Car prices in Kenya have been rising for several years, making it difficult for many people to afford a new car. However, there are still ways to save money on a car purchase, especially if you are willing to negotiate with dealerships and sellers.
That said, negotiating car prices can be challenging, especially if you aren’t familiar with the process.
This can lead to frustration and financial strain, as you may end up paying more for a car than you can afford or miss out on a better deal.
Whether you're a first-time buyer or a seasoned negotiator, this guide will equip you with the knowledge and confidence to get the best deal possible on your car purchase.
Step 1: Determine the Market Value of the Vehicle
Before you start negotiating the price of a car, find out its market value. Your car’s market value is the price that the car would typically sell for in your local area.
Knowing the market value will help you determine a fair price for the car and give you a starting point for your negotiation.
You can use websites such as AutoCheck Africa, Cars45, and Magari Poa to determine the market value of your car.
These websites provide pricing information based on various factors and can help you determine a fair price for your desired car.
This information can help you negotiate a fair price with the seller and avoid overpaying for the car.
Read Also: Logbook Loans: Understanding Market Value Vs Forced Sale Value
Step 2: Negotiate for the Best Deal
Once you've done your research, it's time to negotiate. You can use several strategies to negotiate a car's price. Here are some examples:
- Start low: When negotiating, start with a low offer. This will allow you to negotiate and reach a lower price than the initial offer.
- Ask for extras: If the dealer doesn't lower the price, ask for extras like a free oil change or floor mats. These extras may be worth little but can add up over time.
- Walk away: If you're unhappy with the price, be prepared to walk away. This can show the dealer that you're serious about getting a good deal, and they may be more willing to negotiate.
Be assertive, confident, and respectful throughout the negotiation. Keep in mind that the goal is to reach a mutually beneficial agreement.
Read Also: How to Save Money and Get the Best Deal When Buying a Car.
Common Negotiation Pitfalls to Avoid
Negotiating can be tricky, and you should avoid the common pitfalls below;
- Focusing only on the monthly payment if you taking car financing: Many dealers may focus on the monthly payments rather than the car's overall price. This can lead to a higher total price in the long run.
- Rushing into a deal: Take your time deciding. Take the time to consider your options and make sure the deal is right for you.
- Falling for high-pressure sales tactics: Some dealers may use high-pressure sales tactics to get you to agree to a deal. Don't be swayed by these tactics; stick to your negotiation strategy.
- Not doing your research: As mentioned earlier, it's crucial to research the market value of the car you're interested in before negotiating. Please do so to avoid overpaying for the car and being disadvantaged during negotiations.
- Ignoring add-on costs: Add-ons like extended warranties or maintenance costs can significantly increase the car's total price, so make sure to factor them in when negotiating.
- Neglecting to negotiate the trade-in value: If you're trading in your old car, negotiate its value separately from the new car's price. Dealers may offer a low trade-in value to make up for a lower price on the new car, so negotiate both deals separately to get the best overall value.
Read Also: The 7 Hidden Costs of Car Ownership in Kenya.
Step 3: Close the Deal
Once you've reached a mutually beneficial agreement, close the deal. Here are some tips to remember when closing the deal.
- Review the contract: Before signing the contract, make sure to read through it carefully. Pay attention to the interest rate, loan terms, and any additional fees or charges if you’re getting car financing.
- Ask questions: Don't hesitate to ask the dealer if you have any questions about the contract or the car.
- Consider financing options: If you're financing the car through the dealer, understand the loan terms and the interest rate you'll be paying. You may also want to compare the financing options to ensure you get the best deal.
- Take a test drive: Before signing the contract, test the car on different types of roads and various driving conditions to get a good sense of its performance.
- Follow up with the dealer: After the deal is closed, follow up with the dealer if you have any questions or concerns. If you encounter any issues with the car, the dealer can help you resolve them.
Read Also: 10 Signs You Are Not Ready to be a Car Owner.
Negotiating the price of a car is an essential skill that can save you money and give you peace of mind.
By doing your research, being thorough in your preparation, and avoiding common negotiating mistakes, you can easily navigate the car-buying process and ensure that you're making an informed purchase.
So don't hesitate to put these steps into practice and negotiate like a pro to get the car you want at a price you can afford.
Read Also: The Process of Car Financing in Kenya.