How to negotiate the price of a car
You have set a file . I did your search and found a file that you are interested in purchasing. What now? It’s time to negotiate. conclude an agreement. Some might call it bargaining. But striving for the best price doesn’t have to lead to an uncomfortable, combative car buying experience. Making a strong case for the number you’re considering is your best chance of getting it.
Bring your research
If you were negotiating a house price or salary, you wouldn’t expect the person on the other side of the table to smile and agree to your number without looking to back it up. When it comes to buying a used car, the same rules apply.
Before you head to the auto dealer, find online pricing instructions from a reputable third party for the specific vehicle you wish to purchase – CarGurus appreciates (IMV) for almost every listing. Bring your research to the dealer and ask why the selling price is so much higher than the IMV. Don’t be surprised or argue if your dealership sales manager tells you that car buyers always spend more than the values found on the Internet. Just indicate a few similar cars in your area whose prices are closer to the number you have in mind.
If the dealer can’t explain the added value you get for the extra cost, you may want to move on – perhaps toward one of the other cars you’ve selected.
Ask a mechanic
Remember the analogy of buying a home? It also applies here. When you bid for a home, it is usually contingent upon an inspection conducted by an impartial third party professional. Why should buying a car be any different?
Just like walking isn’t enough for a home evaluation, a driving test will only help you assess your potential new car. To make sure the used car you’re considering is all that’s listed and that you’re getting a fair price for the condition, have an independent mechanic perform an inspection. Some inspectors even offer on-site mobile support that can be helpful during a negotiation.
Hiring a mechanic will let you know not only if anything needs fixing, but also how much it will cost. To increase the likelihood of the numbers being accurate, try to find a mechanic you know and trust or someone recommended by a friend. Depending on the estimated price of the repairs, the dealer may or may not be willing to give you a dollar-for-dollar discount for the work required. It certainly doesn’t hurt to ask.
If the dealer does not budge at all, or if the inspection reveals that the condition of the vehicle is much lower than the condition listed, be prepared to move on.
Another reason to look elsewhere? If the dealer tries to keep you away from the inspection in the first place.
Look beyond the selling price
Good news – the dealer agrees to your suggested car price! But this is not necessarily where the negotiation process ends. Other savings opportunities include Financing and add-ons.
When it comes to your exchange, the following tip should sound familiar. Don’t just do the research – show it to the salesperson, too. Use CarGurus A tool to estimate the fair trade value of your vehicle based on its make, model, year, and mileage compared to other similar vehicles in your area. If the number your dealer gives you is less than the value on CarGurus, feel free to ask for clarification. Keep in mind that getting a better price on your trade deal can also reduce your sales tax burden, so the effect goes beyond the invoice price.
Note that auto salespeople often like to negotiate the selling price of the vehicle you want to buy and the exchange rate at the same time. This can be confusing for shoppers. To make sure you’re not saving on one side of the trade only to lose on the other, tell the trader that you want to keep it simple and discuss your buying process independently of your trade.
Do you need financing? your personal page It may offer better terms, such as a lower interest rate. Auto loan offers can vary greatly depending on your credit score and down payment. Make sure you understand your financing options before you go to an agent.
If the dealer can’t quite hit your target price, but you really want the car, order the add-ons at no extra cost like Undercoating, oil change and free tuning or all-weather rubber mats can be an effective negotiating tactic.
On average, it takes about four hours to buy a car. The last thing you want to do is spend all that long at the dealership to come out empty-handed from the showroom. (Cakes and free coffee are nice, but not that great.)
However, it is important to be prepared to move forward if the car negotiations hit the wall. In fact, quietly walking away is often what it takes to get the conversation back on track.
On the other hand, if the dealer reaches your number or approaches you, you don’t want to get so caught up in negotiation mode that you don’t realize it’s time to shake hands and walk away convinced you got a great car deal.
It’s okay – even expected – to haggle over a car purchase. The auto dealer you work with knows you want a good price, just as you know the dealer needs to charge some prices to run a profitable business. Sharing the purchase price you hope to receive in advance gives the merchant a chance to offer the opposite – or they may agree to the lower price you suggest. Either way, it’s all part of the standard car shopping process, and it’s worth a little bit of back and forth so you can feel confident getting the lowest possible price for your new car.