Negotiating the price of a car at a dealership can be a skillful process that may save you money and ensure you get the best deal. Here are some tips to help you negotiate effectively:
Before stepping into the dealership, research the make and model of the car you’re interested in. Know its market value, average selling price, and any available incentives or discounts. Websites, online forums, and pricing tools can provide valuable information.
Determine your budget for the car, including taxes, fees, and potential additional costs. This will give you a clear understanding of the maximum amount you are willing to spend and help you negotiate within your financial boundaries.
Keep discussions about the purchase price of the car separate from discussions about financing, trade-ins, or extended warranties. Focusing on one aspect at a time can prevent confusion and ensure you understand the terms clearly.
Don’t settle for the first dealership you visit. Explore multiple dealerships to compare prices, incentives, and customer service. This gives you leverage when negotiating, as you can use quotes from one dealership to negotiate with another.
Consider the timing of your purchase. Dealerships may be more motivated to negotiate at the end of the month, quarter, or year when they are trying to meet sales targets. Additionally, shopping during slow periods, like weekdays, might provide you with more attention from the sales staff.
Be ready to walk away if the dealer isn’t meeting your desired price. This signals to the salesperson that you’re serious about getting the best deal. Sometimes, walking away can prompt the dealer to make a more favorable offer.
Focus on negotiating up from the invoice price (the amount the dealer paid the manufacturer) rather than negotiating down from the Manufacturer’s Suggested Retail Price (MSRP). This approach provides a more realistic starting point for negotiations.
Maintain a calm and polite demeanour during negotiations. Being respectful and cooperative can create a positive atmosphere and may encourage the dealer to work with you to find a fair deal.
Be aware of additional charges, fees, and add-ons. Dealerships may offer various products and services, such as extended warranties or accessories. Clearly understand what is included in the final price and be prepared to negotiate these items as well.
Once you reach an agreement, ensure that all terms, including the final price, any incentives, and the details of the transaction, are put in writing. This helps avoid misunderstandings and provides clarity on the agreed-upon terms.
Remember that negotiation is a common part of the car-buying process, and dealerships expect it. By being well-prepared, maintaining a clear understanding of your budget, and staying focused on the overall value of the deal, you increase your chances of securing a fair and advantageous price for your new car.
If, after reading all this, and you still feel anxious about dealing with dealerships, and/or prefer the convenience, Canada Auto has your back. The benefits of applying here at Canada Auto is that we have access to multiple lenders that can get you approved. Just apply via our safe and secured 3 minute hassle-free online application and we will match you up with the right vehicle, all from the comfort of your home.
