How Should I Negotiate the Best Possible Price for a New Car?

By — on / Business Negotiations

This is one of the most common negotiation questions. A car is one of the most significant purchases you’ll make, and the price is almost always negotiable. Here are some tips to help you with this financial negotiation.

Prepare, prepare, prepare. You can’t walk into a dealership without having done some online research. Online you can find out the dealer cost, invoice price and what other buyers in your area are paying for the car you want.

Choose the right process. You can either go to a dealership and negotiate with a salesperson, or put out a request for bids on the Internet. If you know exactly what you want, let the Internet do the haggling for you. Face-to-face negotiations are best if your final decision depends on cost.

Use the threat of walking away. Consider the salesperson’s position: if you walk out the door without signing on the dotted line, the deal is probably dead. One buyer recently shopped for a car alone and said he couldn’t make a decision until he spoke to his wife. The salesperson asked what price reduction was needed to sign the deal right away. The answer: a $900 price cut. The salesperson agreed and a deal was made.

There are lots of alternatives when buying a new car, but the salesperson’s alternative to deal with you is forgone profit.

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