Whether you’re purchasing new or pre-owned, the car-buying process can be daunting. We’ve been there, and we get it. With a bit of preparation and common sense, however, you can make negotiating the price of your next vehicle a manageable task.
Research and Prep
It’s best to know what you want before taking a stroll through a dealer’s lot. That’s why we’re here; our Buyer’s Guide has all the information you need on new and prior-year vehicles, including what trim levels, powertrains, and packages to look for, and which to avoid. The more you know about what you want, the lower the chance you’ll be talked into a vehicle that doesn’t exactly suit your needs or finances.
If you’re thinking of trading in your current vehicle, check around to see what you could get for it in a private party sale as well as what to expect from a dealer. Plenty of websites can help with this, including our own. This will inform whether you feel like going through the hassle of selling the old car yourself—this usually nets more money but takes time and energy—and if not, what’s a fair value to accept.
Get Price Quotes From Multiple Dealerships
If you’re shopping for new vehicles, get pricing from nearby dealers. This not only ensures you’re getting the best deal, but it’s also useful info to have on hand for when you reach the negotiation process. Knowing the price of what you want beforehand also helps avoid the “how much are you looking to spend?” trap that many salespeople employ. Instead, tell them which model you’re interested in and ask for their best price.
How you plan to pay also matters at this stage. If you have cash, great, but keep that fact to yourself until you’ve agreed on a price. Many dealers make a lot of their profit on in-house or automaker-backed financing, and if they know you won’t be availing yourself of that service, the price may go up. If you are considering financing, check with a few local banks or credit unions to see what kind of rates and terms you can get before starting negotiations. You can then compare those figures to whatever the dealer is offering.
Get the Out-the-Door Price
Advertised specials often get you in the door of a showroom, but it’s the out-the-door price that you need to be most concerned about. This should include any dealer documentation fees, mandatory add-ons, and tax. If you can’t afford the total, you can’t afford that particular car.
This is where some dealers try to confuse customers by presenting lots of numbers on different documents. Make sure you fully understand what’s being presented to you before moving on to each successive step.
Read the Fine Print
Stay calm, and don’t let the stress of the situation get to you. If you’re lucky, the salesperson will be friendly and calmly walk you through the process. This is especially true at dealers with no-haggle pricing.
Remember, this is an adversarial process. Be vigilant about the numbers you’re being shown and read the fine print. All of it.
Nix the Dealer Add-Ons (and Be Ready to Walk)
Be ready to walk if you have to. Sometimes, when the salesperson or their manager says a price is non-negotiable or as low as they can go, the threat of you walking away from the table is enough to magically make things change in your favor. Just be genuine about it; apologize that you can’t go through with the deal and excuse yourself. Chances are the price will drop before you get into your car to leave, and if it doesn’t, well, you avoided paying more than you’d like or can afford.
And those mandatory add-ons? They might not be so mandatory after all. Some things, such as doc fees, are often difficult to get a dealer to budge on, but others, such as paint protection or VIN etching, are little more than ways for dealers to pad their profits.
We probably don’t have to remind you, but this is likely the second-largest purchase you’ll make. Go in with a plan, keep a level head, and approach the purchase like any other business transaction.
➡️ Skip the lot. Let Car and Driver help you find your next car.
Ever since David was a wee Car and Driver intern, he has kept a spreadsheet listing all the vehicles he’s driven and tested. David really likes spreadsheets. He can parallel-park a school bus and once drove a Lincoln Town Car 63 mph in reverse. After taking a break from journalism to work on autonomous vehicles, he’s back writing for this and other automotive publications. When David’s not searching for the perfect used car, you can find him sampling the latest in gimmicky, limited-edition foodstuffs.