How to negotiate when buying a car.

F7 | LIFESTYLE by Andrew Pearmain
Mar 21, 2015
2 min read

Anyone can and should haggle. Money Advice Service research reveals 64% of those who tried to negotiate when buying a car were successful, with just 16% of those failing to bag a discount. So read our tips for negotiating car prices.

Negotiating the price of a new car with a dealer

Make sure you've worked out what you can afford and have done plenty of research into the car you’re planning to buy – including the list price.

Whether you’re paying cash, part exchanging or organising a finance plan, car dealers’ prices aren't fixed. So arm yourself with our top tips below.

When talking to the salesperson

Be friendly and polite, but never let the salesperson know your maximum limit. If you’re a cash buyer, don’t tell the salesperson this straight away. Dealers make bigger profits on finance deals, so let them bargain the car’s price on that basis. You can then decline the finance deal later in the process.

Start off by stating an amount lower than what you’re actually prepared to pay – you can then gradually increase it if necessary. When you make an offer, don’t speak again until the salesperson replies. Be as positive as possible about your aims. For example, don’t say “Can I have a discount?” Instead, ask “How much discount will you give me?” Some negotiators start by saying they’re not prepared to pay the price advertised, but remember they ARE there to do a deal! If you’re struggling to get a discount but you want the car, offer to close the deal there and then if you can both agree a price.