How to Haggle When Buying a Car
If you plan on buying a car from a new or used car dealer, you need to know how to haggle with a salesman so you can get the best price possible. Many car buyers are intimidated by the idea of haggling with a car salesman and end up spending more money than necessary. In order to get the best deal, you should never be afraid to haggle. Being unprepared, or shopping out of desperation, can lead to ineffective haggling and a bad buying decision.
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Instructions
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Research vehicles you're interested in buying before you make a trip to a car dealer. Your research should include information about car models you find interesting or that are likely to meet your transportation needs. Consider options, compare costs, crash-test results, reliability, fuel economy and other factors that are important to you. Find out the vehicles' wholesale values. From this you can determine a maximum amount of money you're willing to spend on any particular vehicle. Figure on getting a car at 2 to 5 percent over wholesale if you stick to your guns.
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Refrain from revealing your trade-in details until thoroughly haggling and settling on a firm price. If you're not satisfied with the car dealers trade-in value, sell your former car privately. You're likely to get a better price.
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Avoid haggling for only one car, even if you have already made up your mind on exactly which car you have your heart set on. Don't let the salesman know which of the cars you can't live without. Continuing to haggling and compare pricing between two or three different cars may ultimately get you the lowest possible price on the car you most want to buy. By continuing to haggle, you also may find an even better deal for another car.
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Take a firm stand and walk away if you don't feel comfortable with the salesman, or the car being sold. Follow your instincts if something does not feel right and avoid being pressured into making a deal.
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Avoid naming "your lowest price" if a car salesman asks you to do so. Once you name your lowest price, you have set the bar and you could lose the opportunity to get an even lower price for another car. Continue comparing car options and prices between cars to find the best price. If the salesman asks you what you think is a fair profit for the dealer to earn, refrain, or tell him one percent, one-half percent or similar.
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Inspect each car thoroughly and point out any faults. If possible, have an auto-mechanic friend inspect a used car under the hood. Faults such as old tires, exhaust, dents and old parts allow you to negotiate a nice reduction in the final sales price.
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Tips & Warnings
Avoid the impulse to buy a car during the first visit to a car dealer. Visit more than one car dealer and compare prices and options.
Shop for a car while your current car is still in good working order. If your old car is about to break down, you could end up in a desperate situation to quickly buy another car.
Avoid signing papers or haggling with a car salesman you are not comfortable with.
References
- Photo Credit funny car image by diter from Fotolia.com
