4 Secrets to Negotiating New Car Prices

February 22, 2012

Learn the tricks of the trade for negotiating car price with the dealer and increasing your leverage through research and strategic refusals.

Negotiating Car Price

When it’s time purchase a new car, effectively negotiating car prices with the dealership will spell the difference between a good deal and simply paying too much for a vehicle. While car dealers are in business to earn as much profit as they possibly can, they are also usually very sensible businesspeople; therefore, they will generally not let a car deal get away from them if there is any profit at all to be had. So, here's a quick list of useful strategies to help you in negotiating your next new car or truck purchase.

Know What It's Worth

Before heading out to the car dealership, make sure you visit either the Kelley Blue Book website or the Edmunds shopping guide website. Both of these sites offer excellent pricing information on every type of new and new car and truck made. You can get useful information such as the Manufacturer Suggested Retail Price, or MSRP, as well as the dealer invoice price. The dealer invoice price may prove very helpful when negotiating the price of a new car truck.

Tell Them You're Informed

When you arrive at the car dealership, make sure that the car salesman understands that you know how much the vehicle cost the dealership and that you don't plan on paying too much. However, never be mean or rude, just simply tell the salesman that you have the pricing information on the vehicle and are willing to let the dealership earn a fair profit but not too much.

Don't Get Trapped

When you arrive at the car dealership, park your car well out of the way of any other vehicles. In fact, if possible park your vehicle across the street and not on the dealership lot at all. Also, avoid giving the salesman your car keys for any reason.

The dealership will use any number of the tactics to keep get the dealership as long as possible; therefore, set a time limit for being at the dealership and let the salesman and sales manager know about it. Simply tell them that you don't have much time and want to negotiate a good deal rather quickly.

Don't talk about a trade-in, financing or any other part of the car deal until you are offered a price that is acceptable to you. If the salesman or sales manager doesn't appear to be taking your request for quick negotiations seriously, simply leave; however, before you leave, make sure that they have your telephone number. They will probably be calling you soon.

Take It Inside

While at the dealership, the dealer wants you to spend as much time in or around the vehicle as possible; the reason for this is quite simplethe dealer wants you to fall in love with the car or truck that you're interested in. Don't fall victim to this; rather, do all of your negotiation inside the dealership building itselfpreferably in the sales manager’s office. This will help you as well because the more time you spend with the vehicle you're interested in, the more time you will have to convince yourself to pay a higher price. So get out of the weather and take the negotiations inside.

These are but a few helpful tips to help you negotiate a lower price on a new car or truck; however, there are many other things that you should consider. But, by far the most important thing that you can do is be prepared and know how much a vehicle is worth before ever arriving at the dealership.

Also, always remember that your most effective negotiating tool is simply leaving the dealership. So, don't feel like you need to purchase a vehicle right away. Sometimes, making a good deal on a vehicle requires more than one trip to the dealership. Just let the dealership know that you're interested in the vehicle and are willing to make a deal that is reasonable for you both.

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