How to Negotiate the Best Car Payment

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If you are ready to purchase a used or new car, walking away from the dealership knowing you have won a good deal is fulfilling. But, to do this, you first need strong negotiation skills. Fortunately, negotiating a car price is not too difficult as long as you understand the process and how it works.

Negotiation is the final big hurdle of the car-buying experience. You have already met the seller or the salesman and probably finished the test drive, leaving you to just nitpick the payments.

1. Shop Your Price

When purchasing a car, you have to research the market price of the car you want before you start negotiating. You need to know the average price paid for that car to settle on the best dealer. Once you have received the price from a dealership, it is best to contact different for a quote to compare the prices and ensure you are not paying a lot than what is in the other stores.

After getting the prices, try to assess the car value by keying its information on a website that appraises and tracks car values, such as Edmunds or Kelley Blue Book. You can also consider looking for cheap insurance with no deposit required as an option as well.

2. Negotiate Remotely

If you are done with the test drive, you are now free to do the negotiating work from home so that if the prices aren’t favorable, you don’t have to leave the dealer physically. Instead, you will just send a text or email communication, or probably say goodbye through a phone call.

3. Negotiate the Final Drive-away Price

While negotiating the car price, ensure you are working on the total price you will pay and drive away with your car. This payment is commonly known as the out-the-door price. Tell your dealership that you will only discuss the out-the-door price, and it should include sales tax, fees, and any other costs needed. In case the dealer starts giving you additional charges when closing the deal, you should consider walking away.

Negotiating by the monthly payment price can make you end up paying more in the long run, so don’t use that as your leverage. Many people also forget about the additional monthly payments, such as insurance.

4. Keep Emotions Out of Your Transactions

When you are ready to start your car payment negotiations, you need to remember that your goal is to achieve the best deal out of it. It is easy to get attached to a specific car or feel like you have already invested a lot in a particular contract, but your emotions shouldn’t get in the equation. If you are careful, you could get away with less than the optimal sales price. You need to be ready to walk away if you haven’t ended up with a fair price. Don’t feel bad about declining an offer or feel like you are wasting anybody’s time.

5. Be Unpredictable

Before you decide to visit the dealership to close the deal, ensure you are prepared to call the shots. Salesmen are used to controlling the customers by pushing them for the test drive, getting into their sales office, and hammering out the deals quickly. The best way is to be unpredictable when negotiating. When you have given an order, and the salesman doesn’t treat you well, you should leave, don’t start providing other prices. This can make them see that you aren’t decided, and you end up paying more.

Wrap Up

Negotiating a car can be a frustrating and lengthy process. Some salesmen use this to their advantage to get you to agree to their terms and prices. So you hammer out a deal to make sure you request for a breakdown of the total fees so that there are no bogus charges added by the dealer to try and get back the benefits they have given you. If the total price looks excellent, you can close the deal, knowing you are a savvy negotiator.

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