How to Negotiate the Best Deal on a New Car

Buying a new car is an exciting experience, but if you want to negotiate the best possible deal, you might not know where to start. Follow these tips to get the lowest price and the car you want. 

Research Prices and Models

Do your research before ever stepping foot in a dealership. Look at reviews and compare models that fit your needs and budget. Use car valuation sites like AutoTrader and WhatCar? to see typical prices people are paying in your area. This gives you a benchmark to aim for in negotiations. Consider used cars too – you can often find nearly new models for significant discounts. 

Get Pre-Approved Financing

If you’re going for financing, get pre-approved by your bank or lender before negotiating. This puts you in a stronger bargaining position, as the dealer knows you already have financing locked in. Make sure you understand interest rates, monthly payments, and the total cost of the loan.

Consider Timing

Aim to buy near the end of the month or quarter, when salespeople are more likely to negotiate to meet quotas. Holiday weekends are also good timing. Avoid newly released models, as demand is higher. Be prepared to walk away and come back – patience pays off.

Determine Your Target Price

Based on your research, determine your target out-the-door price, including taxes and fees. Be realistic – if you start too low, the dealer may not take you seriously. Have a maximum price you’re willing to pay, and a minimum acceptable price in mind. This anchors negotiations.

Take Test Drives Strategically

Don’t commit to purchasing a specific car when you take a test drive. Test drive similar models at multiple dealerships. Narrow it down to 2-3 favourites. This allows you to negotiate among several dealers at once.

Make Your Initial Offer Low

Once you’ve settled on a car, start lower than your target price, but within the ballpark. Explain if you’re flexible on price for the right terms. Feel out the salesperson before countering. You want to give them room to make concessions without going to their manager.

Negotiate Piecemeal

Look at the full price, then negotiate each component separately – vehicle price, warranty, fees, financing/cash back offers, and trade-in value if you have one. This incremental approach gets more concessions than trying to lower the total alone.

Have Dealers Compete

Negotiate back and forth between different dealerships. Leverage higher offers and see if other salespeople will beat them. Don’t namedrop – ask what their best offer is and see if they’ll do better. Competing dealers against each other brings prices down.

Watch for Extra Fees

Dealers often try slipping in extra charges like documentation or conveyance fees. Treat these just like the purchase price – negotiate to have them removed or lowered. 

Read Before Signing

Don’t rush into signing anything unless you’re certain on the terms. Read the sales contract carefully to ensure agreed prices and figures, and the terms of any financing or extras. It’s easier to clarify questions now rather than argue later.

Work with a Reputable Dealer

A reputable salesperson selling specialist cars in Cardiff can help you find your dream car by asking the right questions and listening to what you want from a vehicle. 

Following these guidelines will help you negotiate the lowest price on a new car and have confidence you got the best deal. Do your homework, know your budget limits, and don’t be afraid to negotiate. Taking the time leads to real savings.