Okay, so you’ve picked out the kind of car you want. Maybe you’ve even taken it for a test-drive. Now it’s up to you to negotiate a price that won’t break your back.
The greatest feeling you would have is driving your new car home and knowing you got it at a fair-enough price.
So, buckle up! I’m here to help you negotiate the best price on a car.
Read also: Facebook Marketplace – Top 5 Affordable Used Cars for Sale by Owner
How to Negotiate the Best Price on a Car
Whether you’re negotiating for a car or a new sofa, remember this: The person with the most information, the most patience and the most options is the person who usually wins. (Aka don’t be desperate and don’t be impulsive because the salesman can sniff that out like a dog looking for treats.)
But the key to a successful purchase starts even before you talk to someone face-to-face. Here’s how to negotiate and get the best deal on your next ride.
1. Do Your Research
Whether you’re walking into a dealership or meeting with a private seller, you should be armed with as much knowledge as possible on the specific car (or cars) you want to buy.
For example, if you decide you’re going to buy a Honda Civic, you need to learn everything you can about Honda Civics. That means you’re reading articles about the car, talking to people who drive them, and getting an idea of how much they’re worth.
2. Find Several Options to Choose From
Don’t just settle on one seller, guys. Check out several places to buy used cars—including dealerships and private sellers that have the kind of car you want. That way, you won’t feel boxed in to taking a bad deal. And the more offers you have to pick from, the more power you have to negotiate.
3. Don’t Shop in a Hurry
When you’re negotiating for a car, the worst thing you can do is go rushing in to make a deal. Car salesmen can sense your desperation, people!
4. Use Your Walk-Away Power
Have you ever gotten emotionally attached to a car during a test-drive? Maybe you’ve already picked out a name for it in your head. We’ve all been there.
But listen, don’t get too carried away with a car before you’ve signed on the dotted line.
5. Understand the Power of Cash
Hear me loud and clear: The best way to buy a car is with cash. If they ask about financing, I tell them, “I don’t speak finance. I don’t know the language. I only speak cash money!” But does cash really have the same power it used to? It may seem like we’re heading for a cashless society, but cash is still the most powerful negotiating tool!
6. Don’t Say Too Much
Negotiation and confrontation can make anyone nervous, and you know what many of us do when we’re nervous? We talk too much. Sometimes the best thing we can do during a negotiation is just shut up!
Simply say, “This price is too high” or “That’s more than I’m willing to spend.” Then be quiet and see how far the seller will talk himself down on the price. When you talk too much, you might end up giving away more than you bargained for, so let the seller do most of the talking.
7. Ask the Seller to Sweeten the Deal
The best negotiations are win-win deals. The buyer wins, the seller wins, and everybody wins! There’s a healthy give-and-take involved, and sometimes that goes beyond the price tag. If a seller doesn’t want to budge on a price, you can get a little creative and ask the seller to throw in something extra so you’ll agree to pay them what they want.
How to Save Money On a Car
Negotiating a car price can help you get the most bang for your buck. But there are some other things you can do—before and after you seal the deal—to save more money overall.
Choose Used Over New
So many folks want to pull up to work in the latest model. But with how fast new cars depreciate, you’re basically throwing money out the window. In fact, a new car loses about 9–11% of its value the moment you drive it off the lot—and it goes on to lose 60% of its value within five years!
The truth is, you get a better deal when you buy a used car than a new car.
Save Up for the Car You Want
Like I said before, the best way to buy a car is to pay cash for it. Not only does a car loan cost you big time in the long run, but having a car payment is also super stressful. Instead, you’ll get a better deal when you save up to pay for a car in full and up front. And that starts with a budget.
Get the Right Insurance
When you’re shopping around for a car, a lot of people forget to factor in one big expense: auto insurance. And if you’re upgrading to a newer model, you’ll probably see a bump in what you pay for coverage.
So, once you’re done negotiating for your new ride, you’ll want to connect with one of the trusted insurance pros.
