Most people are not used to haggling in places where the price tags seem to be quite specific and final. However, at VinGurus, we can assure you that you have the right to negotiate the vehicle’s price. Whether you plan to buy a used car or a brand new one, you can arrange a discount. The key question is how to do it and when it is appropriate.
We have created a compilation of the best practical tips for negotiating car price rates for new and used vehicles. Read on to find out how to get the best deal!
Table of Contents
- How to Negotiate a New Car Price
- How to Negotiate About a Used Car Price
- Actionable Tips on How to Lower Car Price
- Summary of Haggling Car Prices
- Car Price Negotiation FAQ
How to Negotiate a New Car Price
Can I negotiate when buying a new car from the dealer? Of course, if you want to buy a car cheaper. However, the potential of getting a discount on a new car depends on a variety of factors. Even if you think that you are not subject to persuasion and various marketing tricks, remember that experienced salespeople can persuade most people to make a spontaneous purchase.
Many sales managers are experienced negotiators and know consumer psychology. Thus, to succeed in negotiating car price rates, you must understand the nuances of haggling for a new car. Read on to find our tips for negotiating your car price.
https://www.youtube.com/watch?v=BHgwd6YKWlU
Do Your Research
If you already have a car in mind that suits all your requirements, it is time to do some in-depth research. For example, if you wish to purchase an Audi A5, you have to know its characteristics that would suit your needs. Consider everything, from the transmission type to engine capacity.
Besides, it is essential to think about additional options before you begin negotiating. Do you need an entertainment system, leather seats, nitrogen-filled tires, cruise control, and other add-ons? Take a moment at home to calmly decide which additional features you really need to avoid thoughtless purchases at the car dealership.
Find Several Options to Choose From
If you are buying a new car, you need to know what the model’s recommended purchase price the manufacturer suggests and the average market price offered by dealers in your region. To do this, use the brand’s official website and various car sites, where you can find out the pricing for a new vehicle that interests you. By blindly trusting the dealership employees, you are taking unnecessary risks.
It is also advisable to visit at least 3-4 car dealerships to compare prices and purchase conditions for the same car. This way, you will protect yourself from overpayment.
Call and Write First
It is a wise practice to contact the chosen seller before visiting the dealership since it allows you to retrieve the information you need with a clear mind. Before negotiating, ask questions about the availability of the desired car model and its cost. It often happens that the models that you see on the website are not present at the showroom. Besides, some dealers choose not to notify clients about the promotions they can find online.
If the real conditions correspond to what you have studied on the site, you can safely go to the car dealership. If that is not the case, ask about the variant you saw online for further information.
Always Be Polite and Confident
The real haggling begins with a personal visit to the car dealership. Of course, sales managers are not eager to drop the price right away and risk losing profits. They may start by offering small accessories as a gift. If this does not impress the buyer, they may propose something weightier.
Confidence while negotiating is a significant advantage in the haggling process. It will demonstrate to the sales manager that you know what you want precisely. Besides, standing your ground will prevent you from agreeing to small discounts. Remember that it is essential to maintain calm until the deal is signed.
Don’t Shop in a Hurry
One of the main mistakes customers at dealerships make is allowing haste. Usually, clients want to quickly get the desired object at any cost, ignoring the possibility to negotiate their car pricing.
Thus, even if the selection process takes you a while, you should be patient. Purchasing a car is a big investment. Taking it slowly enables you to make a conscious choice and find the best deal available in your area.
Read Online Reviews
Checking reliable websites that offer real reviews is another way to find the best new car price deal. Read what people say about the car model you have chosen and carefully assess the pros and cons.
Besides this, check if there is any feedback available on the dealership you have chosen. If the majority of comments on the car and seller are positive, — congratulations, you might have found your perfect match! Remember that the more research you do, the less unforeseen factors you will encounter during your purchase.
Don’t Play Too Hard to Get
There is one more rule: it makes sense to bargain no more than half an hour. If during this time, the car dealership has not dropped the price, most likely, the haggling efforts are in vain.
It may happen that the dealer has already offered you a fair discount, but you keep insisting on negotiating more. Keep in mind that there is always a limit to the price decrease, so do not push it too aggressively. Sometimes, it may be difficult to draw the line while negotiating. Nevertheless, try to focus on your own rational estimates. If they are fulfilled, it is not worth extending the bargaining process for long.
