Failsafing / Idiot Proofing

Mastering the Art of Negotiation; A Guide, for Turo Hosts on Acquiring New Cars from Dealerships

If you're a Turo host looking to expand your fleet knowing how to negotiate can make a difference when it comes to acquiring new vehicles from dealerships regardless of their size. Taking inspiration from Roger Fishers book "Getting to Yes " lets explore how you can apply negotiation principles to secure the deals while dealing with dealerships.

1. Treating People Separately from the Problem

When engaging in negotiations with car dealerships it's crucial to remember that you're dealing with individuals who're like yourself. To foster a relationship it is important to separate the people involved from any issues that may arise. Recognize that both parties share objectives, such as securing a car deal. Strive for an cooperative atmosphere during negotiations while avoiding confrontations.

Scenario: You're at a dealership negotiating for a new car for your Turo fleet. The salesperson mentions that they are under pressure to meet their monthly sales targets. Instead of exploiting their situation, acknowledge their challenge and express your desire to find a win-win solution. You can say, "I understand you have sales targets to meet, and I'm looking for a good deal to expand my Turo fleet. Let's work together to find a solution that benefits both of us."

2. Emphasizing Interests

Take the time to understand the interests and motivations, on both sides of the negotiation table.

Your Interests; What types of cars are you seeking? What are your budgetary limitations? How urgently do you require these vehicles for your Turo fleet?

Dealerships Interests; Dealerships are primarily focused on selling cars. They aim to move their inventory meet sales targets and establish a reputation.

Recognizing the interests of all parties involved is crucial, before starting negotiations. This will provide a understanding of what each party wants.

Scenario: You're interested in a specific car model that the dealership currently has in stock. During the negotiation, you ask the salesperson about their goals and find out that they are particularly motivated to sell the model you want. This insight into their interest could help you negotiate a better price or additional perks.

Step 3; Generating Options

Following Fishers advice it's important to explore options for reaching an agreement with the dealership. These options include;

1. Vehicle Selection; 

Stay open to considering makes and models. Sometimes specific vehicles might come with terms and conditions from the dealership.

2. Financing Options; 

Take the time to investigate financing deals and leasing options. Dealerships often have promotions or special offers that can benefit your Turo business.

3. Bulk Purchase; 

If you're in the market for cars inquire about volume discounts or any incentives available for buying in bulk.

By being creative with exploring these options you can potentially secure terms and deals.

Scenario: You're considering purchasing a new car for your Turo business, but the dealership's initial offer is higher than you expected. Instead of walking away, you propose alternative options, such as a lease with a buyout option at the end of the lease term. This way, you are offering an alternative path to meet both your needs and the dealership's desire to make a sale.

Step 4; Embrace Opportunities

Negotiations shouldn't solely focus on resistance. Saying "no" all the time. It's important to be open to saying "yes" whenever it makes sense. If the dealership presents terms or offers don't hesitate to embrace them. Approaching negotiations with an flexible mindset can lead to a fruitful process.

Scenario: While negotiating the price of a new car, the sales manager offers you an extended warranty at no additional cost. Even if you hadn't initially considered this, it can add value to your Turo fleet and save you money in the long run. By saying "yes" to the warranty, you demonstrate flexibility and accept a beneficial offer.

Step 5; Always Have a Backup Plan (BATNA)

Fishers principle of having a "BATNA" (Best Alternative to a Negotiated Agreement) is equally applicable for Turo hosts engaging in negotiations. It's essential to have a plan in case negotiations, with a particular dealership fall through.

This could involve exploring car dealerships considering owned vehicles or reassessing your timeline for expansion.

Scenario: You've been negotiating with a dealership for a specific car model, but they are unable to meet your budget. Your BATNA in this situation could be researching nearby dealerships that offer a similar vehicle or exploring used car options. This backup plan ensures that you're not entirely dependent on a single negotiation.

By having a strategy you alleviate the pressure to accept terms and maintain control over your negotiation process.

In summary "Getting to Yes" by Roger Fisher provides insights, for negotiations. As a Turo host looking to acquire cars from dealerships applying these principles can assist you in securing the deals and fostering positive relationships with dealers. Remember the importance of separating individuals from the issue at hand focusing on shared interests, generating options being open to saying "yes" when it's advantageous and always having a contingency plan. Happy. Best of luck, with expanding your Turo fleet!