While getting behind the wheel of a new or used car can be a lot of fun, some people find the process of negotiating the price of a vehicle an overwhelming experience.
You can get the car you want without getting stressed out or blowing your budget with some preparation and persistence.
This guide will give you the information you need to negotiate car prices.
How to negotiate the best car deal
Be prepared
Getting a reasonable price on a new or used car starts weeks before you even go to a dealership.
The first step is finding the car you want that meets your needs and fits your budget. You’ll want to know everything you can about the vehicle you have your eye on.
When you start visiting dealerships, you’ll want to confidently focus on the vehicle you want, not the used or new car they want to sell you.
Find the deals
Know what financial options dealerships are offering on cars you’re considering.
A great way to save some money without negotiating is by taking advantage of special financing or cashback incentive.
Even if you are getting a deal, you’ll still want to try and negotiate for a better car price. Some salespeople will tell you that you can’t negotiate if you are getting an incentive from a dealership, but that’s not true in most cases.
Head to the dealership
Now that you have the information about the vehicle you want, it’s time to visit dealerships, both virtually (via their websites) and in person.
You’ll want to spare enough time to do test drives on the cars you consider and work with multiple dealers to get the best price.
Remember, it’s a business transaction
The more you keep your emotions in check, the better the deal you’re likely to get.
Though it’s easy to develop an emotional attachment to your dream car, it’s important to remember that buying a used or new car is simply a business transaction. The less emotion involved, the better.
You want to remain polite and cordial yet firm when dealing with the salesperson, the finance manager, or the website manager.
You need to have a firm budget that you’ll stick to, the confidence to advocate for yourself, and the information to back up the price you want to get.
Negotiate the price
Knowing negotiation tactics some dealerships use helps level the playing field.
Ask the salesperson what price they want for the car. This limits how much they can ask for because once the price is out, they can’t just simply raise the price. And as soon as you state a car price that you are willing to pay, you can’t negotiate any lower.
The salesperson has several tactics to get the dealerships’ best deal, making you pay even more.
One of those tactics is trying to wear you down by making you wait as the salesperson goes back and forth to their “manager” to discuss your deal. Politely explain that you have limited time, so if their repeated delays continue, you’ll have no choice but to leave.
Another one is asking you to sign the salesperson’s offers to their managers, but those documents are meaningless. They are just designed to mentally lock you into the agreement. The only documents that matter are those you’ll sign in the finance office.
Throughout the negotiation, keep a calculator out where it can be seen. So when any calculations need to be done, do them yourself so that you both understand the numbers and avoid the chance that the sales rep is trying to trick the price or you.
Important disclaimer: Most of these sleazy tactics are used by untrustworthy dealerships. Respectable dealerships like House of Cars will instead focus on working together with you. The difference is clear as day, and you’ll be able to recognize it immediately.
Now seal the deal and complete the transaction while protecting the deal you just negotiated.
The best financing offers
If you come to the table with a pre-approved car loan, you have an offer they have to beat to get your business. Without a competing financing offer, you'll be at the mercy of the dealership for whatever loan terms they want to offer.
If you don’t have a car loan, you must know your credit score. When you know about your credit history, you’ll know what kind of financing you deserve to get and can refuse any offers that are not appropriate.
If you need help or guidance in the financial department, just contact our experts at House of Cars! They will guide you through our financing options to get the best deal for you without stressing over the details.
In fact, we will work with you regardless of your credit score since we believe that everyone deserves to drive a vehicle that fits their needs.
House of Cars was voted as the number one dealership in Calgary, and if you are looking for used trucks or other vehicles for sale, this is the place for you.
Click here to find the best deal for used cars for sale in Alberta!
