How to Negotiate Car Payments

Negotiating car payments provides lower monthly costs.

Negotiating lower car payments may indirectly allow you to pay less for your car over the long haul, so attempt to lock in a low monthly payment. Once you have signed a lease or financing agreement and leave the dealership you will be tied to whatever payments you have agreed upon for the entire term. Have all of your financial information available and use the positive aspects of your financial history as leverage to get the best deal.

Instructions

1. Negotiate the total car cost first. Research the car's model and base pricing. Come up with a reasonable purchase price that ensures you secure a good monthly payment, but allows the dealer to make a profit. Being unreasonable in your expectations will not only stall negotiations, it may leave you with an uncooperative dealer. Bring this research with you to provide fodder for your negotiation efforts.

2. Discuss the monthly payments you want to pay. Determine the length of time the payments cover. Extending the lease or financing to 48 or 60 months will lower your monthly payments but may increase the total cost due to interest accrued over the term of the deal. Remain firm throughout the negotiations; sometimes simply refusing to cave on the first counter-offer is enough to get the dealer to make a better offer.

3. Keep a close eye on the terms the dealer presents to you. Have him walk you through the total cost of the car once you have agreed on a monthly price. Often you may find he has included an unnecessary add-on like rust-proofing.

4. Wait until the very end of the negotiation process before agreeing to a purchase price or signing anything. This forces the dealer's hand into adding incentives (dealer rebates, gift cards, etc.) to your financing agreement that can provide substantial savings.

References

• Loan: How to Negotiate Lower Monthly Car Payments
• Lease Guide: How to Negotiate Car Lease Payments