Many car buyers are frustrated with the time-consuming process of going from lot to lot and negotiating with salespersons. Especially if you have to do so with little or no experience, haggling can become tedious and annoying.
Fortunately, there are ways to make the car-buying process easier and less stressful. One way is to shop at a dealership that offers no-haggle pricing for both new and used cars. While this can save some shoppers time, it can also lead to a higher price tag than at other dealerships.
Before you go shopping, research the prices of similar vehicles in your area and use these figures as a guide for how much you should bid on your vehicle. This will allow you to establish a realistic range for your vehicle and determine the wiggle room that you can negotiate down from the initial sales price.
Once you have established this range, be prepared to take the dealer’s initial offer and raise it a little at a time until you reach an agreement that works for both of you. Remember, though, that this is a lengthy negotiation process and you may need to leave the dealership if you’re not satisfied with your final result.
Be careful not to lose sight of the overall goal: a low purchase price and a fair deal on your trade-in or financing. Be sure to ask about any fees the dealership will charge you, such as destination, documentation and title, registration or finance fees.
The best way to begin a negotiation is to focus on the car price, and then shift to trade-in value and any other add-on purchases such as extended warranties. Then, you can begin negotiating the financing details.
For example, a dealership that wants to maximize their profit might agree to a lower car price if they can stretch out the loan repayment period or lower your monthly payment. This can be a risky strategy, as it could leave you in debt for longer than you intended and paying more interest.
Moreover, a salesperson might try to sell you other accessories or add-ons as well as financing. These add-ons often cost more than the car itself, so you should be careful to only ask about them when you have a good idea of what your trade-in value is.
When you’re negotiating, be sure to let the salesperson know that you are pre-approved for financing and are looking for a fair price on your purchase. This will help them know that you are serious about the transaction and are willing to work with them if they can get you to an acceptable price.
You might also want to ask the dealer to email you their competitive quotes, as this is an easy and effective way of obtaining a range of prices for your vehicle. Send the dealers a brief email that includes your name, the vehicle you’re interested in and what your ideal pricing range is.