How to Make Sure You Get a Fair Price for Your Car

Shutterstock

Driving off in a new car is one of the most satisfying experiences you might have in life, but the process of negotiating a fair price is not something that many people look forward to. With a little bit of research and preparation, you can make sure that you get a good deal.

In the United States, there aren’t very many buying formats where negotiating price is the norm; however, in the car market, it is common to haggle in order to ensure a fair deal. By reading this guide, you will have some tips to help you avoid an unnecessary dent in your bank account.

Before you go into a negotiation with a car dealer, you need to do some research and preparation. The more information you have about the car you want, the more likely you will be to find someone to give you a fair price. You also need to understand your budget and determine what type of vehicle is right for you. Consider what type of car you can afford, and weigh the pros and cons of owning a new car versus a used car.

When choosing the car make and model, there are many reliable information sources available online that give specifics about the features and overall value of car models. You can also research the rankings of cars based on their performance and reliability in relation to the price. This will give you a sense of overall value for the amount of money you are able to spend.

Once you choose the right car, you want to know all the important specific details about the vehicle before going into the dealership. Find out MSRP is for the vehicle, the average price that consumers pay and the amount that dealers pay for the car. If you find out the demand of the vehicle, you can determine how much room you have to negotiate a lower price. If the car is in lower demand, the seller might be willing to drop the price.

Whenever possible, arrange for the financing of the car before going to dealerships. When dealers package the financing in with the car buying procedure they usually have ways of increasing the final price. They can’t use these tactics if your financing is set up ahead of time. If the dealer knows that you already have a financing deal, they might be willing to offer you an even more attractive one with lower payments and interest rates.

When you go to the dealership, it’s important to choose the right time. If you can find out when a dealer is getting close to their goal date for their quarterly sales, they’ll be more motivated to sell and more willing to drop the price.

Don’t just shop at one dealership. Test the drive the car at one dealership, and contact several others to find out who is offering the best price in your area. You also have the bargaining power of mentioning better offers that you have gotten from other dealers. When talking to dealership staff, always be well-mannered. View it as a business deal between mature people rather than a contest of will.