Negotiating with Car Dealers: Tactics to Lower Your Price
Published November 30, 2023 at 10:09 pm
Gain an upper hand at the dealership with these top negotiation tactics to ensure you get the best deal on your next car purchase.

Understanding Car Dealer Tactics
When you step onto a car dealership, it’s important to understand the sales tactics often employed. Dealers are well-versed in negotiation methods designed to maximize profit, which include high initial pricing, bundling unnecessary extras, and urgency plays. One of their tactics might be to create a sense of urgency by suggesting a special price is only valid for a limited time.
Research Before You Go
Prior to visiting a dealership, arm yourself with knowledge. Research the fair market value of the vehicles you’re interested in on sites like Kelley Blue Book, Edmunds, or NADA Guides. Know the difference between the MSRP (Manufacturer’s Suggested Retail Price) and what customers are actually paying.
The Art of Negotiation
Always be prepared to negotiate. Start below what you’re willing to pay, and go up in small increments. Be firm yet polite and always ready to walk away if the offer doesn’t meet your expectations.
Focus on the Total Price
Don’t be distracted by monthly payment discussions before you’ve negotiated down the actual vehicle price. Dealers might elongate the loan term to get you a lower monthly payment while actually increasing the overall price.
Securing Financing
Secure financing from a credit union or bank beforehand. This will not only give you leverage but also protect you from high-interest rates from dealer financing. Compare rates and terms from different financial institutions to ensure you’re getting the best deal.
Timing Your Purchase
Dealerships have sales targets, often on a monthly and quarterly basis. Shopping at the end of these periods might net you a better deal, as sales staff are pushing to meet their goals.
Using Competitor Pricing
Don’t hesitate to use competitors’ prices as leverage. If you’ve found a better price elsewhere, present it to the dealer. They may match it or even offer a lower figure to get your business.
Additional Tips
Other tactics to lower your price include checking for any rebates or specials, being open to purchasing last year’s model, or considering a certified pre-owned vehicle. Always take a thorough test drive and don’t be afraid to ask hard questions about the car’s history, especially if it’s used.
Conclusion
The key to successfully negotiating with car dealers lies in preparedness, understanding of the car buying process, and the confidence to engage with salespeople on equal footing. Go in informed, stay calm, and remember, you have the power to walk away.

Avery Ingram
Contributor