Hate Haggling? Top Tips For Negotiating New Car Price

Finding the best price on a new car can be incredibly difficult and draining; however, you can employ negotiation strategies to secure a better price and save money on your new car purchase.��

In this guide, we'll share our effective negotiation tips and explore how you can improve your negotiation skills when buying a new car. 

Effective Negotiation Tips

Many new car buyers may be reticent to negotiate for a lower price when searching for a new vehicle. However, improving your negotiation skills can save hundreds of dollars on your purchase. Although it may seem intimidating at first, implementing the effective negotiation tips below will reward you with a sense of security that you've settled on the best prices. Let's analyze our seven tips for effective negotiation when purchasing a new vehicle. 

1. Do Your Homework

Buying a car and negotiating new car prices can be hectic, so do your homework on sites like Kelly Blue Book before you make any decisions.

Shop online and look at the cars you’re interested in, as well as their pricing and reviews. You need to know the numbers, so when you walk into that dealership and the salesperson tells you $27,000 for a $24,000 car, you can look them confidently in the eye and say "no."

While you’re at it, calculate the estimated fees and sales tax, and maybe do a little digging into the reviews of the dealership you plan to visit. You never know, but you could find some valuable information there. Negotiating new car prices might not be your forte, but you have the power if you come bearing knowledge.

2. Shop Around

There’s no rule saying you can’t shop around; that’s probably the best way to find the freshest deal! Keeping organized and writing down your comparative prices and incentives as you rotate through your options wouldn't be a bad idea.

This will also make it easier for you to tell dealers what other prices you’ve been given while negotiating, which might, in turn, provide you with an opening for lowering the price.

Dealers usually attempt to meet competitors’ pricing, so having a steel trap of knowledge will give you an edge. If you are buying a car and considering an auto loan, this process will prove beneficial in comparing lender terms and conditions.

Auto loans can be tricky, so including it in your graph when negotiating new car prices will allow you to discuss it knowledgeably.

3. Sell Your Old Car Yourself

If you sell your old car while getting your new one, you need to go to a site where you can evaluate the value of your current vehicle.

If you want to try to trade in your car while negotiating your new car price, then at the very least, you’ll know if you’re being swindled out of what you’re owed.

However, some websites like Mentalfloss have done research that indicates selling outright might be a better option. Dealerships might attempt to tack on extra costs during your negotiation through backend costs.

If you are adamant about trading in your car at the dealership, wait until the end of your price negotiation to mention that you intend to sell your old car.

At the end of your haggling, you’ll have most of the price estimates locked in, and it will be a little more difficult for the dealer to attempt to slide in anything substantial that will ruin the deals you’ve already made.

4. Get The Salesperson To Suggest A Price First

Try not to be the one who goes first while negotiating new car prices. It’s better to know your opponent’s thoughts before you reveal any of your own, and knowing where they intend to start is a good indication of what kind of person you’re dealing with and will start you out strong. You can't go any lower once you name a price yourself, but you can get the sales rep to do so!

5. Discuss Prices Remotely

Once you know what car you want and have visited a dealership to give it a test drive, negotiating remotely might not be a bad idea. You won’t have to worry about the anxiety that comes with face-to-face negotiation, and if at any time you dislike what you’re hearing, you can hang up.

Of course, whoever you’re talking to will try to get you to come in, but explain to them that you already have and know which car you want. The phone provides a buffer between you and the dealer, and the comfort of your home and being able to reference your numbers directly in front of you allows for a strong fortress in your battle for bargains.

6. Finalize Deals With Managers

Managers have the power in the places of purchases, so it’s no surprise that when negotiating new car prices, you should finalize everything with a manager.

Managers aren’t on commission, and if you negotiate at the end of the month, near the time they need to hit their quotas, then getting your purchase will be all the more critical for them.

7. Get Pre-Approved

If you’re taking out an auto loan, your best option before negotiating the price of your new car is to get pre-approved.
Pre-approval for your auto loan will provide you with a budget and a set expenditure goal that the dealership will likely attempt to match.

Implement These Negotiation Strategies Today!

So, if you plan on buying a car this year, remember what we’ve discussed here to negotiate your new car price best:

• Do your homework on the vehicle you want and the costs associated
• Consider your buying and selling options
• Auto loans are best addressed with pre-approval
• Please don’t name the price first, but let the manager name it last

However, if making a downpayment on your new car leaves you strapped for cash, a Mississippi payday loan from Missssippi Title Loans, Inc. will allow you the extra breathing room you need until your next payday. Fill out our online inquiry form to get emergency cash today!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.