Buying a new car is a financial commitment lasting several years. As a result, thorough research and negotiating a fair price are both key to a successful sale. When shopping for a new car, consider these top 7 tips for negotiating the best price on a new car.
1. Look For Preapprovals First
Before you arrive at the car dealership, prepare your finances with a preapproval from a third party. For example, apply for a car loan from your bank or credit union. This preapproval provides you with a maximum amount and interest rate for bargaining purposes. As you walk into a dealer afterward, you already have financing ready to go.
2. Focus on the Car Price
Typically, dealers advertise monthly payments as their marketing strategy. Truthfully, it’s easier to picture a monthly payment as a budget reality compared to the car’s total cost. However, always negotiate with the car’s total price in mind. As a result, you can bring the main cost of the vehicle down while discussing interest rates afterward.
3. Consider Manufacturer Incentives
Most dealers work directly with vehicle manufacturers. Through this relationship, certain incentives arise for marketing purposes. Ask about these incentives when you’re at the dealer. From 0% financing to $1,000 cashback, these incentives can be great deals for buyers.
4. Research Vehicle Trim Levels
Refer back to your research for your car’s desired trim level. Inevitably, many models at a dealership will have high-end accessories. Be firm about which trim level is appropriate for your budget. In the end, the dealer may add a lot of accessories for a boost in profits, but you don’t have to buy them.
5. Don’t Feel Committed
Understandably, you’re excited about buying a new vehicle. However, don’t mentally commit to a car on the lot until you’ve driven off in it. By taking emotion out of the negotiations, you have the power to turn down an unreasonable offer. Indeed, you might walk right out of the office. Remember that there are other dealers with similar vehicles.
6. Discuss the Trade-In Vehicle After Agreeing on Price
There’s no connection between your trade-in’s value and the new car’s price, but it’s still a good idea to keep them separated during your conversations. Ideally, agree on the new car’s price before discussing the trade-in value, reports Consumer Reports. The dealer should respond with a fair amount, which might roughly match your researched amounts performed before your arrival.
7. Avoid Adding Dealer Options
Dealers often add options to the vehicle, which raises the price. Ideally, select or order a car without expensive options. Certain options you may want, such as a paint sealant, however. You can negotiate on any options, so be ready to haggle for those desired items.
Remember, you always have the power to leave a dealership if negotiations aren’t progressing. There’s no commitment on a vehicle until you sign on the dotted line. In the end, you have the power to purchase or wait on that dream car with these negotiation tactics.