How to buy a new car for less than the sticker price

Buying a car can be an intimidating process, especially when it comes to negotiating the cost. Consumers who do a little research before heading to the car dealership can be better equipped to effectively negotiate a lower price for the car and potentially even get a car for as little as half the original sticker price. There are a few things to know before negotiating the price of a car. Bring a calculator, pencil and paper with you to the dealership so you can make your own notes and calculations.

Instructions

1

Look at online auto retailers such as Autos.com, Cars.com and AutoTrader.com. Do a search on the make, model and year of the car in which you are interested and write down the prices. These prices are often lower than the sticker prices at dealerships, so you can buy the car from the online retailer and arrange to pick it up at a nearby dealership. Alternatively, write down the price on the car from the website and take that with you to the dealership to negotiate a similar or even lower price.

2

Visit the Kelley Blue Book website at KBB.org and look up the car in which you are interested. Kelley Blue Book will provide pricing guides for current market value and can be a valuable resource in determining the actual value of a car. It can also be a good negotiating tool at a dealership that is charging more (often much more) than the price listed with Kelley.

3

Note the "sticker price" of the car, which is the price posted on the car at the dealership. The dealership most likely bought the car for far less than this price, due to dealer incentives from the automaker as well as possible automaker refunds. If the dealership offers you the car "at cost" for the sticker price, it is still making a profit, so don't be swayed by any arguments that you're getting a great deal if you buy at that price.

4

Look at the second window sticker that lists additional costs, including fees, charges, and costs for dealer-installed options. These are all negotiable and can potentially be deducted from the cost of the car.

5

Ask the dealer about factory rebates, typically 1 to 3 percent of the sticker price, which usually goes to the dealership after the car has been sold but can be given to the buyer. Request that the factory rebate be deducted from the cost of the car. Inquire about factory-to-customer rebates as well.

6

Inquire about discounted loans, which can save considerable money over the lifetime of the loan. Note that many dealerships will not offer discounted loans in combination with rebates, so consider which one will save you money over time. A discounted loan may save more money overall than a rebate, but it will require a larger downpayment.

7

Be willing to walk away from a deal and always shop around before settling on one price. Take the offer from one dealership and go to another one to see if it can do any better. A little friendly competition usually works in the consumer's favor. In addition, start your offer below what you are actually willing to pay in order to be able to compromise with the dealer.