How to Haggle a Good Price on a Car

Buying a new car or a used car is one of the most difficult purchase transactions you can make. When shopping for a car, research pays off. You will want to visit the dealer armed with information and knowledge on how the process works.

Difficulty: Moderately Easy

Instructions

1. Find out the factory invoice. If it's a new car, you will want to find out how much the factory invoice on the car is. That is, how much the dealer paid for the car. While this may not actually give you the "true" price, it will give you a good point from which to start. You can find many dealer invoice prices on Kelley Blue Book (see Resources below) under the section marked "Invoice" after you have put in vehicle information and clicked on "Pricing."

2. Check into rebates. Do your research and find out if the dealer is offering rebates or if there are factory rebates available. Quite often, auto companies such as Toyota, Honda, Mitsubishi, and Nissan will offer rebates to entice customers to purchase a new car.

3. Don't be afraid to walk away. If you've done your research and know what the vehicle is worth and what the dealer paid, don't allow the dealer to bully you into thinking you must accept their "final" price. You might be surprised to find that walking away from the deal will result in a phone call later in the day offering a better price.

4. Avoid being talked into options you don't want. That new car smell of the shiny new Lexus or Toyota Highlander Hybrid might just dizzy you into thinking you MUST HAVE that top-of-the-line entertainment system or the dashboard navigation system. You should make a list of your must have car options ahead of time and not allow the dealer to tack thousands of dollars onto the price for options you didn't want in the beginning.

5. Check used car prices. If you are in the market for a used car, check with both individuals and dealers. Often, dealers will charge a premium while individuals will give the best price. Just be sure to get the car checked over by a mechanic!

Tips & Warnings

• Make it very clear to the dealer that your time is valuable and you want to make the sale as easy as possible for them, but that you will not be taken advantage of.
• If you hate haggling in person, do your research online, call a dealer and tell them what you will pay. Tell them it is your non-negotiable price, but if they can meet it, you will come in to purchase the vehicle immediately. Be prepared to back that up!

Resources

• Kelley Blue Book

[georgelarson]

on 3/25/2009 Very good suggestions to follow when buying a car.