It’s no secret that the car-buying process is overwhelming. There are many things you can do to ensure that you close that deal. Whether it’s old or new, negotiating the price will certainly help you save money on your car purchase. Here are some tips on how to negotiate car prices and get the best deal.
New or used, average car prices have skyrocketed to hit all-time highs. According to Statista, the average selling price of a new light vehicle is close to US$47,010 in 2023. So, if you are going to buy one, you need to tread carefully and know the ins and outs to get the best deal on the car price.
What you will read about
How to Get the Best Deal on a New Car
Are there shortcuts to getting the best deal on a new car? When you are thinking about buying a new car, there are some general things you need to keep in mind. For example, you need to consider your budget, the type of car, and its estimated usage. Here are the quick steps you need to follow to get the best deal on a new car.
How to negotiate the price of a new car
Set a budget and stick to it
The amount you intend to spend should be the amount you can afford to pay. The important thing is to stick to your budget. For example, look for cars that are within your reach. This will help you not to exceed the amount you can afford as a down payment or monthly installments .
Let your research guide you
Apart from finalizing your budget, what you need to do beforehand is your research. Firstly, regarding the model. Once you have decided on the model that will best suit your needs, you will need to shop around and find out the standard selling price. Accordingly, there may be local sales taxes that can affect the price and knowing this will give you an edge when negotiating the price.
Negotiating with multiple distributors
This can be done remotely. You can contact several suppliers by phone or email and thus get an idea of the price and whether it will be within your budget after taxes and other additional charges. Consequently, you will be able to compare the price list you have created and get the best deal on the new car.
Give room to negotiate
Always start at a price lower than what you would pay. This would give you room to get to the price you would pay. However, if you find it difficult and the dealer won’t come close to your budget, then you should walk away. Your research will certainly provide you with backup plans and you will surely find a better deal by negotiating elsewhere.
Pro TipUse the entire month to make your case, but negotiate towards the end of the month. This is mainly because dealers might have a target to meet and might be willing to negotiate favorably towards the end of the month. Similarly, you may find better deals when dealers are clearing out inventory. |
Similarly, taxes or registration fees or any amounts passed on to the government cannot be negotiated.
How to Negotiate the Price of a Used Car
When it comes to buying a used car, your priority should be to focus on the market first and make use of online resources. Secondly, you should research not only the market prices but also the dealers with old inventory, which will help you get a used car at lower prices.
- Use online platforms like Kelley Blue Book or Craigslist to gather information on prices, reviews, and potential problems.
- Use consumer reports for private sellers to highlight potential concerns and negotiate accordingly.
- Find similar vehicles in your area with comparable mileage and condition. Use this information to negotiate a lower price with the dealer.
- Getting pre-approved for a car loan indicates your financial strength and gives you an advantage when negotiating.
- Use online calculators to determine your affordable monthly payment and stick to your budget throughout the negotiation process.
Final Thoughts:
Apart from the steps mentioned above, there are many apps and other online portals that will help you overcome the trials of bargaining. It is also helpful to do proper research and find similar cars in the same price range in your locality if you are looking for a used car. Similarly, whether it is new or old, always keep in mind that the total cost of the car includes not only the price of the car but also the additional charges that you are entitled to pay.
