6 Tips on How to Negotiate the Best Car Deal

December 17, 2019

6 Tips on How to Negotiate the Best Car Deal

Most car salespeople are well-trained negotiators. They hold an advantage over a car buyer when negotiating the best deal possible. After all, they do it every day while the average buyer haggles once every several years. But there are strategies that can shift the balance toward the buyer in the negotiation process.

Here are 6 strategies to negotiate the best vehicle pricing.

  1. Know Your Stuff

The biggest bane of seasoned sellers is a well-prepared buyer. Shopping for a vehicle is the same as every other large purchase. Before they even walk onto a car lot, shoppers should know what type of vehicle they want, the price they’re willing to pay, and how they’re going to pay for it. Fortunately, all the information needed can be researched online.

The first item to research is how much you can afford to spend on a vehicle. Calculate a monthly budget to see how much disposable income is available for a monthly car payment. Then approach the bank or online lender to get pre-approved for a car loan.

Shopping for the type of vehicle is easy. There are plenty of dealer sites online for both new and used vehicles. Auto Trader Canada is a good site for used car shoppers. Choose several makes, models, and year manufactured to research. Enter the information into Kelley Blue Book Canada or Canadian Black Book to get an idea on the vehicle’s value. Narrow the choices to those that fit within the pre-approved car loan amount.

By researching estimated vehicle prices and available loan amounts, the buyer becomes resistant to car dealer pricing and financing tactics.

  1. Negotiate Based on Total Price, Not Monthly Payment Amount

Some sellers will try to get a higher price by extending repayment terms with a lower monthly payment. Don’t fall for it. Negotiate the total vehicle price based on the online research. Car or truck financing is a secondary issue that can be negotiated after settling on a price.

  1. Check the Vehicle’s History

Once the price is negotiated, it’s advisable for used car shoppers to check the vehicle’s history. This can be done on the dealer lot once a car is chosen. Go to CARFAX Canada, enter the vehicle’s VIN and receive a report on its accident history, unfixed manufacturer recalls, and any registered liens. The information can be used to negotiate a lower price or, if the history is a concern, choose another vehicle.

  1. Negotiate a Trade-In Value

Negotiate a trade-in value after a price is offered. Once the seller is committed to a sale, they’ll likely be more flexible on a trade-in value.

  1. Compare Prices to Other Dealers

Take some time to think about the pricing offer and shop around at other car dealers. Compare pricing, vehicle financing, and trade-in value to see if there’s a better deal available for a similar car.

  1. Bring a Partner to Run Interference

As stated earlier, one-on-one negotiations favour the car dealer as they have the most experience. But that advantage shifts to the buyer if they bring a devil’s advocate to the process. A trusted advisor will see things objectively and guide the buyer through negotiations. If the negotiation is going poorly, or the seller is too aggressive, the partner can suggest going to another dealer disrupting the seller’s tactics.

 

Negotiate the Best Car Deal

 

Following these six steps will help car buyers to negotiate the best deal possible. The key step is doing the necessary research before stepping onto the car lot. The more knowledge the car buyer has, the better the price they can negotiate.

YourCarLoan.ca has 1,000s of used cars, trucks, SUVs and minivans available at locations throughout Ontario. With a nearly 100% approval rating for vehicle financing, YourCarLoan.ca is putting more people into quality vehicles every day.

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