Don’t Forget Car Insurance Costs
When you buy a new car, you will undoubtedly be offered insurance. Some dealerships offer their insurance services at the highest price rate. Thus, saving on the car cost can compensate for the sum with the insurance coverage payment. When purchasing a car, remember that the car dealer cannot oblige you to take on additional insurance liabilities. Those are subject to your consent.
However, some dealerships have beneficial insurance offers. Ensure you know the rates in your state to get a good deal. The average price of car insurance is $1,548 per year or approximately $129 per month, but insurance quotes differ depending on various factors. Get an estimate of your insurance costs here.
Secure Your Own Financing if You Can
Buying a new car without bank loans is the most economical way of making a purchase. Although not many people have the funds to buy a new vehicle in one go, it is worth trying to cover as much of the initial sum as possible.
As for the loans, you can try to get one in your local credit union to avoid negotiation at the dealership’s finance office. However, if you are willing to get a 0% interest rate offer, you would need to bargain with the finance person. Remain calm and polite, and do not fall under the pressure of accepting unnecessary add-ons for your new vehicle.
Use Your “Walk-Away Power”
As dramatic as it may sound, if you do not reach a compromise after negotiating with the dealership, you can say that you had a better offer at a different car showroom. Use this trick carefully since you may be losing a good opportunity in the case of bluffing. Nevertheless, most companies value their clients and would most likely try to keep you interested with an offer of a better deal.
If you do not want to be too radical, you can always say that you need time to think about the offer and take a time-out to assess the negotiation results at home without pressure.
How to Negotiate About a Used Car Price
If, regardless of the discount potential, a new car does not meet your requirements and budget, getting a used vehicle is a great option. For the sake of negotiating used car price rates, you will need to do a lot of research on the state of the vehicle of interest. Besides, unlike when buying brand new cars from dealers, you have to be alert to ensure the vehicle you choose is safe to drive. Read on to find out all you need to know about choosing a used car and arranging a good bargain.
Get the History
Buying a car requires a responsible approach. But you should be especially careful when purchasing a used car. A car sold in the secondary market may be fraught with damages that may not be noticeable at first sight.
Whatever the ad says, you can stumble upon a vehicle with hidden malfunctions or with a case of theft. That is why it is crucial not to trust the seller blindly and check the car’s history. Use our free VinDecoder service to retrieve reliable information on any vehicle. This way, you will find out critical characteristics, such as the car’s list of previous owners, manufacturing year, whether it has a branded title, and more.
Know a Used Car’s Value
Before you bargain with the seller, determine the actual market price of the car. First, go through all the ads for this model. Keep in mind that in most cases, they are overpriced by 10-20%, and it is probably not the actual price you will pay for the vehicle.
Besides, understanding the average market cost will allow you to assess the market situation and minimize the risk of being deceived. Check the price evaluation of the desired vehicles on websites, such as Kelley Blue Book or CarGurus.
Know What’s a Good Price
Limit your searches to two or three models. This approach will narrow your search, save you time, and help resist impulsive purchases. Moreover, the limited choice of models will make it possible to study their nuances, including maintenance costs.
Try not to exceed 90% of the planned budget, leaving some money for repairs and other possible expenses. There is almost always something that needs fixing in used vehicles, even if the car is only a year old.
Make the Right Opening Offer
An ideal strategy when making an opening offer for a used car through a dealer is showing that you are a knowledgeable buyer. You can start the conversation by mentioning that you have done some market research about this car’s prices and inquire if there is a discount opportunity. If the seller is willing to negotiate your car pricing, you can submit your first offer. To do this, you need to know such cars’ market price and offer a reasonably lower value.
However, if you are negotiating with a private individual, try a more personal approach. Asking about the seller’s “best price” offer is a perfect place to start. If the person is willing to make a bargain, you will receive a lower price offer. Then, you can submit an even lower counteroffer.
Make a Counteroffer
The counteroffer depends on how the previous step went. Here, you have to analyze the seller’s behavior to understand whether the negotiation is worth continuing. If the seller offers a ridiculously high price, you might want to make it clear that it is too much and start backing out, hoping for a better offer. “Thank you for your reply! Unfortunately, it does not fit my budget! However, I am still interested in the car you’re offering, so let me know if anything changes.”
