Whether you’re buying a new or used car, if there’s a price on it, it most likely can be negotiated. If this is your first time buying a vehicle, and you’re not sure just how to go about negotiating on price, keep reading for tips to getting the best deal possible.
How Do You Negotiate with a Car Dealer?
What’s the best way to go about negotiating a car price? There are four negotiating tips you should follow if you want to see the best outcome possible:
- Know the numbers – Check vehicle valuation sites such as NADAguides to see where the car’s price range typically falls. Using this information you can see whether or not the dealership is trying to sell you a vehicle priced higher than it should be.
- Be careful with your words – The best thing you can say to a dealer is “I’m ready to buy a car if we can agree on a price today.” That way they know you’re serious, and you come off as confident when negotiations begin.
- Start low – Referring back to the research you did on vehicle prices, start with the lowest price. It's easier to negotiate up than down.
- Keep to your word – Stand firm on negotiating just the price of the car. Don’t get caught up in additional items or adds the dealership tries to sell you.
Always remember that nothing is final until you sign the loan contract. If you and the dealer can’t agree, it’s okay to walk away and look elsewhere.
What Can and Can’t Be Negotiated?
Just because it’s part of the deal doesn’t always mean you can negotiate the price. It’s important you know just what can and can’t be negotiated before you walk into a dealership. Some fees and charges you can’t negotiate on are:
- State, county, and local taxes
- Registration fee
- Title fee
- Destination charge (new vehicle)
What can you negotiate on? Besides the car’s sticker price, you can negotiate additional costs such as:
- Interest rate
- Trade-in amount
- Documentation fees
- Extended warranties
The Bottom Line
Don’t be timid in the car buying process, and don’t be afraid to speak up. The numbers you see aren’t set in stone until you sign the loan contract. Ask questions, utilize the negotiating tips above, and use our Car Loan Estimator and Auto Monthly Payment Calculators if you want to feel prepared.
If you feel confident about getting a car, but fear your credit is holding you back from financing, let Auto Credit Express help. We work with a nationwide network of special finance dealers that are connected to lenders willing to help consumers dealing with credit issues, and we want to help connect you with a local dealership. To get started, simply fill out our free and secure auto loan request form.