Getting the best price on a new car is often about smart negotiation. Forget focusing solely on the dealer’s invoice price, which is less relevant now. Instead, your starting point should be the average transaction price for the car model and trim you want. Consumer Reports and similar resources provide this crucial data, showing what others in your area are actually paying. This transaction price is your target for a fair deal. Aiming for the lower end of this price range is a strong starting position in your negotiation.
Once you make your initial, well-researched offer, expect a back-and-forth. The salesperson will likely consult with their sales manager, leading to counteroffers. Be prepared for these initial counteroffers to be significantly higher than your target price. Patience is key here; allow time for each step of this negotiation dance.
A useful tactic is to subtly mention that you’ve received competitive quotes from other dealerships. You don’t need to disclose the exact figures, but stating that you’re seeking the lowest markup over your bottom-line price can be effective.
Alternatively, inquire if the salesperson is willing to beat a price you’ve obtained from a reputable car buying service. If they express interest, present your price – ideally with a printout for clarity. This shows you are serious and have done your homework.
Throughout the negotiation, strive to maintain a non-confrontational approach. Instead of directly countering the dealer’s offers downwards aggressively, incrementally raise your initial offer. Starting from the average transaction price will likely lead to a quicker negotiation process. If you begin with a considerably lower figure, be prepared for a longer discussion to reach an agreement.
Maintaining focus is crucial. If the salesperson brings up a trade-in, politely defer that discussion until you’ve finalized the price of the new car. Separating these negotiations is essential to getting the best value on both transactions.
Regarding financing, inform the salesperson upfront that you’re pre-approved for a loan and are prepared to pay cash. However, also express openness to considering dealership financing if they can offer competitive rates. Emphasize that settling on the purchase price is your immediate priority.
Communicate clearly that a fair deal for both parties will result in a swift sale. If an agreement can’t be reached, you’re prepared to explore other options. This straightforward approach can streamline the process.
You might find yourself dealing with a more experienced sales associate or even a sales manager during these discussions. If this happens, simply reiterate your established ground rules and desired price to the new person. Regardless of who you are negotiating with, clearly stating your objectives and price expectations will help navigate and counteract common sales tactics, ultimately increasing your chances of securing the best possible price on your new car.
