Purchasing a new vehicle from a dealership can be an exciting process. But for many, missing out on critical negotiation opportunities can keep you from saving big along the way. Today, we’ll go over some of the top five tips on how to haggle at the car dealer. Use these tips the next time you shop and see just home much you’ll be able to save!
1. Do Your Research Before Heading to the Car Dealer
Knowledge is power and knowing your stuff before you go into your local dealership can really help you snag some great savings. Whether you’re shopping new or used, it’s important to know the price of the vehicle you’re eying. This is easy to do by using tools like Kelley Blue Book.
If you’re shopping used, you’ll have lots more leverage to negotiate down the price because you can look at things like condition, mileage, cosmetics, and overall wear and tear. Knowing how much a vehicle is worth when it’s in a certain condition can really help you have a solid grounding to justify why the price needs to be lower.
2. Know Your Credit Score
Your credit score can be a great negotiating tool to help you get behind the wheel of a newer model at a more competitive interest rate. Putting down a hefty down payment can also help you negotiate that rate down.
When you’re financing a vehicle, a lender will pull your credit, so it’s important to know where you currently stand and just how much credit trustworthiness you can leverage. Dealers would much rather see that extra money go to them than towards higher interest payments, so use your credit trustworthiness to your advantage.
3. Finance With the Right Lender
While we’re on the topic of financing, it’s important to work with the right lender. Of course, you’ll always be able to take advantage of dealership financing options, but sometimes working with outside lenders is a better way to secure a more competitive rate.
If you really want to keep it in-house, you can always bring in a quoted rate from an outside lender and leverage that against the dealer to see if they can match the rate.
While we’re on the topic of rates, make sure you’re focusing on your overall interest rate instead of just your monthly payment when negotiating. Having a lower monthly payment does not always indicate you’re getting a better deal. Instead, try to look at your financing plan as a whole to determine how much money you’ll be saving in the long run.
4. Bring Along an Expert to the Car Dealer
It never hurts to bring along an expert when you’re shopping for a new vehicle. An expert can be anyone you trust including someone who’s already been through the financing process, someone who’s really good at understanding financing plans, or a mechanic who can help you identify issues with the vehicle which can eventually help you drive the price down further.
5. Know the Value of Your Trade-In
If you’re trading in your vehicle and using the value towards a new ride, then this is another critical time when you could be saving big. As with shopping for a new vehicle, knowing your used vehicle’s value allows you to negotiate a higher payout. Doing your research and knowing beforehand your vehicle’s worth will give you a solid standing during negotiations.
Bottom Line: If You Never Try, You Never Know
While these tips can certainly help you haggle down a more competitive price for your new or used car, they’re not totally foolproof. However, as the old adage goes, you miss 100% of the shots you don’t take.
As you try these tips at your local car dealer, remember to have fun as you test out what it means to negotiate. Once you do, try not to be shocked when a dealer actually plays along.
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