Face it, negotiating with a car salesman can be intimidating, but being prepared and following these steps can help you get the best deal possible:
- Research: Start by researching the vehicle you’re interested in. Learn about its features, options, and the average price people are paying in your area. Websites like Kelley Blue Book, Edmunds, and TrueCar can provide valuable information.
- Set a budget: Determine how much you can afford to spend on a vehicle, considering factors like down payment, monthly payments, insurance, and maintenance costs.
- Pre-approved financing: Before visiting the dealership, secure pre-approved financing from a bank or credit union. This will give you more negotiating power and help you avoid high-interest dealer financing.
- Know the invoice price: Find out the invoice price of the vehicle, which is the price the dealer paid for it. This information can be found online and will give you an idea of the dealer’s profit margin, helping you determine a fair offer.
- Visit multiple dealerships: Don’t be afraid to shop around and visit multiple dealerships. This will help you get a feel for the market and compare prices to ensure you’re getting the best deal.
- Stay focused on the total price: When negotiating, keep the conversation focused on the total price of the vehicle, not the monthly payment. Salespeople may try to distract you with low monthly payments while extending the loan term or increasing the interest rate.
- Be prepared to walk away: If the negotiations aren’t going in your favor or you feel uncomfortable, be prepared to walk away from the deal. There are plenty of other dealerships and vehicles out there.
- Take your time: Don’t feel pressured to make a decision immediately. Take your time to think about the offer and consult with friends or family members if needed.
- Negotiate additional perks: Once you’ve agreed on a price, you can also negotiate for additional perks like free maintenance, accessories, or an extended warranty.
- Get everything in writing: Before signing any paperwork, make sure all agreed-upon terms are clearly outlined in writing. Review the contract carefully and ask questions if something is unclear.
To prepare for the conversation:
- Gather information: Compile all the research you’ve done on the vehicle, invoice price, and average selling price in your area.
- Practice negotiation skills: Role-play the negotiation process with a friend or family member to build confidence and prepare for potential scenarios.
- Prepare a list of questions: Write down any questions you have about the vehicle, financing, or the sales process to ensure you don’t forget to ask them during negotiations.
- Dress professionally: Dressing professionally can help create a positive first impression and signal that you’re a serious buyer.
- Stay calm and confident: Approach the negotiation process with a calm and confident demeanor. Remember, you have the power to walk away if the deal isn’t right for you.
Use these tips to get the ideal price on every car that you buy!