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Purchasing a new car can become a fairly complicated process. It means spending hours on researching a suitable car, testing long forgotten math skills to calculate the finance terms and prepping to get the best price out of a car deal. However, the benefits to negotiate a car price are plenty. With a negotiated price, not only do you pay less money but you can also use the money and invest it elsewhere. Learning how to effectively negotiate a new car price is a skill that you can master. Keep the following tips in mind while you set out to negotiate the price of your next car.

1) Do Your Homework

Before turning up at the dealership, make sure you have done enough research regarding the car you wish to purchase. Conducting a good research will assist you in getting a clear picture of the type of car you want, the required features and the approximate budget you can allocate to the car. Many car manufacturers have special prices on their website. You could use the research to your advantage during negotiating the price of the car. If you go into the dealership with an idea of a fixed car and an approximate price, you will be able to dismiss any attempted sales tactics to make you buy an unnecessarily expensive car.

2) Visit Several Dealerships

After conducting a thorough research, try to visit more than one dealership. Amongst all the prices, compare the price of the lowest deal with another dealer and ask if he can beat the previous price. Another reason to visit various dealerships is to get the car with all the features you require. Expanding your reach will enable you to obtain the best price while still retaining all the features of the car you wish to purchase.

3) Negotiate on the Total Amount

Many a times, an illusion of a lower monthly payment clouds your judgment. A low monthly payment is usually spanned out over a long time frame with a heavy interest rate. In order to negotiate the lowest price, make sure you negotiate the final price based on the total amount of the car. Additionally, if you provide a down payment and repay the remaining amount within a short time frame, you will be able to make a better offer to the dealer.

4) Lay a Floor Price and a Ceiling Price

During the process, have a mental range between which you would like to negotiate your car. The floor price is the lowest price at which you should start negotiating. Usually, the floor price is 5 to 10 percent lower than the car manufacturer’s price. Alternatively, a ceiling price is the final price up to which you are willing to pay. If any dealer quotes a price that is higher than your ceiling price, you should shop around and look for other options. Therefore, a floor price and a ceiling price will assist you in cracking your deal and help you purchase the car within your range.

While purchasing a new car may be a long process, negotiating the deal doesn’t have to be. Consider the above pointers before you set out to negotiate the price of your next new car.

In longer or extended negotiations, it is not uncommon for parties to encounter impasses, stalemates, and deadlocks with the opposing side. This is especially true in certain passionate, heated, or emotional negotiations. It can be easy to confuse an impasse with a deadlock, and some people even use the terms interchangeably. So I think it is good to have a working definition of the three to recognize the differences when labeling such an event during a negotiation. I think Roger Dawson did a good job defining the concepts in the 15th Anniversary Edition of “Secrets of Power Negotiating: Inside Secrets From a Master Negotiator.” Here is how this updated for the 21st century text defined these concepts:

Impasse: You are in complete disagreement on one issue, and it threatens the negotiations.

Stalemate: Both sides are still talking, but seem unable to make any progress toward a solution.

Deadlock: The lack of progress has frustrated both sides so much that they see no point in talking to each other anymore.

The importance of understanding the differences, especially between an impasse and a deadlock, is that deadlocks are very rare, and more than likely when you reach a difficult situation where it appears that you are deadlocked, you will find that it is only an impasse and with some creativity and good negotiation skills, you can go beyond the impasse and continue toward your deal or resolution.

The key, when looking at Dawson’s definitions, is that an impasse is complete disagreement on one issue that is threatening the negotiation. Most negotiations, if not all, involve more than one issue, and with complex negotiations you’ll find issues within issues and multiple layers of issues all through the deal. It’s easy to become fixated on a single issue, and become so frustrated that you believe you are deadlocked, and then give up on the entire negotiation. You must recognize there are other issues, or if not, create them. Negotiations with only one issue are more easily looked at with a winner and a loser, with multiple issues, it is much simpler to reach win-win agreements that make both parties more satisfied.

The Stalemate is a bit different. Parties are not ready to quit yet, but the negotiations are sort of going in circles with no one making any progress toward cementing a deal, finding a solution, or resolving the problem. For stalemates, effective negotiators have strategies to help the negotiations move forward again. In a stalemate, both parties are still trying to find a solution. However, neither can see a way to move forward. The fear of stalemates is the frustrations they can cause, leading to parties believing they are at an impasse or worse, a deadlock.

Once you have defined these terms, it is easier to recognize what is happening during a negotiation. You will then be able to use strategies and tactics to overcome these roadblocks to successful deal making. First understand the problem, then work both toward solving and resolving it.