7 Tips on How to Haggle with a Car Dealer and Save Money

Buying a car can be a stressful and expensive process, but it doesn’t have to be. You can negotiate a better deal with a car dealer if you know how to haggle effectively. Here are some tips on how to haggle with a car dealer and save money on your next car purchase.

Key Takeaways

Haggle with a car dealer by doing your research, shopping around, being confident and polite, focusing on the total price, not revealing your trade-in or financing plans, walking away if necessary, and checking everything before signing.

You can save money on your car purchase by negotiating between 10% to 20% off the sticker price of a new car, and between 5% to 15% off the listed price of a used car.

Avoid common haggling mistakes, such as being unprepared, emotional, eager, rigid, or trusting.

1. Do your research.

Before you visit the dealership, do some online research on the car model, features, and prices that you are interested in. Compare prices from different dealers and sources, such as Edmunds, Kelley Blue Book, and Consumer Reports. This will give you an idea of the fair market value of the car and help you set a realistic budget and target price.

2. Shop around.

Don’t settle for the first offer you get from a dealer. Visit multiple dealerships and get quotes from each one. You can also use online tools, such as TrueCar, CarGurus, and AutoTrader, to find the best deals in your area. Shopping around will give you more leverage and bargaining power when you haggle with a car dealer.

3. Be confident and polite.

When you haggle with a car dealer, be confident and assertive, but also respectful and courteous. Don’t be afraid to ask for a lower price or a better deal, but don’t be rude or aggressive. Use positive body language, such as eye contact, smiling, and nodding, to show that you are interested and engaged. Avoid negative body language, such as crossing your arms, frowning, or shaking your head, to show that you are not satisfied or convinced.

4. Focus on the total price, not the monthly payment.

One of the common tricks that car dealers use to make a deal seem more attractive is to focus on the monthly payment rather than the total price of the car. They may offer you a low monthly payment, but with a longer loan term or a higher interest rate. This will end up costing you more money in the long run. To avoid this trap, focus on negotiating the total price of the car first, then discuss the financing options later.

5. Don’t reveal your trade-in or financing plans too soon.

Another trick that car dealers use to make more money is to adjust the price of the car based on your trade-in or financing plans. For example, they may offer you a lower price for the car if you have a trade-in, but then give you a low value for your trade-in. Or they may offer you a lower price for the car if you finance through them, but then charge you a higher interest rate or fees. To avoid this, don’t reveal your trade-in or financing plans until you have agreed on the final price of the car.

6. Walk away if necessary.

Sometimes, the best way to haggle with a car dealer is to walk away from the deal. If you feel that the dealer is not willing to negotiate or give you a fair price, don’t be afraid to walk away and look for another dealer. This will show them that you are serious and not desperate, and they may come back with a better offer or call you later.

7. Check everything before signing.

Once you have reached an agreement with the dealer, make sure to check everything before signing the contract. Read the fine print and look for any hidden fees or charges that may have been added without your consent. Make sure that everything matches what you have negotiated and agreed on verbally. If you find any discrepancies or errors, ask for them to be corrected or removed before signing.

Tips

Do your research and set a realistic budget and target price before visiting the dealership.

Shop around and compare prices from different dealers and sources.

Be confident and polite, but also firm and assertive when negotiating.

Focus on the total price of the car, not the monthly payment.

Don’t reveal your trade-in or financing plans until you have agreed on the final price of the car.

Walk away if necessary and look for another dealer if you are not satisfied with the offer.

Check everything before signing and make sure there are no hidden fees or charges.

How to Haggle with a Car Dealer: A Statistical Report

Buying a car can be a stressful and intimidating experience, especially if you have to deal with a car dealer who is trying to get the best price for their vehicle. However, you can use some strategies and techniques to negotiate a better deal and save money on your purchase. In this report, we will present some statistical data and tips on how to haggle with a car dealer effectively.

