Auto Loan Advice
 
TOOLS
PDF
Print PRINT
E-mail EMAIL
Tips on How to Haggle a Lower Price on Your Next Car
By Liz Opsitnik
Monday, 21 July 2008 11:23

Good Housekeeping magazine has a story on their Web site about how to haggle. Not only does it address consumers' fears about the process, but it actually tells you what to say. And it tells you what the salesperson at the dealership will probably say back to you throughout the conversation.

Here are some tips from the story:

Research rebates, loans, and MSRPs (manufacturer's suggested retail prices) at auto sites like edmunds.com or Kelley Blue Book. Print out what you've found and take it to the showroom.

Check dealerships' Web sites for their online price quotes. Then, start e-mail negotiations with an Internet manager. If you wind up talking face-to-face, bring your research.

Time your visit. Salespeople earn commissions partly based on the number of vehicles they sell. So plan to show up on a weekday morning, when customers are rare.

Calculate your opening offer. Phil Reed, consumer-advice editor for edmunds.com, suggests taking the best price you've found, subtracting rebates, and knocking off $500.

What to say:

Dealer: The MSRP is $25,920, but we're prepared to sell it to you for $25,120.

You: Actually, I was thinking more along the lines of $20,000.

Dealer: That's not possible. We pay the manufacturer $23,948, so I can't go below that and still make a profit. The carmaker is offering $500 cash back, so I can go a little lower...to $24,620.

You: But the Web site I searched says there is a $4,500 unadvertised rebate that's paid from the manufacturer to your dealership. So you're not losing out by passing that discount along to me.

Dealer: Part of the dealer cash was factored into my original offer. I know you want this car. How about $20,920?

You: I also got online quotes from two other dealers, both for about $20,500. I would rather buy the car here, closer to home. But I'd need you to at least meet their offers.

Dealer: I can do that.

You: Great. We've got a deal.

The story also tells readers how to haggle everything from appliances to lower credit card interest rates. Click here for the full story. 


More Auto Loan Advice ...
  • How to Lease in a Changed Leasing Market
    As GM, Chrysler and Ford cut back on leasing, or discontinue it totally, consumers are left wonderin ...
  • Be on the Lookout for Dealers' Sales Tactics
    You’re trying to get a car at a great price while at the same time, the car salesperson and de ...
  • Tips on How to Haggle a Lower Price on Your Next Car
    Good Housekeeping magazine has a story on their Web site about how to haggle. Not only does it addre ...
  • Tight Credit Troublesome for Auto Financing
    The New York Times has a great story on their Web site today discussing how the credit crunch is aff ...
  • Trapped by Web Loan With the 842% Interest Rate
    Yes, you read the headline right. Web loans with 842% interest rates do exist, with some even as hig ...
  • Watch for Credit Score Differentiation
    There was an article in the Wall Street Journal over the weekend about credit scores and how they di ...
  • What is Gap Insurance?
    Can you really buy a new car, drive it off the lot and then total it in an accident on your way home ...
  • From No Credit to Good Credit
    Pierre Money Mart has done a great article on how to build credit when you're starting from scratch. ...
  • Basics for First-Time Auto Loan Buyers
    Most people’s first car is a hand-me-down or a junker. You probably didn’t have to take ...
  • Buying a Car? Get That Credit Score Up First!
    With many lenders tightening their requirements before they give you a car loan, it's in your best i ...
   
 
Loan Tools

Get a Loan
What Car Can You Afford
Auto Loan Calculator
Free Car Quote

Oil Prices Fall to Lowest Level in Three Months
Oil prices fell to the $111 level Friday, reaching their lowest point in more than three months, reports the AP and Yahoo. The dollar gained some ... Read More

Ford to Build New Luxury Crossover
Ford is expected to announce today that it plans to build a new, seven passenger luxury crossover, reports the Wall Street Journal. The new Lincoln M ... Read More

Cadillac Unveils New Luxury WagonCadillac Unveils New Luxury Wagon
After the station wagon’s popularity slowed down in the 80’s, it was replaced by the SUV. The SUV was king in the 90’s.  ... Read More

New Car Price Quote
Make:
Year:
Model:
 
Auto Loan 101's