How to Bargain to Get the Best Price on a Car You Want

Most individuals have an idea of what they are looking for when it comes to a car or truck. When I purchased my vehicle in 2004, I knew I wanted a small car, one with a large trunk space, and the color mattered to me (go figure, this was my first car purchasing experience!). Everyone is different in what priorities they set for a vehicle, but the method for getting the best price on a car or truck is all the same-- bargaining. If you can afford to pay the sticker price, you may not want to deal with the hassle of bargaining. You should be aware that the sticker price is the invoice price (amount the dealer paid the manufacturer for the vehicle) plus the dealer's commission. Meaning, this commission can be an oversight, and gorge your pockets more than you think. Instead look to bargaining, it can be simple, if you follow these steps:

Day 1: Research online for pricing in the market and/or by private seller (this is useful if you are looking into a used car). Also, ask others who have purchased the same car recently what they paid for. There are many forums dedicated to cars and individuals looking to help. You are only as great as a bargainer if you have evidence to back up your price suggestions.

Day 2: Practice! Practice! Practice! Spend a weekend (or a couple, depending on your level of skill) at the swap meet to hone in your bargaining skills, or use friends/family to practice. This will help you prepare for different seller tactics and how to get around them to get the price you want.

Day 3: Get your auto financing done at an independent lender before going to the car lot. This helps you focus on one goal- the price, not the financing. If you choose not to follow this step, you will be arguing over the pricing, then have to bargain with the financing, which turns into monthly payments, term, and interest. When you are finished bargaining on the basis of term, interest, and monthly payments, you may find out that the original price you bargained for has increased and/or been forgotten.

Day 4: Go to the car lot, with the mindset that this could take awhile. Keep yourself fed and hydrated from the start. Have a big breakfast, or lunch, and bring a water bottle. At any point you feel exhausted, take a break-- go to a nearby coffee shop, go home, or go get some food. Keep yourself energized.

• Let the bargaining begin! Start from the invoice price or lower. Tell the dealer that you only have XX,XXX (the invoice price) amount to spend. The dealer will most likely give you an excuse to why they can’t sell the car for that low. If you must, slowly work your way up to the maximum you are willing to pay (at all times, keep this number to yourself). If you received financing beforehand, your maximum will generally be the total amount financed that you were approved for.
• Walk away. An excellent bargainer knows when it is the right time to walk away. If it reached above your maximum, than walk away. Before you do, it may be beneficial to hand them your phone number to call if they decide to go with the price you want. Most likely, you will be receiving a phone call in a few days. Warning: only do this when you are serious about the car purchase, otherwise you will get calls consistently hounding you to buy the car.
• Be forwarned. You may not get what you want at that low of a price. Be somewhat realistic, since both sides have to compromise; that means if your price offer is too low, you may not be able to get the commodity you need. What you can do is start the haggling process over, but at another dealership. This enables you to learn from your past experience, and still have the power.

Bargaining is tedious, but the effort will reap rewards-- a brand new car with a great smell!