With four drivers in our house you can be sure the HH and I know a thing or two about negotiating for a car. Here’s a couple of our favorite tips to take with you to the car lot to make sure you get the best deal possible:
- Remember the sticker price is just a sticker. It is not their rock bottom price. Think of it as a starting point.
- Do your research. Know the value and worth of the car you are looking at. Make sure to let the salesperson know you’ve done your research.
- Have your own top dollar amount and don’t let yourself get talked into more. They are in the business of selling cars, your tenacity will pay off…eventually.
- If you have a trade-in, remember there is wiggle room on that end too. If they can’t get the price of the car to what you want, tell them you want more for your trade-in.
- The salesman will ask you what monthly payment you are looking for. Do NOT answer this question. They can get your monthly payment by giving you a 45 year loan, and still charge you an arm and a leg for the car. Know how much you want to spend total and stick to it.
- Shop around. It gives you negotiating power to tell the salesman. S/He knows you are not committed to buying a car from him/her, but for getting the best price for the best value.
- Don’t be in a hurry. You don’t want to be forced to take a deal that wasn’t right. If the car you had your eye on sells before you are ready to buy it, another will come along. Grandma was right: patience is a virtue.
- When in doubt, walk out. If something seems shady, just leave. No biggie. Social etiquette does not apply to car shopping.
- If you are buying a used car from a private seller, remember: cash is king. Not having to wait for financing to go through, etc. will be extremely appealing to a seller.
- Don’t be afraid to ask the sales manager for a different salesman. Sometime people just don’t click. You won’t be able to come to a mutually beneficial deal if you don’t see eye to eye.
What strategies have you learned over the years?
~Mavis
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Anita says
Excellent tips Mavis! Thanks! 🙂
Charla Echlin says
All great advice Mavis! Having worked within the Automotive industry for over 18 years I would add that “Cash is King” whether you are buying from a private seller as you said, but also holds true when you buy from a dealership. You have way more control when you take the financing out of the equation. (Which is why you don’t want to be a “payment buyer”). And the total you pay for the “new” vehicle and the amount you get for your trade in are tied together (they just move money from one to the other) – much better to sell your car on your own and add that money to your cash- or if you can’t do that- wait until after you have a firm selling price to bring your trade into the mix (plus make sure you know your retail blue book price of your trade in).
sheila says
My hubs favorite activity! It’s like watching a cat play with a mouse. Popcorn worthy, really. Definitely do your homework before stepping into the dealership and look at the cars at different dealerships online. His fav trick (he’s got a bunch) is to print them all out (even include a few blank pages ) and put into a three ring binder. Flip through the binder during negotiations. Drives the salesman/woman crazy wondering what he has!
Diane says
Boy howdy, being willing to walk away (and STARTING to) can make a huge difference in the deal you get! My cousin got a fabulous deal on an expensive car because he DID walk away from the negotiations. The salesman called him and “enticed” him back with some pretty big concessions (which was exactly my cousin’s strategy). The cooler you are about the dealing, the more the salesperson will try to woo you. It’s just a dramatic little tango you have to do if you want to save potentially thousands of dollars.