How to Negotiate Vehicle Price

All cars have a manufacturer's suggested retail price (MSRP), but a smart negotiator can get the vehicle for much less unless it is a very rare or popular model. Otherwise there is some negotiating room. Exactly how much will depend on the dealer's true cost and any special factory-to-dealer incentives, as well as the time of month and year. However, there are some general negotiation techniques that will help you get the best price under whatever circumstances you make your purchase.

Instructions

1

Calculate the dealer's actual cost for the vehicle. Negotiation Dynamics explains that you can do this by looking up the invoice price online and subtracting the holdback and any current factor- to-dealer incentives. All of this information can be found on Kelley Blue Book, Edmunds or similar automotive websites. The cost provides a general baseline for your offer.

2

Look up current prices being paid by buyers in your area. You can find this information on the U. S. News & World Report car ranking site and in the consumer forums on Edmunds. Vehicle prices can vary by region, so you will be able to tell if local consumers are paying above or below the invoice price.

3

Formulate your offer based on your research. Print out all the material you used to calculate your price and put it in a large envelope or folder so you can bring it to dealerships when you are shopping. This will show the salespeople that you are a serious, informed buyer.

4

Search inventory at nearby dealerships through their websites. You can narrow down the locations that have the type of vehicle you are seeking, including your preferred options, without leaving home.

5

Visit one of the dealerships that has a vehicle in which you are interested. Bring your research envelope or folder, carbuyingtips.com advises, and make your bottom line offer. Do not banter about the price. Just state your offer and wait, Negotiation Dynamics advises, deflecting any attempts to get you to raise it.

6

Walk out of the dealership if the salesperson does not agree to your price and keeps shuffling back and forth to the manager. Dealers will try to wear you down by dragging out the process. Negotiation Dynamics recommends telling the salesperson up front that you will only spend a certain amount of time at the dealership. Get up and leave if you have not made a deal when it expires. Often, the salesperson or manager will run after you and suddenly be able to give you your price.