Cars are big ticket purchases and can easily costs thousands. Buying a car from a dealer offers a degree of safety as dealer vehicles comes with a warranty and you can view dozens of makes and models in the same place. Even if you know exactly what you want and have a big wad of cash burning a hole in your pocket, it’s important to take the time to negotiate a good deal. Here’s how to do that.
Do Your Research
Before you even walk into a dealership, make sure you’ve done your homework. Decide on the make and model of car you want and research the typical price range. Look at dealership websites, online car valuation tools, and car classified ads to get a sense of reasonable prices. Narrow your search down to a few options in your ideal price bracket.
Look at available discounts, rebates, or new and used car finance deals offered by the dealer, so you know what to expect when you walk through the door.
Inspect the Car Thoroughly
Don’t let the dealer rush you into looking at numbers before you’ve had a chance to inspect the car. Test drive the car under varied conditions, listen for any odd noises, check all functions and features, and inspect both interior and exterior for any flaws. Consider bringing along someone knowledgeable about cars who can spot issues.
Point out any defects or wear and tear on the vehicle that could lower its value. But don’t reveal how much you love the car or how desperate you are to own that specific vehicle, as that gives away your negotiation leverage.
Haggle on the Vehicle Price
Now it’s time to negotiate the vehicle price. Many salespeople will start higher than the advertised price to leave room for negotiation. Don’t fall for tactics like “this price is only good today” – dealers want to move inventory quickly.
Point out any promotions, rebates, or financing offers from the manufacturer that apply to this model. Mention prices you’ve seen online for similar vehicles. Stand firm if the dealer won’t come close to your target price and be prepared to walk away. Consider making a lower counteroffer but avoid naming the exact lowest price you’ll accept.
Get the Financing and Extra Fees in Writing
Don’t assume you’ll qualify for 0% financing until the dealer has run your credit. Dealers make much of their profit through financing, so look out for added fees and interest rates above the advertised rate.
Require all financing terms, fees for things like documentation, registration, and insurance, and add-ons like extended warranties to be put in writing in your contract before signing. Scrutinise the contract to ensure no hidden costs were added at the last minute.
Drive Away in Your New Car
Buying a car from a dealership requires careful research, inspection of the specific vehicle, negotiating a reasonable price in your budget, and scrutinising all additional costs and fees. Approach the negotiation calmly and with confidence in your target price range. Avoid getting emotional or attached to a certain car. If the dealer won’t provide transparency on pricing and fees or negotiate in good faith, don’t be afraid to walk away and shop elsewhere.
With the right preparation, you can drive away with your dream car for a fair price.
