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Ask Dave

Negotiating 101

Dallas is headed out to buy a car, and wants to know how to negotiate a good deal since he's got the cash.

QUESTION: Dallas’ car engine just went out and they want to buy another car with cash. They have no debt and $10,000 in an emergency fund. They have $16,000 on top of that. How does he use the cash to get a deal for a car?

ANSWER: Drive the car and feel good about it. When you are done, talk to your wife about it, and make sure you’ve done the research on the car before you go. You know what a deal looks like. If you are totally inept as a mechanic, then take a mechanic or someone who is knowledgeable with you. Until you are serious and about to make the offer, don’t tell anyone what’s in your pocket.

Once you are at the negotiation, and you hit the point where you are trying to push the seller down a little more, then pull the cash out. You’ll get a deal. Make sure to get signed documentation and a bill of sale, and you leave with that car.