How do you negotiate when buying a car?

Question

I'll be buying new car soon, and I have no idea on how to get a lower price on the car. Any ideas?

Answer 1

Preparation is the key to any successful negotiation. Find out what the dealer paid for the car you want to buy, what rebates he gets if he sells it, etc. Most dealers will sell a car below their invoice cost, but how much depends on manufacturer's incentives and various financing.

Unless you're paying in cash, negotiate the price of the car first, then negotiate the financing separately. You don't have to get the car loan from the dealer (or a bank). Negotiate trade-in separately (or sell your old car yourself and save more money).

Know your "walk-away" price before you go in. That's the maximum you're willing to pay.

Use up as much of the salesperson's time as you can. Talk to him/her about various models and options, go for a test ride, find out what cars they have on the lot. He'll be more likely to make a bad deal than write off the day as a loss. Try to buy your car at the end of the month, when they're anxious to get it off the lot and not pay to finance it for another month.

Answer 2

Mario is 100% correct! Ever notice when people in here complain that they have a problem with their car and can't take it back to the dealership. That's probably because they were a complete horse's **** in the negotiating process or they out witted themselves by refusing to pay their local dealer $500 more than the dealer that is an hour away. Wake up people!!! $500 more is only going to cost you an extra $10 per month. If $10 a month is going to make a difference to you, you are probably looking at the wrong car in the first place. Buy what you can afford in the first place and let the dealership make a profit and allow the saleman to provide a good life for his family too. Last time I checked, the mark up for a pair of jeans is considerably higher than that of a car. Today's Car Salesperson is there to offer great service as well as to make some money. Isn't that what everyone does when they go to work? I believed in giving people a fair deal, and great service in hope that they would send in their family and friends. I would think any salesperson today would be doing the same, other wise , what's the point?

Answer 3

Look at edmunds.com. They have a tutorial on car buying written by an ex car salesman.

1. If buying new, find out what the realistic price is that your should expect to pay.

2. Find out what your trade, if you have one, is realistically worth. Don't get emotional about your trade, bottom line is that a dealer will not give you more than bluebook (kbb.com) value for the car.

3. Try to get the dealer to negotiate the price of the new car. They will try and pull you into a discussion of what is the maximum payment you can afford.

4. Have an idea before you go in what the monthly charge will be based on what you believe the car you want will cost minus what your trade is worth.

5. Don't be in a hurry, if you can't strike a deal. Walk out.

6. Never act like you love the car, be non-committal/ho-hum like you can take it or leave it.

7. Be sure that you are negotiating for a specific car, don't let them bait/switch you to a demo car - unless you are okay with that.

Answer 4

first let me say this and get it out of the way.
you don't need to be cruel to the salesman. the deal you receive after the sale , like service help and customer assistance down the road with any problems you may or may not encounter are worth more than money can ever overcome.
so with that there are a few things you need to know.
1 if the car your looking at is in high demand, the deal is up to the delaer discretion. i.e. if he can get more from someone else he will.
2. if you try to go to the dealer with anattatude of i am not taking this for any more than invoice , that is fine but expect the years of ownership to not be the most pleasent.
3. if you are willing to neggotiate the transaction with the dealer like 1-5% over invoice then expect to be treated with respect and dignity.
4. we only expect a fair profit. the things you do in the finance office like extended service plans, gap ins, credt life and disability, paint and fabric protection etc. are up to you. if you dont see any value in them dont get them , however if you have kids,(they can and ussually spill things in the car) or if you plan on keeping it for a while and you income should you be out of work isnt going to be the same, then look into these items!
yes there is of corse a profit in them, but its usually insignifigant at best and also they are there to protect you long term. and even enhance your resale value.

long and short look at the deal on a monthly basis. not a full dollar amount.
it will rack your brain and unless you are a master mathematician with a nack for calculis it wont make much sence.

lets recap.
1 offer 1-5% over invoice (depending on the demand for the vehicle
2. be realistic with the salesman
3. treeat them the same way you want to be treated
4. remember the deal after the sale is all about being taken care of in the event you need help.
good luck!

p.s. edmunds cannot buy you the car. they also do not show the actual dealer cost after delivery fees and such so not the best idea.

ps as" kukus above" has said to get financing first that too is fine but remember the dealer deals with 15 sometimes 20+ different banks and can usually get you the same or better rates as all credit unions and sometimes just afraction hier wich will usually be insignifigant. but by all means see what you can get first then tell the dealer they will be easier to deal with that way and can do on the spot financing for you with little (like an hour or so) wait time as apposed to a day or two from your own bank or credit union.
again good luck

Answer 5

Do your research. Check Edmunds or other car sites.
If the model you want is a hot seller and there is a waiting list you'll pay a premium for it. If it's a slow seller / lots of inventory there will be room to negotiate. Don't finance through the dealer, get pre-approved from your bank or credit union first.
The dealer will sometimes give you a lower price on the car and rape you on financing. Work the deal as if you would be paying cash and get them to put the quote in writing. Good Luck.

Answer 6

Your dad is correct to a measure. MOST persons, and ALL purchasers rate a auto greater than they anticipate to get. My coverage is to readily ask a individual occasion if their rate is negotiable. If they are saying no, and the rate is appropriate, I pay it. About part to three/four of them slash the rate. With purchasers, I ask jokingly, what's the REAL rate adding the senior citizen reduction? They WILL scale back it, above all if you're jogging closer to your auto to go away.

Answer 7

Dont ever tell them what you want your payment to be-- this is how they get you. Also don't be afraid to tell them that you will pay 500$ over what they have into the vehicle-- this way they can pay their sales person and make a small profit. Another thing is find out how long the vehicle has been on the lot-- if it has been more than 30 days they will most likely be anxious to get rid of the vehicle and will usually make a good deal. If the vehicle is fresh on their lot they will probably want to sell it for what they are asking. Dont forget to find out the vehicle service history too-- you can ask them to print out the inspection- find out what is wrong and what was fixed.

Answer 8

Tell them that you are shopping and several dealers offered you the vehicle at Invoice. Most dealers will sell at invoice. Make sure you ask to see the invoice from the manufacturer.

Also, Don't buy any add on crap. This is where they make their most money. Also, come in with your own financing. Dealers mark up the interest rates on the loans.

For example, a dealer can get a buy rate from a bank for 6%. Then tell you the rate is 7.5% and the bank pays the dealer the other 1.5%.

YES this is legal.

Answer 9

i tell them what i will pay...if they say no , i walk away and never come back...i won't play games with some car salesmen