Tips on How to Handle Used Car Dealers

Let’s say you already have a car in mind you want to buy, but as soon as you arrive at the dealership lot the car salesman seems to be intent on selling you something else, a model that you would never even consider to own. Car dealers can be pesky, and most of us would like to know exactly how to handle used car dealers without having to throttle them! Some salesmen refuse to negotiate or lower their prices, no matter how questionable their pricing is. So, how exactly do you deal with them in a sticky situation? Here are some useful tips!

Know how much you can spend. For most used-car buyers, their choices are limited according to how much they can shell out for a car. This is okay. Don’t forget that budgeting for a car should also include maintenance and repair costs, and of course, fuel allowance. When you’ve come up with a price margin, you can check out consumer sites such as Edmunds.com to see current market prices for used cars. You can also browse through tradecarview.com’s used car stock list to see what cars you can buy with that amount. If you’re firm about your budget limit, the salesman will have no choice but to give in.

For those who are driven more by a specific vehicle need (such as “being able to seat seven persons”), you can do some Internet research to know what exactly what kinds of cars will meet your needs. Next, check out the dealerships’ websites and see their stocks up for sale, and if you see a car that fits your requirements that is also within your price range, call up the dealership and ask if that particular unit is still available. That way, you can avoid the sales talk and get down to business (do you ever wonder how other people knew about how to handle used car dealers who talk incessantly?). Knowing the market prices of the cars you’re interested in also gives you an edge when you negotiate prices later.

The third tip on how to handle used car dealers has something to do with haggling. As a general rule, you should always wait for the salesman to make his offer first. Don’t tell him about your budget limit just yet! The salesman may offer a lower or higher price than what was originally advertised, so be ready to haggle. Let the salesman offer his best quote and then you can take the lead by lowering the price. This way, you’ll have a better deal for the car.

The last tip if you are having a particularly difficult time negotiating with a salesman is to just walk away. If he seems to be wasting your time going around in circles about a deal, or offering additional options you’ve already said you don’t want, just walk away. Sometimes this act makes the salesman (or the manager, when he hears about it) change his mind, and give in to your offer. Indeed, one of the best tips on how to handle used car dealers is simply leaving the dealership for another—why go through all that stress when you can go to another, more cooperative company? Try buying from tradecarview instead—it’s Japan’s largest online network of used car dealers—and have a whole army of pre-owned cars right at your fingertips. No pesky sales talk too.

Driving Forces Automotive

bn-pn048_delphi_p_20160822183423The automotive sector is one of India’s largest and fastest growing manufacturing sectors. With a turnover of US$13 B, the automobile sector employs about 0.45 million people directly and 10 million people indirectly, including after-sales and servicing networks. This ranked India as the 11th largest passenger car producer in the world. In the category of motorcycles and scooters, India is ranked 1st and 2nd respectively. With India increasingly liberalizing its market place, many new joint ventures evolved, resulting in close to 2 dozen global auto manufacturers setting up shop in India

The auto component segment is equally robust, supplying the entire range of parts required by the domestic automobile industry and currently employs about 250,000 people. Although small by global standards, this segment is growing rapidly as a result of its low costs and rising quality. Sales turnover of parts is estimated to have reached US$8.7 B in 2004/05, 29% higher than the previous year. Noticeably, auto component manufacturers supply to two kinds of buyers – original equipment manufacturers (OEM) and the replacement market. Over 300 small and medium companies directly service the OEMs assembling vehicles in India. Downstream, close to 5,000 other micro firms are working for these Tier 1 suppliers, as well as for the replacement market

The sector can be segmented into 2. One is the automobile segment. The other is the auto parts segment. The key manufacturing areas for these 2 segments are well spread across the country.

The growth of India’s automotive sector is driven by the key forces below:

Import

Automotive related imports are largely in auto parts, accounting for a lion’s share of 85%. These imports will feed the manufacturing plants, producing vehicles for domestic market as well as export market.

As the demand from the domestic market increases with rising affluence, production will increase in tandem, hence requiring more imports of parts, especially those of higher precision which still cannot be done in India. Global players in India still need to import fairly large amount of auto parts for their automobile assembly as quality and technological standards of auto parts sourced from within India may not meet their high standards. The expected Increase in exports of India-made vehicles will also contribute to import growth of auto parts.

Export

Automotive related exports expanded rapidly in recent years. Automobile exports grew at a compound annual growth rate of 46% between 2001 and 2006. Export share of production increased from 3% in 2001 to 8% in 2006. The growth is boosted by these several factors such as India’s cost competitiveness in terms of labor and raw material; established manufacturing base; economies of scale due to domestic market; potential to harness global brand image of the parent company, as well as the global hub policy for small cars like Hyundai, Suzuki, etc

Most automotive exports go to developing countries in Asia, where inexpensive cars can find a market. Egypt, Kenya and Nigeria are important destinations for India’s automotive exports. More recently, as the quality and technology of India-made automobiles have improved and met stringent requirement of the international market, some cars have found buyers even in Western Europe.

Similarly for auto parts, exports have been growing at a compound annual growth rate of 25% over 2000-2005. Share of exports in total production increased to 18% in 2005 from 10% in 1997. Foreign carmakers in rich countries are increasingly turning to India for parts, as low costs, relatively good technology base and access to cheap raw material make India highly competitive in its auto parts exports.

The main export markets are the USA, Germany, Japan, Sweden, the UK and Italy. Asia, Africa and the Middle East together take up 44% of India’s auto part exports.

Regulatory/Government efforts

Government efforts and regulatory frameworks are also key driving forces to the automotive industry in India. Currently, 100% foreign direct investment in the automotive industry, with no mandatory minimum level of investment is allowed. No local tie up is necessary since the sector has already been fully de-licensed and deregulated. This provides a strong impetus for global auto players to set up shop in India. Further, excise duty and custom taxes have also been kept competitive in order to make participation in the automotive industry conducive

On top of these, an Automotive Mission Plan is also being drafted to develop the domestic sector, as well as the export market. It aims to develop India into a premier automotive hub. Moving forward, India targets to become one of the top 5 automotive economies
International Agreements

Trade/economic co-operation agreements between India and the region or other international markets will boost India’s exports of both automobile and parts to the region/international markets. Going forward, the potential agreements are: TVS Group’s plan to invest in Indonesia to manufacture 2-wheeler; FTA between India and ASEAN (negotiation in progress) would also offer opportunities for direct trade and investment between India and ASEAN countries; FTA with countries like China, Korea, Japan, Chile, etc