Tips to successfully haggle at a car dealership

[victorce]

I'm going to need to get a new car in the next few months. by "new" I mean new for me, not an actual new car, but I am a little scared and intimidated going to a dealership to try and get one at a fair price. I've never haggled before and I'm not sure I can do a good job at it. On the other hand, I don't want to pay more than I have to for a car. What haggling tips do you have for a novice looking to buy a car?

[Mesem]

Here's a tip: don't show neediness.

[neatdesign]

Back in 1999, my husband and I needed to buy a new car (our first) and I found the most amazing website that walked you through how to haggle to get a great deal. It was written by a former car salesman and his advice was solid and effective. Unfortunately I have no idea what that website is now, or whether it's even still online. However, I do remember some of the tips that worked for us:

- Before we went to any dealerships, we'd already decided what kind of car we wanted and what our must-haves were: Honda Civic, white or silver color, 4-door, automatic, remote key access, FM radio/CD player (not standard back then!), etc. Knowing all this in advance meant that there would be very little "shopping" involved and just a matter of getting what we wanted for the price we wanted to pay.

- We already had financing arranged before we headed to the dealership. This way we didn't have to feel pressured by the dealer to pay more than we wanted to.

- We did NOT tell the dealer that we already had financing or how much we were willing to pay. This is because we didn't want him to steer us into something different or more expensive. Instead we just changed the subject and stayed vague about our finances.

- We took a notebook and pen with us to jot down our questions and the answers provided by the dealer. We got the salesman's name, and if he said that he'd throw in a freebie (like extra detailing on the exterior), we wrote that down.

- We deliberately looked at this as a business transaction more than anything else. In other words, our attitude was "This is what we want. What can you do for us?" rather than "We are so excited about buying a new car, we'll look at anything!"

- This was probably the best tip I remember taking from that website: Once the salesman offered a great deal we said, "Okay, can you put that in writing? [He did.] We're going to visit another dealership to see what they have to offer; we might be back depending on what they say." Let me tell you, that salesman was literally RUNNING after us, offering to throw in a bunch of freebies (totaling around $2,000) because he didn't want us to walk off the lot without buying a car first. We got him to put THOSE freebie offers in writing too, but we still left. We went to Olive Garden, had a long, leisurely lunch, then went back to the dealership and accepted their final offer. We ended up getting the car for about $3,000 less than the sticker price.

Note that this was OUR experience at that specific dealership. Other people may have different experiences. But this is what worked for us.

Also, Google is your friend. There are tons of articles about this online.

[kevin123]

If you aren't comfortable, you can go through one of the many buying services that are out there these days. Costco and AAA both have them. It won't get you the bottom price, but it will get you a good price (better than if you just walked in yourself) and it's a lot less stressful because there is no haggling.

[feh]

In this day and age, I wouldn't even bother. Determine what car you want and email several dealers within driving range. Ask for their best price. Except for the test drive and signing of paperwork, it can all be done electronically.

Get your own financing and don't trade your current car in as part of the deal.

[Wino]

The most important tip is to be willing to walk away and not get the car. If you have your heart set on a car, it will be noticed and your bargaining position will be zero.

[ua_guy]

I think "negotiate" is a better word than "haggle."

My best advice is to know what you are going to buy before even setting foot in the door. Then, if you are new/uncertain, take someone with you who has successfully negotiated car deals before. At the very least, take someone with you who is uninterested in the transaction, but will be there to watch out for your best interests and call foul when appropriate (a friend).

You have to know your budget. Make sure you leave enough room for tax, title, licensing fees as they apply in your city/state. You need to understand vehicle financing if you intend to finance. That also means knowing your credit score, and what you already qualify for through your own financial institutions before you have a dealer try to secure financing for you. Use your own financing in the negotiation to see if they can best the rate, terms, or incentives.

If you can, and I know this is tougher for non-automobile enthusiasts, but try to figure the exact year/make/model of car you want and specifically shop for it. Dealers are absolutely there to SELL you something; but that isn't wise to allow them to "sell" you on something, as you may have no idea what it's actually worth, or who might be selling it cheaper. If you want to test drive and kick tires, that's fine, but DO NOT BUY the same day, until you've done your research and cross-shopped.

There can be good profit margins in used cars. Don't be afraid to make an offer or point out things that aren't in good condition, that should warrant a discount. Your goal is to get the car as cheaply as possible, and the dealer's goal is to sell the car for as much as possible. There's a middle ground. Don't take it personally if you can't reach an agreement--thank them for their time, and walk away. There will always be another car, another deal.

[elessar78]

It's a negotiation. Do some research and read up on how to negotiate.

Do more research on the car you are buying and have a very good idea on what a particular make/model/mileage should cost. Search around on the internet and see how much similar cars are going for.

You'll never pay more for a car if you don't let yourself. Have a magic number in mind, which is your "pull the trigger price". I give myself a range as opposed to a specific dollar amount. The width of that range depends on your budget.

"Name brand" dealerships can be reliable but perform your due diligence. Don't let fear of losing a car to another buyer force you into a decision. I'd suggest having a trusted friend or pay a mechanic to inspect the car you're going to buy, particularly if it's from a used car lot. People put a lot of blind faith in the CARFAX but it's not a fool proof history of the car. Barring that, pull the transmission fluid stick and smell and check the color (it should look like new transmission fluid and not have any burned out smell to it). Get under the car and check for rust. Nothing will kill a car like rust.

Do some detective work. When I was looking at minivans, I pulled the CARFAX on one too see where it had been serviced. I called the dealership that was listed on the maintenance reports and, although a bit sneaky, I asked if they'd performed any of the required maintenance (timing belt, etc).

