Save money, stress and time during a new car purchase by negotiating the right way. It has never been easier to determine dealer cost for new cars--several pricing tools are available to you online. Many dealers also employ Internet sales people who can negotiate with you via email, so you don't have to even step into a dealership to haggle.
Research
Researching is one of your best negotiating tools. From the manufacturer's website, you can build a new car and price it with different options or packages. Use this tool so you know exactly what you want, rather than have a salesperson persuade your interest to a higher-priced vehicle. Also, knowing the correct MSRP (manufacturer's suggested retail price) can help you to identify unnecessary dealer add-ons, such as warranties, marketing fees or other forms of dealer profit. From the manufacturer's website, you can also review rebates and incentives, such as money off the MSRP or special financing such as zero percent. The Edmunds website offers a True Market Value tool to educate shoppers on invoice-pricing, which is the price at which the dealer owns a car. Using both Internet tools will help you to determine the best price for the car you want.
If you want to test drive vehicles before you make your final decision, do so before negotiating. Once you know which car you want, go to the manufacturer's website to find dealers in your area, not just one. Go directly to the dealer websites from the manufacturer's list to see if any special pricing is listed on the dealers' pages--some advertise lower prices to increase interest. Email a dealer and ask for their best price. A fair price for a new vehicle is invoice-pricing to $700 over invoice-pricing before any rebates or special financing. Wait for dealer emails to see what they offer. If the offer is too high, email back with your own offer. Take your best price and continue to email dealers. In your email, state that you have already test driven a car, are ready to buy and would like to know if your current price offer can be beat for an immediate sale. Most dealers will beat the price if they believe you are a serious buyer.
Paperwork
Once you work out a price for your vehicle and go to the dealer to complete the purchase, you still have more negotiating to do. Go over your paperwork thoroughly. Make sure there are no extended warranties or extra add-ons tacked on without your approval or knowledge. The dealership's finance department, which is where you complete your purchase paperwork, is often the most financially successful because of after-market sales. The finance manager will try to sell you warranties, GAP (guaranteed auto protection) insurance or other add-ons. All prices are marked up. Offer half price for any item you're interested in. Of course, the items are not marked up as much, but with negotiations, you can always offer more, you cannot offer less. Dealers also like to show the item's cost in the form of monthly payments, or cost per month. Find out the real cost and negotiate it down.
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