- Buying a used car
figure out needs for car
mileage, size, 4wd, cargo space, style
how much can you afford?
loans, cash, a.p., walkaway
look for cars
on-line, newspapers, dealers, bulletin boards
find book value
edmunds.com, kelly blue book, nada
see the car
Find out asking price, look carefully over, ask for service records, bring a friend,
test drive it
negotiate
Ask for best selling price, offer 10-20% below book value or asking price if that’s
lower
make increasingly smaller concessions
get an independent exam of car from a mechanic
if any repairs are needed, discount them from your offer
sleep on it - Buying a new car
same as used for needs and affordability
Research online, find dealer cost in consumer reports,
visit dealers just to look first
find sales, rebates, last years model inventory
Sell your old car privately if possible, negotiate new car price separately
Opening bid should be $200 below dealer cost (say “isn’t that what it cost you?”) Go no
higher than $500 over dealers cost (walkaway)
visit three dealers. Take your time.
decline extra cost items (rustproofing, undercoating etc)
finance: get three quotes from banks and ask dealer to match
don’t let dealer change price. Walkaway. - Negotiating a new job
don’t assume starting salary cannot be negotiated. It often is.
starting date, vacation, signing bonus, moving/relocation expenses
working hours, office space are all negotiable.
find comparable salaries for the job
know the company’s policies
Have an ap, walkaway and target salary. Your ap or opening should be 10-20% above
your target.
Agree on salary first, then add ons like benefits, tuition, profit sharing, matching 401k or
ira contributions - Negotiating a raise
research comparables
make a list of accomplishments
find out how others have received raises
have another job opportunity – batna (but don’t use it during talks)
try to find a neutral location
justify your value to the company
if refused – ask for what you need to do in the future
close the deal with a smile, handshake. If possible get it in writing - Buying a house
research. Online, mls listings, newspapers
decide on priorities. Schools, convenience to highways and work,
peace and quiet. Location, location, location.
Find a broker with a good reputation. Visit several. Find someone you have confidence
in
negotiate the agent’s commission (usually 6 % , ask for 5 % can’t hurt)
know what you can afford. (2.5 x annual household income)
apply for a loan before purchasing
set ap, walkaway and target prices
find comparables (batna)
tour the property
list what you don’t like or would have changed
find how long house has been on market and price drops
offer no more than 80% of asking price, wait for counter offer.
concede in smaller amounts (no more than 1-2% of asking price)
take cost of repairs into consideration.
agree on price, offer to purchase amount (usually $500-$1,000)
Agree on closing date (if this makes an expense for you, ask for discount on price)
agree on what stays (appliances, draperies etc. Adjust $ for furniture
After offer accepted, get an inspection (deposit must be refunded if no pass)
use the bank’s lawyer, but get good references
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