6 Tips for negotiating a better price on a car
Buying a new vehicle is an exciting experience, but it’s easy to get caught up in the cutting-edge technology and new features. However, it’s a big expense and costly commitment, which is why it’s important to negotiate the best deal for your finances.
Having options, patience and persistence will help you get the best price on your next ride. Here are our top tips for navigating the negotiations and getting a great deal that suits your terms and your pocket.
Negotiating starts before you take the test drive
Getting the best deal starts with knowing as much as possible. Do your research about the specific car/model, the price range and who/where they sell it (private sellers and dealerships) so that you can accurately compare prices and know what you can expect.
Give yourself options
Don’t just settle on a single model/car type and a single seller. Look at alternative options and brands for what you’re looking for and where you can get it. Having more to choose from means you won’t get boxed in by a single product and price.
Shop around
This requires some patience and not buying it in a hurry. Giving yourself time will help you make the most informed and best decision for your needs and your budget. You also reduce the risk of making a decision you’ll regret later.
Also, if you seem too eager, you’ll have shown all your cards to the salesperson, and you’ll be at a disadvantage when it comes to confirming the price.
Know your budget and stick to it
Setting a price ceiling is important so that you don’t exceed the maximum amount you can afford to spend. Remember to include registration fees, insurance, maintenance and fuel cost in your budget to ensure you don’t overstretch your financial capabilities.
Ask them to sweeten the deal
Sometimes dealers won’t be able to cut the price down further, but they have some leverage when it comes to extras. For example, if you’re buying a second-hand car, ask them whether they’ll put new tyres on as this will save you the cost of doing it later. Can they throw in a free maintenance plan or extension?
Don’t be afraid to walk away
To get the best deal, you need to have patience and persistence. If the price or terms don’t suit you and your budget, it means it doesn’t suit you. The type of vehicle you like is an emotional decision, but big purchases need to be based on the realities of what you can afford and what is best for your financial health.
Remember: There will always be other cars and other dealers, so be polite but firm and stand your ground.
Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.