Summary:
Negotiating a car price can be intimidating, but with the right approach, you can secure a great deal. After pandemic-related supply shortages, negotiation is back, making it possible to talk dealers down on many vehicles.
1. Understand Your Budget
Before visiting a dealership, calculate what you can afford. Experts recommend car payments be 10% or less of your monthly income, with total car expenses below 20%. Use online loan calculators to estimate costs, including MSRP, fees, and taxes.
2. Research Pricing
Check automaker websites for MSRP, discounts, and incentives. Compare dealer listings to identify fair prices. If trading in a car, research its value but expect dealerships to offer less than private sale estimates.
3. Secure Pre-Approved Financing
Get pre-approved for a loan from your bank. Dealerships make money from financing, so pre-approval gives you leverage to negotiate better interest rates.
4. Negotiate Effectively
Negotiate the out-the-door price, including fees and taxes, before discussing financing or trade-ins. Consider contacting multiple dealerships via email for better offers.
5. Time Your Purchase & Avoid Pitfalls
Shopping at month-end or quarter-end can lead to better deals. Keep your budget details private, avoid unnecessary add-ons, and be prepared to walk away if needed.
Following these strategies will help you confidently secure the best price on a new car.
Driving
Read the Full Article
