When You Pay Cash
Cash is still king. That’s as true today as it was fifty years ago, and if you have the money on hand to pay in cash, be it something small or a new home, you should definitely take advantage of it. Always inquire: “How much of a reduction can I get if I pay cash for this house, right now?” This is something buyers are not expecting, and it is incredibly tempting. Cash is a sure thing. Financing can fall through, interest rates fluctuate, but cash is cash. In stores, merchants pay fees for credit card transactions, so you could easily get a cash discount. However, don’t expect this discount when buying a car. Dealerships get big incentives for financing offers, and you take that away from them if you offer to pay cash. In fact, you may pay more if you pay cash, so don’t do that. You can always pay off the loan a week or two later.
When the Item is Broken, Scratched, or Dented
Why would you pay for a broken item at all? If it’s a superficial defect that you can live with and the product itself works just fine, ask for a discount. Stores are usually happy to oblige. Also, if you notice a huge dent on the fridge that was just delivered, but the dent won’t be seen or you don’t mind, ask for a discount. If the item is scratched or damaged but it doesn’t impair the function, and you are okay with it, ask for your discount. And if the item is completely broken, but you want to repair it yourself or need it for parts, ask for a big discount.
In all cases, you are doing the store a favor and they will be happy to negotiate a deal; this even goes for sellers on Craigslist or eBay.
When the Seller Is in a Hurry
If you ever encounter a “motivated seller” you know you’re about to get a discount. Motivated sellers are those who need to sell fast. Sometimes, they need money quickly. Whatever the reason, take advantage of this. Flea market sellers will offer discounts as they are packing up for the day, and so will people operating garage sales. Smile, ask for a discount, and you’ll usually get it.
When the Store Is Closing or Going Out of Business
When a store is closing its doors, it’s time to start haggling. A store that is going out of business presents problems for buyers, especially when it comes to buying things that may have warranty issues. For this reason, you should demand a discount. Ask for a discount, because they are ‘motivated’ Â to sell and that gives you bargaining power.