- 1). Research prices on cars that you are interested in buying, as well as the car you plan to trade in. Look in the newspaper, online and on car lots to get an idea of your car's retail value as well as the pricing on the car you want to buy. Check Kelly Blue Book for the retail and trade-in prices for your car. Be brutally honest about your car's condition to get the most accurate assesment of its value. To be sure, the dealer will be nitpicking every bit of your car in an attempt to drive down the trade in value. Beat him to the punch so you know what you have to work with. If you arm yourself with financial statistics, you can bargain more effectively and be sure that you are getting a fair deal. Keep in mind that cars with good fuel economy are in high demand. You won't find a great deal on a hybrid or get much of a trade in for your SUV.
- 2). Obtain loan approval before you set foot into a dealership. Shop around for the best rates offered by reputable lenders. It is possible to get financing through the dealer, but you won't necessarily get the best deal. Furthermore, it is best to have loan approval before you begin negotiations. Not only will this help streamline the closing process, you and the salesman will know exactly how much you are able to spend. Watch out for hidden add-ons to your loan that can drive up your payments. A common one is a life insurance policy that provides for the loan payoff on your car in case of your death. Be realistic about what kind of monthly payment you can afford, and stand firm once you have made the decision.
- 3). Schedule your car buying trip during a time when dealers are most motivated to sell. Usually, the end of the month is the best time for good deals. This is especially true if it has been a slow month. During this time, the salespeople will be stressing out about meeting their quotas and getting a good paycheck. Therefore, they are much more apt to negotiate with you on the 26th than on the 5th, when a whole month of prospective sales stretch before them. If you have a specific car in mind, pay attention to when the end of the model year occurs. This is not necessarily in December. Car manufacturers release new models throughout the year. This means that if it is June, you may be able to get a great deal on a current-year model because next year's models have just been released.
- 4). Go to the dealership with the right mindset. Now that you have done your financial homework, gotten loan approval and selected the best time for your trip, you are ready for battle. Set aside the whole day for car buying so you won't feel rushed to make a decision or feel impatient when playing the waiting game.
- 5). Walk into the dealership and tell the salesman that you are a today buyer. This lets him know that you are committed to make a purchase immediately, and it will be in his best interest to work with you if he doesn't want you to head across the street. Be upfront about what car or cars you are willing to consider and about how much you are willing to pay. Rather than one set figure, offer the salesman a range. If you tell him you are willing to spend 10,000, that's what you'll get even if they would have sold the car for 8,000. Be clear and firm from the beginning about your expectations. This lets the salesman know that you are not going to be manipulated or pressured. Once you have test driven and chosen your car, the real battle begins.
- 6). Go to the negotiation table with the same firm and confident attitude. This is the point in the car buying process when many people forget everything they have learned and all the promises they have made to themselves. Remain unemotional and detached. Even if you have fallen in love with the car, never let them see it. No matter how clear you have been about your financial limits, expect the first figure that they show you to be more than you want to spend. This is all part of the closing game. The dealers are betting that by this point you have become committed in your mind to driving that car home and will pay more than you have said that you will. Don't fall for it. Keep an eye out for dealer prep fees that may be included in the price. These can always be omitted, no matter what they tell you. Argue for a higher price on your trade-in. If you are buying a used car, closely go over the history report and point out the deficiencies.
- 7). Always be prepared to leave. If they still won't meet your price, the best thing that you can do is to call their bluff immediately. Stand up, gather your things, shake hands and say, "Thank you, but I'm going to look elsewhere." Watch how fast they stop you and run back to the business office for more number crunching. Let them know this is the last straw. You have set your price and if they can't make the sale, you are headed out immediately to find someone who can. Most likely, when they come back, it will be with the figure you want. If not, move on to the next dealership. Don't give up on getting the price you need.
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