Around 15.2 million vehicles sold in the first quarter of 2020.
Are you one of the thousands of Americans looking at possibly buying a vehicle soon? If so, you’re likely dreading the process of negotiating the price.
As a buyer, you’re on uneven ground when it comes to haggling over the price of a vehicle. Professional car salespeople do hundreds of transactions every year. While you, as a buyer, likely only purchase a vehicle once every few years.
This guide will provide you with five tips on how to negotiate car price.
1. Do Your Research
Negotiating car price is a lot easier when you know beforehand the value of a car you’re interested in. Do the research and figure out what type of vehicle you’re most interested in. Find its current market value. Other factors you should also be aware of are any incentives you might qualify for, the trade-in value of your current car, and don’t forget to add in estimates for local sales tax and hidden fees.
2. Shop Around
When it comes to negotiating a car price, you’ll have an easier time if you shop a quoted price around at multiple dealerships. Call or visit other dealerships and get quotes from them on the vehicle you’re interested in.
Inform the dealer that you already have an offer. Many dealers will do their best to beat a competitor’s price. However, while speaking with other dealers, don’t give away upfront the quoted price you’ve been given. Instead, ask them for their best offer first. Then, if it’s too high, give them the figure you’ve been quoted elsewhere.
3. Get Pre-Approved Financing
Almost all dealerships offer financing during the car-buying process. The problem is that they only offer auto loans that make them the most money.
Avoid this problem by getting pre-approved for a car loan from an outside lender. Then, once you’re ready to buy a car with a dealership, they’ll be forced to try and beat the offer you already have with the other lender.
4. Shop at the Right Time
Car dealerships have goals they must meet monthly, quarterly, and even annually. While you are shopping around, try to find a dealership that hasn’t yet met its required benchmark. This tactic can help you with your car price negotiation, as the dealer will be driven to make a deal to secure the sale.
5. Be Ready to Walk Away
One of the best negotiation tactics you have in your pocket is the ability to say no. If you feel like you are getting a lousy deal, don’t be afraid to walk out. This is one of the greatest tools you can leverage against a dealer.
Let’s say you’re interested in Monster Cars and found a particular make you’re ready to buy. If you’ve tried all the other tips and the dealer is still quoting you a price you feel is too high, walk away. Tell them politely to get in touch with you if they find a way to get the price lower and leave your contact information. You might hear back in a matter of hours.
Anyone Can Learn How to Negotiate Car Price
Follow the tips provided and you’ll be fast on your way to learning how to negotiate car price. Remember to remain respectful and polite during the negotiation process. Don’t take a quoted price personally and remind yourself that this is just a business transaction.
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