$6.$ The process of negotiating a vehicle purchase

What Is Involved in Negotiating the Purchase of a Vehicle?

Negotiation involves the process of discussing an asset$$s terms of sale between a buyer and a seller. It is usually associated with higher$-$priced items, such as a vehicle, home, appliance, or other major $($long$-$lived and expensive$)$ asset.

$1.$ The process of negotiating involves:

paying the sticker price without question.

making offers and counteroffers for the terms of the transaction.

A variety of different elements associated with a vehicle$$s purchase are negotiable.

$2.$ Which of the following aspects of a car purchase transaction can you negotiate? Check all that apply.

The vehicle$$s safety features, such as the presence of safety belts and air bags

The inclusion of a free satellite radio or another option in the vehicle

The price of options in the vehicle

The loan$$s interest rate and term $($length$)$

$3.$ What tactic do car salespeople and their managers do to minimize buyer negotiations?

They say to the buyer, $$Take all the time you need, visit other dealers, and call me when you$$re ready$.$

They push for the buyer to buy it now.

$4.$ Dan is completely intimidated about the thought of negotiating the price of a new car. He$$s called you and asked for a quick lesson in price negotiations. You$$ve offered to help him understand several basic rules that should make his negotiations more successful.

Which of the following statements will increase the effectiveness of his price negotiations? Check all that apply.

Stop negotiating after one cycle of offer$-$counteroffer.

Tell the salesperson that you have obtained offers from at least three other dealers and he or she has the opportunity to meet or exceed their best offers.

Separate the price of the vehicle from the financing or trade$-$in aspects of the transaction.

Start by offering a price lower than the sticker price.

$5.$ After listening to your advice, Dan is now considering using a buying service or a professional shopper, but he$$s not clear on how either type of service works. $$ A new$-$vehicle buying service requires the buyer to pay a $($negotiable$|$nonnegotiable$)$ discounted price from a dealer that has agreed to participate in the service.

$$ Dan will pay a price that is often within $(3\%|4\%)$ of the dealer$$s invoice price. In turn, the buying service receives its income from the $($dealer$|$buyer$)$ in the form of a finder$$s fee.

$$ A professional shopper, on the other hand, charges a fee that is based on the vehicle$$s invoice price and is paid by the $($seller$|$buyer$).$ As opposed to actually purchasing the vehicle on the buyer$$s behalf, the buyer can also ask the professional shopper to simply collect price quotes from several dealers. This service costs $($more$|$less$)$ but requires that the buyer finalize the deal

$6.$ If Dan wants to avoid the hassle of haggling over the vehicle$$s price and doesn$$t want to pay a finder$$s fee, then he should:

Use a new$-$vehicle buying service

Buy the car himself

Use a professional shopper