How to negotiate buying a car?

on May 05, 2022

You’ve made it to the final stage of buying a new car: the actual buying. If you’ve done your research, shopped around and test drive all your choices you’ll be in good standing to make a deal that suits you. Just follow these basic steps.

Play It Cool

If you look too excited the seller will know how much you want this car and play on your eagerness. Never let them know how bad you want this car. If this is a problem for you and you have a friend that’s pretty good at haggling there’s nothing wrong with them negotiating on your behalf, so long as you’re present. Just make sure it’s someone you trust.

Take Advantage Of Rebates

If you’re at the dealership and you did your research you’ll know what rebates you’re eligible for. You can even ask for extras such as sunroofs, different paint job, extended warranty etc. Why drive away with just the basics when you could get more thrown in?

They’re Not the Only Game in Town

You’ve shopped around, driven a number of cars and seen more than a few dealers or private sellers. Let them know this! You could always walk away and buy a car elsewhere, so they need to strike a deal you’re happy with. Make them work for it (don’t ever let them know they’re the only ones with the perfect car for you, even if it’s true).

Negotiate a Price, Not Repayments

Many dealerships will organise their own financial or use one that favours them, then negotiate with you based on weekly repayments. These repayments may seem appealing at first, then cost a lot more in the long run. So remember to negotiate the price of the car rather than the repayments.

This is why it’s a good idea to organise your finances in advance. By getting a pre-approved loan you’ll know what you can spend and what the repayments will be like, allowing you to get the car price down to something more reasonable.

Keep Your Vehicle Out of Sight.

If you’re buying from a dealership and planning on doing a trade-in, leave it until you’ve negotiated a firm price on the car – then negotiate the trade in. A dealership may offer a generous price on your trade-in vehicle simply to inflate the new car price.

Finally – Don’t Let Them Pressure You

Dealers and private sellers alike really want to make the sale today. They may say the car will sell if you walk away or that the price will go up when you come back. If they’re willing to offer that price today, they’ll be willing to do it again tomorrow. If you want the car then go ahead and buy. Just make sure you do it because you were ready, not because the dealer was being pushy.