How to Negotiate the Best Deal on a Car

Next to buying a house, buying a car is one of the most expensive purchase we ever make.  However, it is also one of the most confusing and bewildering transaction.  It is one time in your life when you will be pitted against professionals who are focused on separating you from as much of your money as they possibly can.  

The good news is that if you go into this process prepared with the correct strategy, you have a good chance of coming out of with a good deal.  For example – when I went with my son Matt went in to get Ford Escape, we ended up saving him $3,000.  How do we know that?  We found an invoice in the glove box from the previous owner.  A girl had bought the car 2 months earlier and had to return it because she couldn’t make the payments.  Her price tag – exactly $3,000 more than we paid.

Here is one tip that will help you get a deal – go in at the END of the month.  That is when the the window is closing for the big sales prizes and your salesman will be at maximum motivation to make a sale.  A rainy day is a good choice too – fewer customers equals a more attentive salesman

A few easy tips that will help save you hundreds on a car purchase.

Step 1 – Do your research first.

This is at least 50% of the job and with all the resources available on the Internet, there is no excuse for not being fully prepared.

First, you need to look at your situation and determine what model of car your family needs.  Think about what is most important to you.  Is it price, seating, style, safety?  Usually a combination of all these things.

Some sites you can use to do your research are – Bluebook.com, autotrader.com, consumer reports.  Try to focus on “meaty” options like airbags, durability, and reliability rather than “soft” options like color, type of seats (although I do LOVE a seat heater), and fancy trims.  I will drive the ugliest color in the world if it’s a good deal and a reliable car, but that’s not the priority for everyone else.  I am SO not kidding – I drive a bright orange Kia because it was a great deal.  It’s not a popular color, but it’s unique and very “me” so I get a ton of compliments on it.

Ideally, before you ever set foot on a dealer lot, you should have the following information in your back pocket:

The model and features you want

  • The range of prices for the vehicle – look at both dealers and private parties.  You may even do some private party test drives just to see what models may suit you.  Do not set foot on any dealer lot until you have finished your research.  That is where most people go wrong.  Take the time to do your research.  You may be generating hundreds of dollars per hour in savings for this time, so it could be very valuable.
  • Roughly how many of this model are available in your area.  This is very useful information.  If 3 other dealers in the same block have this model and you know how much they are charging for it, this helps a lot.
  • If you require a car that is very specific or unusual, understand that it limits your bargaining power.  Alternatively, if you are going for something very common you are in the “sweet spot” for bargaining.  There’s never going to be a shortage of blue or white minivans, for example.

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Comments

  1. Ahhh I wish I could negotiate. I did the best I could when I got my car a few years ago. I did pretty well, but I felt bad for getting the extended warranty! I’m not on the market for a new car yet, but I’ll have to remember not to mention any numbers! Dropping by from SITS!

  2. Stopping by from SITS Sharefest! I am getting ready to buy a new car in the next few months so this article is perfect!

  3. I worked in the dealership environment for years. Yes there are dealers out there that want you to part with your money and then there are dealers that want a little over time. Go with the ones that want a little over a long time. They want to build a relationship with you. I am not sure if you were talking about new or used cars in your piece. If you are purchasing a new car going at the end of the month is a good idea. For two reasons, if you have done your research you should know all of the factory incentives that are being offered. Those go away at the end of the month. New ones come out at the first of the month and there may not be any on the model you want. Also the salesman has a number of cars as does the dealership have a number of new cars that they want to sell per month. The factory will pick certain models and give the dealership an incentive to sell so many of them. The dealership does not have to give you any part of that money. But if they are one away of that model from hitting a 50,000 bonus and you want that last model they may give you some money to purchase it. They do have to give you all of the cash incentives by law. Also another good place to see how much for a new car is Truecar.com Here you can see your model and what people in your area paid for it. You can get a TrueCar price and the dealer will honor it. Before printing the certificate go in and ask the dealer if they will honor the truecar price and you will not need to do the certificate. When you hit a dealer with that certificate they have to pay a finders fee, save them some money and they will save you money… Be nice to your sales man, be a hard ass with the manager. They are paid the big bucks, not the sales man. Also the sales man will be your to go guy after the sale, you want someone on your side, not an enemy. Used cars are a whole different ball game, there is a lot of wiggle room, really do your home work for what you are looking for in year make and model and miles. This is where a dealership makes their sales money, it is not in new cars. They only usually make on a $35,000.00 new car about $1000.00 if that, a lot go out as mini deals making only $400.00 That is nothing compared to buying a pair of jeans at Kohls….. Great piece…. BTW I just bought tow new cars, and love them…. Visiting from SITSgirls ShareFest, great article.. LOVE IT!!!!

  4. I’m a little intimidated by dealerships…actually, I’ve never bought from one. My family prefers the strategy of buying cars through individual sellers rather than dealers because of the factor of not dealing with a trained salesman or the dealership markup. For that strategy, it is good if you or someone you know is skilled at inspecting the mechanical condition of the car and identifying any possible problems–my FIL is a mechanic, and most of the guys in my family have a pretty good history of working on their own cars so that gives us the confidence to buy from individuals–most recently my grandpa bought a 1997 Suburban in great shape, no rust, barely over 100,000 miles for $3,000. That was almost a year ago and that car’s been driven across the country and back with no problems, definitely a good buy!

  5. When we bought our first car, I did all the negotiating. My husband just sat back and watched. We went from dealership to dealership because no one would give me the price I wanted. I had done all the research. Finally at the last place, the salesman gave me his final price on the car we’d been discussing and I said thank you, and got up to walk out. He said “wait, what price do we need to be at for you to buy today?” I told him, he looked at me like I was nuts and said “why on earth are you bargaining so hard on a car at this level?” We were newly married and had no money. I replied that I’d done my research, and that someday we were going to be able to afford a nice car and I wanted to be able to negotiate well. The poor guy sighed, left and came back a few minutes later with my deal. So they didn’t make much, but they did make something and they sold a car. And I learned how to negotiate. I tell you though, my husband would have given in much sooner if he’d had his way…we spent a lot of time before we got the price I wanted!

Trackbacks

  1. […] be a long and challenging process.  I’ve talked about it a length in a previous post – How to Negotiate a Good Deal on a Car.  However, I now have a new resource to help you get the best deal.  My biggest tip was to do […]

  2. […] happen to be a crack negotiator, so I would teach him how to negotiate the deal (see my post on how to get a good deal on a car) with the car […]

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