How to Buy a Car by Haggling

New cars can be very expensive, so it makes sense to try your darndest to get the absolute lowest price you possibly can when you go to purchase one. Car salespeople love it when people offer to pay sticker price, but they still make a significant amount even if you pay less. That's why you should always try haggling. It is not only in your best interest, it is also expected.

Difficulty: Moderate

Instructions

1. Decide on the budget you have available for your new car. Include both the price of the car and the cost for fees, tax, tag and title. If you're not sure what this number would be, there are online calculators that can help (see Resources). Write it down and commit yourself to sticking to it. Do not let the salesperson know your top-end budget number, even if he asks. If you do, he will just try to shoot for that number. Just say you want a competitive price.

2. Determine the type of car you want before you go to the dealer. Then find out exactly how much it is worth. A good way to do this is to look at a site like Kelley Blue Book. These sites will give you the invoice price, the manufacturer's suggested retail price (MSRP) and dealer incentives. Don't just look at the base price. Find the price for each and every option you would like added. (You can buy them singly or as a package.) See if the car is still in your budget. If not, look at a cheaper make or model. There is no point of out-pricing yourself at the get-go.

3. Go to the dealer and take your car of choice for a test drive. Act noncommittal as to whether or not you like the car. If you scream, "I love it! I have to have it!" the salesperson will be thinking, "Ka-ching!" Always give the impression that you are willing to walk away without buying anything.

4. Tell the salesperson you may consider buying the car if you can get an affordable price. Always make the salesperson throw out a number first. Then you can try to haggle down from there. Never, ever accept the first offer. Instead, look surprised that it is so expensive, even if it is lower than you expected.

5. Give the salesperson a counteroffer that is at least $2,000 less than what you are willing to pay. See how she reacts. If you get a yes, you can either agree to the offer or say, "Is that the lowest you are willing to go?" If you get a no, ask what the dealer can do for you, such as throwing in a few extra options or perhaps a gas card to convince you to buy the car.

6. Really listen to how the dealer responds to your questions. If he offers to work with you to give you your bottom-line number, offer up a small concession. That way you will both feel like you are getting what you want. Don't count on a discount if you offer to pay cash. Salespeople are told to push dealer financing.
   If you're not sure you're getting the best price, say you have to think about it or you have to ask your spouse (real or imagined). If he sees you are going to leave, you might get offered a better deal.

7. Be prepared for the salesperson to try to get you to purchase aftermarket options, such as clear coating. Do not be talked into these offers. They are all unnecessary and give the dealer a very high profit margin, hence the reason the person will push them so adamantly. Again, be willing to walk away if she gets too aggressive trying to sell you these options.

Tips & Warnings

• Realize that your relationship with the car salesperson is strictly a business one. Some try to tell you they need to sell more cars to make their incentive, pay for their kids' tuition or another reason like this. This is not your concern and may not even be true. Don't let it sway you or feel personally responsible. If you know you won't be good at haggling, bring a friend who is great at arguing.
• Never go to the dealer without doing your research first. Salespeople try to make their products seem better than they are at times. You don't want to be fooled.

References

• How to haggle
• Kelley Blue Book
• Tags, titles and fees and tax calculator