Tips for Negotiating New Car Deals

Many people are reluctant to negotiate the price when purchasing a new car because they don't think they will be successful. It does take a bit of skill and research, but you can definitely walk off the lot paying less than the sticker price.

• Do your research. Find out the retail price and then compare that to the actual price that the dealer pays for the vehicle. Destination charges and other fees make the price of the car go up. When you look on the Kelley Blue Book website you will find not only the price of the dealer invoice but also the average price that consumers are actually paying for the vehicles. There are also cash incentives that the dealer receives that is not well-known public knowledge, but can be uncovered with online research.


• Decide your purchase amount. Determine the amount that you want to pay in advance before even speaking with the dealer. Once you start the negotiations with the dealer, start at a number below the one that you have set so that once the dealer starts moving the price up you will still end up with the number that you want and the dealer will think he is getting a deal.


• Shop around and compare dealerships. Play the car salespeople off of one another. Make sure to go during the weekdays when it is not so busy. Don't be afraid to walk off the lot if you don't get the price that you want.


• Set up your financing in advance. Get a loan from your bank or credit union so that when you approach the dealer you are a cash customer. This leaves them no wiggle room to try and negotiate a higher monthly payment.