1.7 Choosing the best dealer

It helps to know your dealer!!

Smart buyers most often have four common qualities – they do thorough research, avoid impulsive buying, are very patient and are flexible on their choices. These traits come handy while dealing with your dealers.

If you know your opponent well, you are better equipped to handle him.

Not all dealers fit nicely into one category and you'll get many that overlap, but in general, you will encounter three types of dealers while shopping for a vehicle. To help you make a right choice, we provide below an insight into some of the major traits of these dealers:

Aggressive Dealer

They are the most common types.

They target customers to somehow attract them into their showroom and once you're there, they engage in high pressure tactics to convince you finalize deal with them.

Most commonly tactics used include:

· Bait and Switch - a sales tactic in which a customer is attracted by the promotions of a low-priced item (bait) but is then encouraged to buy a higher-priced one (switch).

. Four-square Method - is a negotiation technique that is designed to confuse car buyers by mixing the price of the car, down payment, trade-in value, and monthly payment into one sheet of paper. This technique is used to keep buyers attention on the monthly installments and downplay on other three aspects. As a smart buyer you must always discuss all four factors separately. --- https://youtu.be/1gtmij_uNuE

· Deposit Requestssomehow convince the prospective buyer for a deposit to ensure his commitment on purchase.

Bad Credit Dealer

They target customers with bad credit history as they can be easily manipulated and offer least resistance when it comes to price negotiation.

They are experts in arranging car finance at high-interest rates and thus generate profits.

They also focus on selling unnecessary add-on products and accessories.

Community Dealer

They are the best type of dealer, but can still rip you off.

They actually care about their reputation and character within the community and they try to build their business with repeat buyers.

They are able to lure customers into their straight forwardness and offer “no-haggle” pricing, which leads them to being less resistant when it comes to negotiating.

They make profits is in the trade-in, financing, and other add-ons they sell along with the cars.

Important facts about dealers:

Most of the dealers don’t make big margins by selling cars alone. However, there are more profits associated with Trade-Ins or used cars sales, financing, selling add-ons, after sales service and sales of parts etc.

Every dealer aims to sell cars as quickly as possible - to reduce inventory and other overhead costs and increase profits. That’s why you’ll notice them to be always under pressure to get the deal done as soon as possible.

Dealers have perfected their selling skills as they know the weakness of majority of the car shoppers are excessively focused on the price alone. As a result they usually allow deal to happen at smaller margins and make all possible efforts to trap in other profit making areas like the financing, your trade-in, accessories, paint protection, glass tinting, extended warranties, service contracts etc.

Buyers looking for finance are preferred by most of the dealers as compared to cash purchasers. It’s therefore recommended not to disclose your mode of purchase if it is cash.

As each car dealer operates on monthly sales targets, it is important to time your purchase near the month-end. You can expect a better deal from the dealer short by few units from their desired monthly targets. Beside main dealers in Abu Dhabi city you should also explore dealers located in Motor World – Shamkha area and discover surprising deals.

With the above inputs, you are now ready to make the right dealer choice and equipped for a better negotiation.