Five Tips for Negotiating a Good Deal on a New Car

Five Tips for Negotiating a Good Deal on a New Car

Posted on Friday, November 18, 2016

Getting to yes can be simple if you do your homework.

New car prices aren’t set in stone. Many dealerships have wiggle room in the prices they offer you, you just have to know how to leverage it, and how to deal with attempts to get you to accept a deal that you may not want. If you want a good deal on a new car, remember these tips.

Know Your Price

Once you know what car you want, research its price. There’s a certain cost that dealers pay for a car, and needless to say, it’s rare a dealership is going to go below that price. Similarly, you should know what the average price is for the car you’re buying, as well as the price of any add-ons. You can also generally find the average price consumers pay for your car, and you should have that in your back pocket as well. From there, you can choose the rock-bottom price you’re willing to pay, as well as the top range you’re willing to pay.

Get Financing First

One of the key leverage points many dealerships have is that many people secure their financing through the dealership. But that’s not required to buy a car. In fact, while many dealerships do their best, they’re just one option, and rarely the best option in the first place, for financing a car. Securing your financing before you buy your car will give you a bit more leverage to drive the price down. After all, all the sales team has to do is meet you halfway and it’s money in the bank.

Comparison Shop

It’s rare that a dealership is the only game in town for the car you want to buy. You should visit several and ask around to see what bids you can get. Make it clear that you’re not committing to buying, just that you want to see what’s on offer before you decide where to buy. And make sure to get these quotes in writing, not verbally. Anything that’s not written down doesn’t exist, as far as consumers and business should be concerned.

Get the car you want at the price you want.

Make Decisions Beforehand

Another important step is decide exactly what you want in your car, down to the extras and the trim options. If that’s already locked in, and you already know what you want, then you can skip over a lot of the haggling that often defines car sales as you get pitched on various ideas. Make it clear you’ve done your research, you know what you want, and that the sales team doesn’t have to sell you on the car you want: You already know.

Hold Firm

Finally, all you have to do is present your rock bottom price to the sales team and see what they say. Usually they’ll try to bid you up or even flatly deny that price is acceptable, but stick to your guns. Ask them what price they view as fair, and if it falls under your ceiling, then it’s really just a matter of seeing if you can negotiate it down. Try to argue them to the middle of the range, and if their starting price is higher than a basic quote you got from another dealership, feel free to point that out. And remember, you can always walk away if you’re not happy.

Ready to find a car and put these tips to work? Click here to Click here to search new vehicles.