I like to talk to people outside of the environment that we'd normally interact and what I've found from car salesmen is that they make larger margins on used cars than new, they're willing to take less margin to move cars out of the lot (it's more about turnover).

Be patient. I go to the lot with months to make a decision. I know which car I want and I watch if it gets sold or not. They want to move cars off their lot, so ones that outstay their welcome they'll be willing to deal. There's an adage in retail that an object "must out sell it's space." Dealerships have limited space in their lots. If a car isn't selling, it's holding up valuable room for a car that could be.

[ua_guy]

One more thing... All we've talked is about buying a vehicle at a dealership. I wouldn't pass up a private party sale.

You should run the VIN through carfax if you're interested. If they still do unlimited accounts, it's well worth the investment.

The best case scenario are those people who are weak at negotiating and for whatever personal financial reasons NEED to sell a good vehicle.

When I've purchased used cars private-party, I'd usually line up several within close geographical distance and try to see them all in the same day or same weekend, calling to set up an appointment with the owner in advance. I never talk price until I've seen and driven the car, and I always take someone with me. That's important, especially if the car is located on some creepy @ss piece of property, or if the owner is a creep. That bystander is also helpful to engage the owner while I check out the car, or just be there to hold stuff, take notes or a picture, or whatever.

[elessar78]

One more thing... All we've talked is about buying a vehicle at a dealership. I wouldn't pass up a private party sale.

You should run the VIN through carfax if you're interested. If they still do unlimited accounts, it's well worth the investment.

The best case scenario are those people who are weak at negotiating and for whatever personal financial reasons NEED to sell a good vehicle.

When I've purchased used cars private-party, I'd usually line up several within close geographical distance and try to see them all in the same day or same weekend, calling to set up an appointment with the owner in advance. I never talk price until I've seen and driven the car, and I always take someone with me. That's important, especially if the car is located on some creepy @ss piece of property, or if the owner is a creep. That bystander is also helpful to engage the owner while I check out the car, or just be there to hold stuff, take notes or a picture, or whatever.

I agree, Private party sellers tend to be poor negotiators BUT that kind of works against the buyer because they tend to price at only their sale price, no room for negotiation.

When I sold my car on autotrader, I tried to create an environment where my buyer would feel safe. I met them at a bank at daytime. Very public place, they could get their cash/cashier's check right there. Try to see if the seller will deal with you in a place you feel safe.

[JoeP]

Back in 1999, my husband and I needed to buy a new car (our first) and I found the most amazing website that walked you through how to haggle to get a great deal. It was written by a former car salesman and his advice was solid and effective. Unfortunately I have no idea what that website is now, or whether it's even still online.

Might you be thinking of Confessions of a Car Salesman?

[elessar78]

In 2001 I bought a new car using Yahoo! Autos. Basically I put in my specs and several dealers gave me their offers (this was for a new car) and I could make them bid against each other without leaving my home. They don't seem to do that anymore, sadly.

[bjl584]

Ask for extras. Floor mats, mud flaps, upgraded radio, etc.

Ask for a final total price not a monthly payment.

Wait till late in the month to buy when the sales people are trying to hit their numbers

Don't ask desperate. Put on your poker face.

Shop around. Don't settle on the first thing that comes along.

Don't trade your car. Sell it outright if possible.

[Deteria]

All you have to keep in the back of your mind is, you are the one with $, you got the power.

If the sales person don't make the sale, they at risk of losing a job if not meeting quota. There are cars everywhere. Depends how far you are willing to go to get the right price.

Study car prices for the areas you are shopping in off of NADA Guides or many auto sales websites like cars.com, autotrader.com, etc.. Don't make a ridiculous offer. Be reasonable on the pricing. Don't be afraid to walk out if they can't meet your reasonable price.

You are trying to save money, they are trying to make $. Just keep in mind, a lot of dealers make $ off of servicing cars, not so much on individual car sales. So don't try to meet too much half way, but at least be reasonable on your end of the offer.

Best thing u can do is research what you are buying and know it in and out. If you don't really know the product, salespeople will end up playing you.

Also when you are bargaining back and forth, where the salesperson has to ask their managers for approvals, you've got a good deal. If they are too easy on accepting your initial offer, you may not have bargained low enough. Dealers won't sell you a car if they will lose $ on it. If anything they'll just auction it off or trade another dealer or let another poor soul take the hit on paying more.

[debtfreeme]

Blog posts

read my two blog posts about my experience buying a car in March.

Shop last day of month, last day of quarter even better as they want to make their bonuses.

Know what the "holdback" from the parent company. The holdback is the inflating of the "invoice prices for every vehicle by a predetermined amount (2-3 percent of MSRP is typical). The dealer pays that inflated amount when it buys the car from the manufacturer. But later, at predetermined times (usually quarterly), the manufacturer reimburses the dealer for the excess amount. This is the "holdback," so named because funds are "held back" by the manufacturer and released only after the vehicle is invoiced to the dealership." (Edmunds.com)

Knowing the holdback means knowing how much their are already going to make on the car!

Research and get quotes online for exactly what you want. I did and saved a lot!

DO NOT ANSWER the following question: what color do you want it to be? Remain non committal and do not show emotion. This is a car, do not fall in love with it, do not let them see you fall in love with it. No more haggling for you if you do. This is a BUSINESS transaction. they are a business out to make money! Color is the last thing you mention.

Answer the following question with this answer: How much do you want your monthly payment to be? My monthly payment is based on the negotiated price minus my trade in times the interest rate you will charge me times the number of months I want to pay.

Drop a note if you have questions.