How To Negotiate The Best Price On A New Car
Negotiating your best price for a new car starts with an understanding of average transaction prices – before incentives – for the new cars you are considering. Dealer discounts and manufacturer incentives are driven by supply and demand. Chose a car everyone wants and your price will be closer to MSRP. Choose a car that dealers have a lot of and you’ll pay less.
How you start price negotiations will have a big impact on your total purchase price. Negotiating a car purchase is a lot like playing tic tac toe where the player who makes the first move has a 71% chance of winning or tying. What do you need to confidently make an offer? Insights into the average transaction price (MSRP – discount), available incentives, trade-in value, taxes, license and fees. Be ready to put your offer on the table first to save money and hours sitting in a dealership.
Your “offer” should be for the total purchase price: selling price (MSRP – discount), incentives, net trade-in value (trade value – payoff), taxes and fees. Don’t negotiate total price and monthly payments together. Settle on total price, then move on to monthly payment terms. Most importantly, don’t negotiate just monthly payment. It allows dealers room to increase your total purchase price. Once you get to a fair total price, then move on to payments. Dealers price people, not products, so beware the suggestion you switch to a different car than the one you chose. While it could benefit you, more often than not it benefits the dealer more. They may want you to buy a car too long in inventory, ordered with an odd mix of options or that has been a dealer demonstrator.
Purchase price is always the total price. The selling price, incentives, net trade-in value), taxes, license, registration and dealer document fees. Whether it is your first day shopping or you are reading this while sitting in a dealership, find your total purchase for any new or used car in minutes at vinadvisor.