How To Negotiate For The Best Price When Buying A Car
08/21/2023
Buying a car is a big financial investment. In order for you to get the best price possible, negotiating will be a key part of the car buying process.
Before you even step foot in a dealership, you have to have the knowledge and the drive to negotiate. Here are the crucial steps to successfully prepare for your vehicle search and price negotiation.
DO YOUR RESEARCH ON VEHICLES
Your first step on the road to a new car is to get an idea of what vehicles will fit your lifestyle and budget. Then, you can research the average price of the vehicles you have in mind. Find the manufacturer’s suggested retail price of the vehicles you’re interested in. To find the value of cars, you can use websites like Kelley Blue Book and Edmunds.
The more you know when you walk into a dealership, the more confident you will be in your ability to negotiate for a fair yet realistic price.
GET PRE-APPROVED
Walking into a car dealership with pre-approved financing gives you more negotiating power and helps you avoid having multiple inquiries on your credit report. At INOVA Federal, we offer competitive rates for auto loans, up to 125% financing for the purchase of a new or used vehicle, and loan terms of up to 84 months on new or used vehicles.
Getting pre-approved allows you to know exactly what you can afford and can help you stay firm on the price you’re willing to pay. You can even use our financing calculators to estimate monthly payments.
GO TO VETTED DEALERSHIPS
Ask your friends and family what car dealerships they’ve worked with in the past. Find out if they had good experiences negotiating. Read online reviews of dealerships, too. It’s best to avoid dealerships known for being extra pushy or that have a bad reputation.
Dealerships will be happy to hear that you specifically chose to come to them based on word of mouth and because they did business with people you know. It can help to walk into a dealership known for being good to work with, but still stay vigilant when car shopping.
USE YOUR KNOWLEDGE TO BARGAIN
To get the best price when car shopping, get offers from multiple dealerships, use your knowledge of the prices of the cars you’re looking at, and remember that you can walk away from bad deals or pushy salespeople. Since you’re preapproved, you won’t have to barter on monthly payments, loan terms, and interest rates, but you can go to multiple dealers to try to get an even better deal than your pre-approved financing.
BE OK WITH WALKING AWAY
Buying a car can come with a lot of pressure from salespeople, and you might be in a time crunch to get a new vehicle. But if you’re sure that you want to stick within your budget and are confident in what a fair price is, be willing to walk away if a dealership won’t offer you a price you can afford. Don’t be afraid to ask for what you want — ask dealerships to beat the prices you’ve gotten from others.
WORK WITH INOVA FIRST
When you’re ready to apply for an auto loan, just click, tap, or call with INOVA Federal. You can apply online, by calling 800-826-5465, or by visiting one of our branches.
When you reach out, let us know whether you’re shopping for a new or used vehicle, what type of vehicle you’re looking for, what you can afford to pay every month, how quickly you’d like to pay off the loan, and how much you can afford for a down payment.