and you are willing to pay more, you can always “come up” with more money.
3. Makes Negotiation More Fluid. Let’s be honest. No one likes a pushy salesman, telemarketers, door to door salesman, etc.
They make us uncomfortable. We don’t trust them. Why? Because we feel like they will say anything to convince us to buy their thing.
It is much easier to negotiate with some as an “average Joe” than “Joe the car flipper”.
When people know you’re looking at their car to flip, whether they realize it or not, they sometimes go into defense mode.
You lose the option of the “going to a good home” mentality.
The Exception To The Rule
The one exception to this would be when you’re looking at a car that needs a significant amount of work. Be it body damage or major mechanical issues.
The perception of the cost of the repair to the seller is often much higher than it can actually be fixed for.
When a car has significant damage, it doesn’t hurt you to tell them you plan to fix it up and sell it because they then assume that you are going to need a little room to make a profit, which gives you more room to negotiate.
Negotiating is one of the most important skills you will need to develop to be a successful car flipper. It’s where the money is made. Going incognito is just one small facet in this process, but it is an important one.
Be honest. Make a connection. Get the price down. Buy the car.
How about you? Have you ever negotiated a great deal on a vehicle? I’d love to hear about it in the comments below!
P.S. If you’re interested in more helpful car flipping techniques and receiving the details of ever car I flip, sign up by entering your email in the drop down box at the top of the page. It’s free and only takes about 6.5 seconds (ok I made that number up). I look forward to sending you valuable content straight to your inbox!