10 ways to get the best price at a car dealership

To get the best deal at a car dealership, it’s not just about the price; you also need to think about extras, timing, and how you present yourself to the salesperson.

Boost your negotiating skills by following our 10 tips on getting the best price when haggling at a dealership.

Your guide to negotiating the best car price

Are you considering buying an electric or hybrid vehicle? Perhaps you’d prefer a newer, low-mileage car with a better specification? No matter what motivates you to buy a car, it’s essential to have a solid plan in place to secure the best possible deal.

Here are our top 10 tips for getting the best price at the showroom:

1. Do your research

Start by researching several cars online that you like and that meet your preferred specifications. Look up the makes, models, trims, and colours available, as well as the manufacturing dates.

You can also strengthen your negotiating power with the salesperson by noting details such as the engine size, fuel type, and transmission type. Read any reviews on the model’s reliability, running costs and depreciation. Are there any common technical issues or recalls that you would like to inquire about?

Read our article on the most reliable used cars with high mileage.

Visit several dealerships to see what they have on offer and how they conduct business and interact with customers.

2. Decide on a budget

Before you step into the showroom, you also need to decide how much you want to pay. You should have noted the market prices of your preferred vehicles through research.

Now use your knowledge to ensure your choice matches your budget and the car’s potential running costs, such as fuel, insurance, MOTs, and repairs.¹ Later, once you’re in front of a salesperson, you can keep your top price in mind as you discuss your choices.

3. Compare prices

You can compare prices on various platforms, such as Auto Trader² and Parkers,³ to help you decide which car you want, its retail price and any extras.

Several online used car retailers (think Cazoo, CarWow and Cinch) include pricing and delivery options. You could also check comparison sites like Red Book and What Car? Another option is to visit manufacturer-approved schemes if the makers of the cars you’ve shortlisted have a manufacturer’s franchised dealership.

4. Choose a good time to visit

Salespeople need to meet targets at certain times of the year and will offer discounts and extras around those dates. So, time your visit to a dealership around their monthly, quarterly or annual targets.

Another beneficial time to visit a showroom is when dealers clear their seasonal stock to make room for new models. It’s not just cheaper to buy woolly jumpers in the summer. You could bag a bargain convertible if you look for one in winter or grab last year’s excellent model at a reasonable price when a new one hits the streets.

5. Don’t start haggling at too low a price

To start connecting with the salesperson in the showroom, be genuinely interested in a used car. Don’t undo the rapport you’ve created by starting with a price that’s too low. Your expectations should be realistic. After all, the dealer has a right to make a profit.

6. Be pleasant

It doesn’t cost anything to be polite and friendly when you talk to the dealer. In fact, it could pay off with discounts or extras once the dealer realises you have done your homework, are pleasant to deal with and are serious about buying a car.

7. Don’t let on that you’re a cash buyer

Although it’s tempting to reveal that you’re a cash buyer, MoneyHelper⁴ suggests you hold fire. It’s wiser to let the sales exec think you’re taking finance at first because they typically earn more profit from finance deals. Agree on a price, and then say you’re paying in cash.

If you still want the car but a discount isn’t forthcoming, you can still offer to buy it with cash. A quick sale may be in the dealer’s best interest as it’s less hassle.

8. Remember the extras

Buying a car is a significant investment, so consider asking the dealer to include a few add-ons. Maybe they’re willing to throw in metallic paint, a dashcam or a full tank of fuel to seal the deal. Sometimes it pays to be cheeky!

Try asking for extras if the dealer won’t reduce the price or negotiate on the finance.

9. Haggle over finance

If you choose to pay using the dealer’s finance scheme, you can still negotiate the terms. Some dealers will reduce the annual percentage rate (APR), which means you pay less in total once the loan ends.

Other tactics include asking for a loan term that suits your budget or increasing the deposit amount, which allows you to pay less per month.

10. Walk away if you’re not satisfied

Some sales teams will suggest a discount as a last resort to save a sale if you say you lack the money to buy the car and are leaving. However, many sellers are aware of this negotiating tactic and may attempt to avoid offering a discount. Instead, they may ask you for your idea of a fair price or offer other alternatives.

One way to get a fair price is to be honest about the prices in other garages. You should be aware of the actual market price, as you visited dealerships during your research.

Learn about Rias car insurance. 

Sources

1. https://tfl.gov.uk/modes/driving/ultra-low-emission-zone/cost-of-owning-a-car
2. https://www.autotrader.co.uk/#:~:text=Autotrader%20UK%20%2D%20New%20and%20Used%20Cars%20For%20Sale
3. https://www.parkers.co.uk/cars-for-sale/used/
4. https://www.moneyhelper.org.uk/en/blog/car-finance/how-haggling-can-help-you-pay-less-for-a-second-hand-car#:~:text=If%20you're%20a%20cash,help%20you%20agree%20a%20price.