Did you know that over 4.7 million cars were sold in the United States in 2019?
Negotiating the price of a car is a nightmare for most people. It is intimidating and filled with anxiety. There is a long list of things that most people would choose to do before they’d willingly choose to negotiate for a cheap car price.
The good news is that there is a lot of negotiating tips that you can use to make the process easier and more enjoyable while showing you how to save on a car.
Continue reading for nine great car negotiating tips for your next car purchase.
1. Knowledge Is Key
One of the great benefits of the internet is the vast amount of resources and knowledge that you have at your fingertips. You have more information about the vehicles you’re interested in and the process of buying a car than ever before.
It is a great way to determine and compare the value of different models of cars with different options and features. It is also a great way to learn about how to negotiate car price and the process behind it.
Another great benefit is that you don’t have to go to the bank to learn about your car financing options. You have the option of applying for financing options from banks and credit unions from the comfort and convenience of home.
One important thing that you’ll need to know is your credit score. There are places like Credit Karma that will let you see your credit score for free without harming it.
2. Keep Emotions in Check
The ultimate goal when it comes to how to negotiate is to get the lowest price possible for the car that you want. It is difficult to keep emotions out of the transaction when you’re negotiating for a car you really want.
Removing emotions from the equation prevents you from falling prey to a deal that favors the dealership and salesperson. You need to be ready to walk away from the table if you don’t get a fair price on the vehicle you want.
Another key tip is to not let the salesperson pressure you into buying. Be prepared for the salesperson to try a hard sell on you so that you’re not caught off guard.
3. Negotiate Separate Parts of the Transaction
As soon as you have the pricing information of the car you’re looking at, the negotiating begins. Unfortunately, dealerships like to negotiate on the price as a whole which might not be the most beneficial way to negotiate for you.
Taking this approach helps the dealership convince you that you’re getting a great deal while they make a hefty profit in other parts of the car transaction.
There is a risk that comes with negotiating a car’s price. This is especially true if you’re focused heavily on the monthly payments rather than the total price of the car.
The dealership might offer you a lower monthly payment but stretch the term over more years. This leaves you in debt longer and makes you much more susceptible to a buildup of interest on what you owe.
If the salesperson insists on negotiating on the entire transaction rather than separately it is important for you to be polite but firm in response. If that dealership is unwilling to work with you, there are others that will be.
4. Negotiate Out-the-Door Price
When you start negotiating on the price of the car, be sure to focus on the out-the-door price. This is the overall price that you’ll pay to drive the vehicle off the lot.
A good approach to take is to tell the dealership that you only want the out-the-door price with all of the taxes and fees included. If the dealership gives you a different amount than the one agreed upon you need to consider walking away.
5. Research Incentives
Some car dealerships and manufacturers offer incentives for you to purchase particular models of their cars. Keep an eye out for these incentives and if you find one that is active for the car you want, go negotiate on one.
If you choose to purchase a new car that has an incentive attached to it, be sure that the incentive is included in the final price of the vehicle.
Another type of incentive that dealerships like Gatesauto.com will offer is low interest rates. If you’re looking to purchase a car through financing then these incentives are very beneficial.
6. Payment Method Changes Price
Are you going to buy your new car in cash or through financing? Believe it or not, this impacts the price. Dealerships make an additional profit if you finance the vehicle.
If you pay in full or use outside financing, the dealership might be less willing to negotiate the price of the vehicle.
7. Check Out Multiple Dealerships
Don’t be afraid to use the inventory of other dealerships to your advantage. If you’re looking at buying a new car, reach out to other dealerships that have the car you want and get a quote.
You can use this quote as a way to drive down the price at the dealership near you that you want to purchase from. You can get the two dealerships to bid against each other and end up with a great price.
8. Negotiate Via Email
Negotiating through email is a great approach to take, especially if you’re negotiating with multiple dealerships. This way you have a paper trail with everything in writing.
Contact multiple dealerships and ask for their best price they can give you. It helps give you the best comparison of the offers possible. It also keeps emotion out of the process since it is not in person.
9. Timing Is Everything
Another thing to consider is that car dealerships work with monthly bonuses and commissions. A great approach to take is to go to negotiate for a new car at the end of the month.
You can use this to your advantage by negotiating a great deal since the salesperson will want to get the biggest bonus and commission possible.
If you’re interested in this method, be sure to have your financing in place before heading to the dealership to negotiate. This will make the process as quick and easy as possible and ensure a good deal.
Now You’re Ready To Use the Negotiating Tips
If you’re going to purchase a car then you’re going to most likely end up negotiating with a salesperson on the price. The best thing to do to give yourself a shot at a good deal is to seek out and use negotiating tips.
The best things to do are to do your research and keep your emotions out of the negotiations. Also, remember that timing is everything, and to keep an eye out for great incentives on price and interest rates.
For more lifestyle and business tips, be sure to check out our blog for other helpful articles that interest you.