What Can I Negotiate When Buying a Car?

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When you mentally prepare yourself to buy a new vehicle, you often focus on which tactics you will use to talk down the price of the car. As you may know from experience, the sticker price of the vehicle is only a starting point. In fact, if you are an expert haggler, you can negotiate with the car salesman and save quite a bit of money off of the Manufacturer's Suggested Retail Price by sticking firm. Did you know that the sales price is not the only thing that is up for negotiation when you are buying a new car? There are several other ways you can save money if you are informed with how dealerships work.

Start By Researching the True Cost of the Car
A dealer will never give a vehicle away for less than they paid for it. Dealers buy cars, advertise the cars, and offer incentives to potential buyers. You must know how much a dealer really needs to pocket to profit from selling a car before you go to a dealership and make an insulting offer. The key to negotiating is finding out what the dealer paid for the car. You can find this secret information online by searching for dealer invoicing pricing.

Now that you know the real cost of the car, you have the evidence you need to start making your offers. Go in low and do not bring out the big guns unless it is necessary. Once you get close to end the of the negotiations on sales price, you may be able to use the dealer invoice pricing to your advantage.

Buying a Car
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Incentives and Rebates
Believe it or not, dealerships do not always advertise incentives and rebates. If you want a new car, chances are the manufacturer is offering some kind of hidden factory-to-dealer incentive that is offered to the dealer. If you research databases for hidden and advertised incentives, you can use these to your advantage when you are negotiating. The incentive that would have been hidden may give you bargaining power to get cash back on your purchase or to get the sales price of your car even lower.

Extended Warranties and Gap Protection
Did you know that dealerships often make more money from add-ons than they do from selling a new car or a used car. When you go into the finance office, it is the representative's job to offer you alarms, window tinting, warranties, and gap protection. Extended warranties and gap protection are main targets because dealer makes such a pretty penny from the sale.

If you are offered a factory-backed warranty, you will be amazed at how low you can get the warranty. The initial offer is inflated because not everyone will try to negotiate. The finance manager will keep reducing the price of the warranty simply because they earn a commission on it and they want you to buy it.

When you walk onto a car lot, you need to be prepared to negotiate. Stay focused, be calm, and stay in control of the sale. If you do your homework and make a reasonable offer, you will show the dealership that you are serious about getting a good price.
Alison Fenton
About the Author:

Alison Fenton knows the stress and frustration a person can go through when buying a car. When recommending car dealerships, she trusts the honest professionals at Overseas Motors Mercedes Benz. They provide a variety of affordable new and used cars Windsor Ontario and the surrounding areas have only dreamed of! To learn more about the quality vehicles they offer, visit their website today!

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