How to Negotiate a New Car Price

Probably the most uncomfortable and daunting part of new car buying is haggling with the salesperson over the price of your new car. Well, it doesn't have to be that bad or that scary. This article aims to make the process of negotiating a car price easier for you.

First, you should do your homework. You should know exactly which car you want, how much you want to pay for it and what the dealer's cost is.

• Start with determining which car model you want and what options it has. It is always cheaper to get a model with the options you want already on. Knowing the available options will prevent any dealer from offering you a car model without the particular options and charging you more for installing them afterwards.
• Next, you should find out what the dealer paid for the car so you would know how much you can negotiate down.
• You need to get the MSRP (Manufacturers Suggested Retail Price) for the car model you want, or also called the "sticker" price. The MSRP is what the manufacturer suggests as the car selling price. Your goal when negotiating is to try to get the biggest discount possible off that sticker price.
• Take advantage of online services which can help you locate the best possible car price of the model you are interested in. They will submit bids to multiple local dealers and thus you will provide yourself with different quotes. The more quotes you get, the better your chances of getting a good deal.

Now, it is time for the real negotiating. Here are some tips for you:

• You have already collected different price quotes from dealers, so when talking to the salesperson don't be afraid to mention what you can get from other dealers. Show that you are serious about buying a new car and that if the dealer you are talking to doesn't entice you, you have other offers to turn to.
• Try not to show your emotions and the things about the car purchase that excite or concern you the most. If the salespeople know what color you like or what you have hated in your old car, they will certainly try to use that to play on your emotions in order to sweeten the deal in their favor.
• During the negotiations, don't let the salesperson pressure you, intimidate you, or play on your sympathy in any way. And more importantly, don't fall for the "I'm insulted; it is already low!" lie when you ask the dealer to lower a quote.
• Be equally prepared to buy the car the minute you are offered a deal that suits you and to walk out of the dealership if you feel mistreated.

Negotiating a new car price is not a wasted effort since it will save you money. Remember that it will be all worth it in the end; you will have a new car at a lower cost. Keep this thought in mind if you ever have doubts whether negotiating with every car salesperson you talk to is the right thing to do.

The information on this site and the car loan calculators provided are intended only to assist you with your car loans decisions without providing any personal investment advice. Since we do not consider your personal financial situation, we cannot and do not guarantee that the information provided here will be applicable or accurate to you. We advise you to seek personalized professional advice regarding your personal situation.

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