Global Demand for Cars: A Changing Landscape

The first thing you need to know before you haggle with a car dealer is the global demand for cars and how it affects the prices and availability of different models. According to the International Organization of Motor Vehicle Manufacturers (OICA), the global sales of passenger cars and commercial vehicles declined by 16% in 2020, from 91.8 million units in 2019 to 77.6 million units in 2020. This was mainly due to the impact of the COVID-19 pandemic, which disrupted the production, distribution, and consumption of cars worldwide.

However, the demand for cars is expected to recover in 2021 and beyond, as the vaccination programs and economic stimulus measures boost consumer confidence and spending. The OICA forecasts that the global sales of passenger cars and commercial vehicles will increase by 10% in 2021, reaching 85.6 million units. The growth will be driven by the emerging markets, especially China and India, which have large populations and rising incomes. The demand for electric vehicles (EVs) and hybrid vehicles (HEVs) will also continue to grow, as consumers become more aware of the environmental and economic benefits of these vehicles.

How to Haggle with a Car Dealer: Tips and Tricks

Knowing the global demand for cars can help you haggle with a car dealer, as you can use this information to your advantage. For example, if you are looking for a popular model that is in high demand and low supply, you can expect to pay a higher price than if you are looking for a less popular model that is in low demand and high supply. Therefore, you should do some research before you visit a car dealer, and find out the market value, availability, and features of the car you want.

Once you have done your research, you can use some tips and tricks to haggle with a car dealer effectively. Here are some of them:

Be polite but firm. Don’t be rude or aggressive, but don’t be afraid to say no or walk away if you are not satisfied with the offer.
Don’t reveal your budget or your maximum price. Let the car dealer make the first offer, and then counteroffer with a lower price.
Don’t focus on the monthly payment. Focus on the total price of the car, including taxes, fees, and interest rates.
Ask for discounts and incentives. You may be eligible for rebates, cash back, financing deals, or trade-in offers that can lower the price of the car.
Compare prices from different dealers. You can use online tools or visit multiple dealerships to find out the best price for the car you want.
Be flexible and open-minded. You may be able to get a better deal if you are willing to compromise on the color, model, or features of the car.

Haggling with a car dealer can be a challenging but rewarding process, as you can save money and get the car you want. However, you need to be prepared and informed before you enter the negotiation. By following the tips and tricks we have presented in this report, you can haggle with a car dealer effectively and confidently.

Frequently Asked Questions

How much can I haggle with a car dealer?

There is no definitive answer to this question, as it depends on various factors, such as the demand and supply of the car model, the time of the year, and the dealer’s willingness to negotiate. However, as a general rule of thumb, you can expect to haggle between 10% to 20% off the sticker price of a new car, and between 5% to 15% off the listed price of a used car.

When is the best time to haggle with a car dealer?

The best time to haggle with a car dealer is when they are more motivated to sell their inventory and meet their sales quotas. This usually happens at the end of the month, quarter, or year, when dealers are under more pressure to clear their lots and make room for new models. You may also find better deals during off-peak seasons, such as winter, when the demand for cars is lower.

What are some common haggling mistakes to avoid?

Some common haggling mistakes to avoid are:

Being unprepared and uninformed about the car model, features, and prices that you are interested in.
Being too emotional or impulsive and letting your feelings get in the way of your rational judgment.
Being too eager or desperate and showing the dealer that you are willing to pay any price for the car.
Being too rigid or stubborn and refusing to compromise or make concessions.
Being too trusting or naive and believing everything that the dealer says without verifying or questioning it.

References:

https://www.wispolitics.com/wp-content/uploads/2021/08/State-Laws-on-Direct-Sales.pdf

https://s3-prod.autonews.com/2021-12/2020-Top-150-Dealership-Groups.pdf

https://s3-prod.autonews.com/2021-12/2020-Used-Volume-Leaders.pdf

https://www.kbb.com/car-advice/how-to-negotiate-with-a-car-dealer/
https://www.consumerreports.org/buying-a-car/how-to-negotiate-the-best-car-price/