31 May 2022
How to Negotiate the Price of a Car
When it comes to buying a new or used car, many people think the price is set however there is always wiggle room even at a dealership. Portadown Credit Union have compiled some tips to get the best bargain.
Know the market value of the car
A fantastic way to get started is to know the market value of the car you’re looking at. Many car dealerships online provide this information and show if the car’s price is good, average or poor compared to others sold. It takes all the elements of that specific car into consideration such as mileage.
Although not all dealership/ used car websites provide this feature, there are many websites available that use the registration of the car to value it. Look for a version that asks for the mileage too as this will make the estimate more realistic. Mileage will always be stated on car ads so this is easy to find.
Do your research
Always look into the specific car model you are after and familiarise yourself with its features. Doing so, will come across that you are a car enthusiastic and will deter someone trying to tell lies about the vehicle. This step will also mean they’ll likely not push for the higher end of the price they stated.
Have a budget and don’t exceed it
Think long and hard about your budget. Is it something you can afford? And if you’re taking a loan out for it, is the monthly repayments something you’re willing to deduct from your discretionary income.
Once a budget is set, even if a car is advertised slightly above the budget, go view it as there is always room for negotiation. Never state your max price initially, let them show you the car and after a test drive, if you like what you see, state a price under your budget as they will unlikely take your first offer. On the second attempt, state this is your final offer and if they don’t accept it. Walk away and continue your car search. There is always a possibility they’ll change their mind as they see you leave.
If you’re buying a car from a dealership, they will always offer add-ons to the car which will significantly increase the price such as a warranty and prepaid car services. If you do decide to go for any, be sure to read the terms and conditions and once again negotiate a price especially if you’re purchasing more than one add-on.
When purchasing a car, the nicer you are, the more likely someone will be happy to go that little bit lower on price. If your attitude comes across rude, you can guarantee they aren’t going to go out of their way to help you.
If you’re interested in purchasing a car and would like to spread the cost over a time period that suits you.
Check out our loan calculator or call us on 028 3833 5104.
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