If the car owner made a reasonable offer within the average market range price but still higher than you want it to be, keep going. Slowly start raising your opening offer by small increments. Let’s say you started with $30,000, and the seller is hoping to receive $35,000. You can say: “Thank you for your willingness to negotiate! Please, consider my offer of $30,500.”
Don’t Push the Price Too Far
You can bargain at any stage of the negotiation. Remember that your price offers should be reasonable. Respect the seller and do not try to set a good vehicle’s value too low.
You can as much as it would suit you as a buyer, based on your financial capabilities, a comparative analysis of prices for similar cars, and the state of the vehicle. Besides, it is always useful to provide argumentation for why you are asking for a discount. Trying to bring the price down gradually is more effective than requesting a 30% discount all at once.
Always Inspect the Car
So, you have found a used car, and its owner claims it is in perfect condition. Never trust the seller, as he may not know the vehicle’s history or could be trying to hide its unpleasant details.
Either way, it is vital to let a mechanic inspect it. If a professional discovers flaws, each of them should become an argument in bargaining with the seller. However, remember that safety is your primary concern. Serious defects are a reason to refuse to purchase the vehicle. It will also save your time, nerves, and money with its future maintenance.
Go on a Test Drive
The used car market deserves special attention since every vehicle has a certain set of qualities that are not manifested in the first years of its operation. Therefore, when a car enthusiast asks how to choose a used car, it is most advisable to do a test drive to understand which issues it has and what requires instant fixing.
A test drive is one of the most crucial stages in the process of buying a used car and can reveal reasons for further negotiating used car price rates. Remember that if any aspect of such a test drive makes you feel uncomfortable, consider finding a different vehicle option.
Take Care of the Trade-in
If you are willing to trade-in a used car, make sure it is suitable for this purpose. The vehicle must be in good working condition and without severe damage. Avoid such branded titles as:
- Water Damage
- Odometer Rollback
- Salvage
Besides, the vehicle should have all the documentation in order and be registered in the US. Check state-specific and internal dealer regulations for more information.
Keep in mind that the dealership will accept a trade-in car at a slightly lower rate than if you would be selling it yourself.
Actionable Tips on How to Lower Car Price
We have collected some essential questions to ask the seller. If any of the seller’s replies to your queries do not satisfy you, try to negotiate your car pricing or consider searching for other car options. Here are some perfect questions to ask:
- Are you the first owner of the car?
- What is the car’s manufacturing year?
- How was the car operated?
- Where was the vehicle serviced?
- Was the car in an accident? If so, in which ones?
- Does the vehicle have a branded title?
- What kind of repair work was done?
- Does the vehicle have any functional defects?
Be sure to ask the seller for the vehicle’s VIN to verify the answers provided. Ask if there is a second set of tires. Look carefully at the car’s body, visually check the compliance of the car’s condition with the odometer status. Ask the seller as many questions as you need, clarify any little things that seem dubious to you. Be sure to invite an inspector or go to an independent car service and check the honesty of the seller’s answers.
Summary of Haggling Car Prices
When planning a trip to a car dealership or to meet up with a private seller, remember: they are inclined to meet you halfway and drop the price since profit depends on you. There is always a possibility to negotiate your car pricing, and with the use of the provided tips, you have all the tools to succeed.
Car Price Negotiation FAQ
How do you ask for a lower price?
You can ask for a lower price for both new and used cars. Be calm and polite, and make sure you know what you want precisely. Do not hesitate to take the initiative and make the first price offer.
Сan you negotiate your car price with dealers?
Yes, you can bargain for a new vehicle’s price. When it comes to haggling at a dealership, keep your mind clear, and do not agree on useless add-ons.
Сan you negotiate your car price after lease?
It is possible. The majority of leasing agreements have an estimated buyout price in the contract. Besides, you can try to negotiate even a better deal.
Is it true that you can get the best deal on a new car when you speak with a fleet manager?
Fleet managers often deal with greater sales volumes. Due to this, a dealership may refuse retail customers to contact fleet managers directly. However, if you manage to, you are likely to receive a good deal.
Do dealers prefer cash or financing?
Dealers prefer financing because they can make a profit on the loan. That is why it is not advisable to tell them if you are paying in cash until the price negotiation is settled.