How to negotiate the best price when buying a new or used car?

Question

I'm going to buy a new or used car this weekend and I'm looking for some tips on how to get the best price, I'm paying it all in cash so I know that will help lower the price, but anything else that I can do to get it even lower?

Answer 1

Do some research on edmunds or kelley blue book. Then once you find a good price that you're comfortable with shave off a little. Then ask for a piece of paper. Then write down the price you want to pay for the car. Then show the salesman and say "I'm not going to pay you anymore than this price for that car, take it or leave it." Don't haggle, just repeat yourself and stay strong. He'll go and come back with 3 counter offers and then he'll meet your price. Just stay strong and repeat what i said above. If he doesn't meet you just leave. You'll at least find out the lowest price he's willing to give it away for.

Answer 2

First of all, paying cash does not help the dealer it just makes the deal easier for the manager. He doesn't have to worry if the deal will get financing approval.

Dealers and car companies make money on financing and often tie incentives to financing.

Now lets get down to the brass tacks of how to get the best deal. The most important thing is to know the dealers  cost of the vehicle you want BEFORE you walk into the dealership.

There are a lot of web sites that will provide the cost (usually at a price), but the easiest way is to take the retail price on the sticker and multiply the price by 88.1%. That will usually get the cost within about $150.

Next when you go into the dealership you must be ruthless! Get the salesman out of the way as soon as you sit at the desk. He can't make any decision and will always have to "go check with his manager" to get anything done. That is a way to wear you down and make you give in to the price they want you to pay. Work only with a manager.

Once you get the manager, explain to him that you can buy today if he meets your price. If he agrees then low ball him. He will do the same to you so,, don't feel any guilt. Remember this is a game and the best player will win the day.

You should  know about what the cost is by now, so offer at least $1000 less. Make him almost laugh at your guts.

Say "no" at least four times and then get up to leave. Don't worry, you can always go back to where you were and you haven't lost anything. Remember it is your money you are playing with, not his.

If the manager offers you a look at the invoice, make sure it is from the factory and not something that the back office typed up so he can show it to customers. You will know if the cost figures are in line with your information or not.

Also look for little things like the factory logo or the lack of any logos to give you a clue. A true "from the factory" invoice will always have  the "Ford" or "Honda"  or "Toyota" logo on the paper.

Once you get the price you want, then and only then tell the manager you are paying cash. He will depend on making and extra bump in finance so he will be willing to give a little more on the price.

Best of luck, and let me know how it goes. - Gary

Answer 3

Paying cash doesn't necessarily lower the price. For some, it's preferable but to most, it doesn't make a bit of difference.

Also, are you buying from a private seller, or a dealership?

Personally, when I sell cars, I already have them at the lowest price that I'll take for them. So, when people try to negotiate, I immediately tell them to leave.

However, a suggestion is to do research on the car, and find a fair value for it. Shoot for that value. For example, if a car is listed at $5,000, and KBB has it at $4200, go for $4400. That's relatively fair to both you and the seller.

"Best price" and "lowest price" are not always the same. You can get a horrible car for dirt cheap. For the same car in great condition, you might pay several times as much. And in the end, you'll get what you pay for.

Answer 4

Keep your cash a secret...only divulge this after the price is agreed upon. Dealers will sometimes offer to sell a car at cost or a slight loss if they think you will finance.

Sit down with your salesperson, let them know you are going to buy a car this weekend. You are not there to waste anyone's time, most of all your own time. Know the MOST you would be willing to pay and STICK TO THAT FIGURE,  no matter what. There are so many cars out there and the car they are selling is by no means one of a kind...refuse to "fall in love" with only one car.

Tell them that you have a concrete figure in mind and don't want a lot of back and forth haggling. Give him your offer (10% lower than the most you would pay). Give him three to four chances to meet you on price. Go up a little each time they come back at you...it's not how much you go up that matters, it's how many times you go up. Don't give them the most you will go until the 4th or 5th time....then if they still haven't sold the car to you, tell them the amount you won't go over and DON'T COMMIT to buy it at that price. You should put it to them like this "I know we have been at this for some time and I hope you understand that I am serious and am going to buy a car this weekend...with that in mind I may be willing to give you 15,000.00(as an example) if this works for you, here is my phone number call me if you want to business at this figure in the mean time I will mull it over as well.

This will send the message loud and clear that you are done and they will have to work to get that final offer amount from you. If they are anywhere close to a deal they will not let you leave. However, if they come back with a higher offer than your last offer...tell them that they have your phone number and to call you if anything on their end changes.

This is where they will make the deal or pass. If they pass and you leave, they may still call you and accept the deal.

Good luck