Buying a new car is an exciting time, but what may be much less exciting is the entire car-buying process. While we at Panama City Toyota aim to make your time with us as pleasant as possible, we know that buying a car takes time, costs money, and can be a lot of effort. One thing that a lot of people want to do is negotiate the price of a brand new model. If you want to know how to negotiate a new car price, keep reading for some really helpful tips.
How To Negotiate A Car Deal
Image via Flickr by Moto@Club4AG
The goal of negotiating a car deal is to get as close as possible to your desired price. Follow these tips to give yourself the best chance of having a healthy negotiation experience.
- Know your absolutes. It’s best to enter any negotiation process already knowing what your absolute limits are. Decide the maximum you’re willing to pay for your new vehicle, including tax, title, dealership fees, and anything else that’s calculated into the cost. You’ll also be better off knowing what you’re willing to compromise on. For example, you may be okay foregoing the three years of free oil changes in exchange for a certain amount of money off of the price. Or, think about how much APR factors into cost and see if there is anything you can negotiate there.
- Do your research. The more you understand about the vehicle you’re interested in, the market value, the current APR offers, and what other dealerships are selling the car for, the more serious your negotiations can be. While dealerships are definitely willing to hear you out and haggle on the price, they are better able to do so when you know what you’re talking about. Plus, you can approach the situation with confidence.
- Get comfortable. The best way to negotiate with a dealership is by interacting with a salesperson you feel comfortable with. If you don’t feel confident in and comfortable with the salesperson you’ve been assigned, ask for the sales manager or to be reassigned to someone new. Comfort is important because you’ll likely spend a bit of time at the dealership, and it’ll make it a good experience to have someone that you enjoy.
- Don’t forget the details. There is more than just the car’s price to consider and negotiate. You’ll also want to make notes to discuss the extended warranty, interest rate, loan and lease offers, your trade-in value, vehicle rebates, and any bonus add-ons that a dealership is offering, like free maintenance for five years or an audio package. Visit the dealership already knowing what you want on the car, the offers you’re willing to take, and how important each of these things is to you.
- Take your time. No matter how badly you want or need a vehicle, being in a hurry at the dealership can impact your focus and affect your negotiation skills. Inform your salesperson of your ideal purchasing timeline as well as your price range and needs so that they can help you set a good pace for getting the car you need.
- Get quotes from other dealerships. Contact multiple dealerships to get a quote on both the purchase of a new vehicle and the amount each dealership is willing to pay for your trade-in. If you have details on extended warranty and other items, even better. You can then use this information to determine which dealership offers the best value. Plus, if you really enjoy your experience at a quality dealership like Panama City Toyota, you can use this information to get a good value and a great shopping experience.
- Be prepared to walk away. Sometimes, negotiations simply don’t work out, and that’s okay. If the most you’re willing to pay for your new car, truck, or SUV doesn’t align with the dealership’s bottom dollar, or how much of a hit they are willing to take on the vehicle, then be prepared to walk away. Unless you truly need a car right away, it’s better to walk away than to enter into a deal you aren’t happy with.
- Ask for what you want. There’s no need to shy away from directness. If it’s a new vehicle you’re after at a certain price point, communicate that to the sales team. Everyone’s ultimate goal is to get you into a vehicle you’ll love. It’s just a matter of the cost at which everyone can make it happen.
- Start with the purchase price. It may be natural to discuss how much you’re willing to spend each month, but there are a lot of things that sales and financing teams can do to get you to your monthly payment while making sure that you pay their price for the car. For example, if you only want to spend $250 per month for your loan, the dealership can extend your loan terms so you only pay that amount, but meanwhile, you’re adding six more months to your loan and, therefore, paying more for the car overall.
What You Can Negotiate At A Dealership
There are many items you can negotiate when you’re purchasing a new car. Some of them include:
- Total vehicle cost.
- Extended warranty.
- Loan or lease offers.
- Extra service deals or packages, like free oil changes for life or an interior lighting package.
- Your trade-in.
- Interest rate for a new vehicle loan.
How To Determine The Market Value Of A Vehicle
The vehicle’s market value is something you’ll want to know before you start negotiations, and it’s easy to determine. Use an online tool from a trusted source like Edmunds.com, and enter the year, make, model, trim level, and vehicle options. Market value is calculated by looking at average figures across supply and demand, sales at dealerships in your area, incentives, and more. Take the resulting true market value to the dealership and compare it to the vehicle’s listed MSRP and invoice amount to see how close you are already.
Knowing the market value is helpful because then you’ll have an idea of how much you should pay for a vehicle before taxes compared to similar deals in your area. It’s a leveraging power that’ll help in your negotiations.
Now that you know how to negotiate buying a car, come on into Panama City Toyota. We are committed to getting you into a vehicle you’ll love. Contact us to get started in the negotiation process. We’d love to be able to work with you!
