Tips on Negotiating Low Car Payments
Buying a car is one of the biggest expenses that you will incur in your lifetime. During the buying process it is important to be a savvy and educated consumer so that you are able to get the best possible price and payments that are low enough for you to afford.
Know your credit score ahead of time. The higher your score the more you will be able to negotiate a lower payment. You can still negotiate with a low credit score but you will not have as much negotiating power. If you know well in advance that you will be car-shopping, do everything you can to improve your score.
Before you go to the dealership, establish a hard price for yourself that you absolutely cannot go over on. Having this price in your mind will be important in making sure that you do not buy more than you can afford while when numbers are being thrown in your direction. Do not give the salesperson this amount when the question "What monthly payment can you afford?" comes up. If they know the number, they will make sure that you get to it.
Your best time to shop for a lower car payment is when dealerships really need to make a deal, usually the end of the month.
Don't be afraid to make an offer and no matter how low it is, wait out the salesperson, and let them counter. Also, don't be afraid to secure or at least look at financing options through your bank or another bank not associated with the dealership. Someone else may give you a better interest rate and a lower payment.
You can negotiate what they want to give you for your trade-in vehicle. If you need to get more for it, let them know that and often they will at least come up a little bit. The more you are able to get for your trade-in, the lower your monthly payments will be.
Be firm with what you are willing to pay for a monthly payment and don't be afraid to walk away if an agreement cannot be reached. This is not the last car you will see and dealerships are fighting for your business.
You will be the one paying the bill each month so make sure it is something you are comfortable with and can afford. Be a savvy consumer and you will feel good about the purchase of your car.