Knowing how to negotiate car price is critical when buying a new or used car, or when trading in or selling your old car, and negotiating car price does not need to be complicated. By taking a common sense approach to research, by understanding market factors that drive car prices, and by realizing that your time has a monetary value, you can quickly and successfully negotiate car price.
First, establish what your time is worth. The answer is different for everybody, but the longer you take negotiating car price, the more time you are spending working the numbers when you could be doing something fun with people you love.
Next, realize that the laws of supply and demand dictate car price, and these laws are valid at the local, regional, national, and global levels. If a devastating earthquake strikes Japan, halting the manufacture of parts and stopping assembly lines, the event has a ripple effect on the prices of affected vehicles all around the world. In a local level example, strong consumer brand preferences might dictate special rebates on less popular models that are in significant supply and window sticker markups on more popular models that are in short supply. By employing common sense to understand the fundamentals of supply and demand and to recognize how they impact car prices is important to successfully negotiating car price.
Another tip is to negotiate car price with the right person. You want to work as closely with the decision maker as possible, whether that person is the sales manager at the dealership, the proprietor of the used car lot, or the owner of a car being sold privately. Working with people who cannot make the final decision when negotiating car price costs you money in terms of what your personal time is worth.
Finally, performing simple research can help you establish a reasonable target when negotiating car price. Below, we will explain how to negotiate car price for a new car, and how to negotiate car price for a used car.