How to Negotiate Car Price (From Negotiation Experts)

When you find your dream car after weeks of searching, you want to make sure you are getting the best possible value for your money. This is where negotiation comes in.

It turns out, though, that only 29% of used car buyers always negotiate the price, according to a 2023 survey. Those who don't negotiate said they feel too uncomfortable to do so or worry about offending the dealer. We are here to tell you that negotiation is a normal part of used car purchases and that with some preparation and best practices, you can put yourself in the best possible position for the bargaining stage.

Why Negotiate Car Price?

A new car is a hefty purchase; probably one of the most expensive things you will ever buy. In almost all cases, you will lose money on your car when you resell it in the future. It makes sense to try to secure a lower price now if you can.

The other reason to negotiate your car price is that car dealerships may try to sell the car for more than it is worth. After all, they need to make a profit to keep their business viable. You can preempt sales tactics or potential lowballing by going in with a well-thought-out negotiation game plan. Here is what to do before, during, and after your negotiation.

Before You Negotiate Car Price

Before you even begin negotiating, you need to make sure that the car is worth negotiating over. After all, salespeople are paid to make the vehicles they sell look as attractive as possible, even if, in fact, there are a few bumps under the bonnet. Here's how to put that into action.

1. Research the market

Preparation is key in negotiation. You will not know whether the advertised price is fair market value unless you research the going rates of similar cars. Start by comparing prices of the same make, model, year, and mileage across different dealers, private sellers, and online platforms. Look beyond the sticker price: Is a warranty offered? Are any services or optional extras bundled in? These may impact list prices.

2. Decide on a budget

Be clear on what you're prepared to spend versus what you'd like to pay. These numbers should not be the same. Keep your maximum budget to yourself, leading instead with a figure that gives you room to move if needed. This helps protect your negotiating position and gives you wiggle room to trade later.

Also, try not to get anchored by the asking price. If you have done your research, you will know what is realistic. And don't forget to factor in ongoing costs like car insurance and maintenance!

3. Check for faults

A car might look good on paper or in photographs online, but fail to stand up to scrutiny in person. Check that everything is in order by walking around the vehicle and inspecting it from all angles. Open the bonnet to check for internal faults. Perhaps most importantly, take it for a test drive. It is also worth requesting the full service history to verify that the vehicle has been properly maintained.

Minor issues might not be enough to deter you from buying the car, but they could be used as leverage to get a better deal when you start negotiating. For example, a few scratches on the bodywork or worn tyre tread represent real costs you'll need to address after purchase. When you sit down to negotiate, you can point to these specific faults and request a price reduction that reflects the cost of repairs.

During Negotiation of Car Price

Now that you have conducted your research, you are ready for the negotiation. Here are some best practices, according to negotiation experts at Scotwork.

1. Time it right

Dealers are more flexible when they’re under pressure to hit targets, usually at the end of the month, quarter, or year. This time pressure could work in your favour as they are more likely to want to sell the car quickly. You’ll also have more room to negotiate midweek or during quieter months.

Note that some dealers might offer price matching if you have found a better deal elsewhere; another reason to get your timing right.

2. Stay calm

Confidence is essential for successful negotiation. Why? Showing confidence with your body language helps you to ensure that you are making demands, not requests. Even if you don't feel confident, you need to act it. Presenting yourself as a serious buyer who has done their research will give you more negotiating power throughout the process.

3. Take your time

Salespeople often use urgency and overfriendliness to steer you towards a deal that suits them. Expect it. You need to learn to stay focused on objectives, not the atmosphere. That means not rushing decisions. Use silence as a tool to claim your negotiating power if needed, not being afraid to pause or take a step back if things start to move too quickly.

4. Look for flexibility

Negotiation is not just about your position. It is about spotting movement from the other side.

When you verbalise an offer, pay attention to how the dealer responds. Hesitation, vague language, or conditional statements like “we might be able to” or “if you’re serious, I could ask” are often signals that there is room to move.

If they cannot adjust the price, however, they may be open to trading value elsewhere. That could mean better finance terms, a stronger part-exchange offer, or added extras.

Important: Never reduce your price position without getting value in return!

5. Trade value

Negotiation is about so much more than money. It is about trading value. Consider what you’re offering and what you can ask for in return. That could include:

A better part-exchange price for your current vehicle
More favourable finance terms (interest rate, deposit, repayment period)
Extras like warranty extensions, free servicing, or new tyres

Decide in advance what areas you are willing to be flexible in. If you aren't willing to be flexible on the price for the car sold, consider other ways that you can offer value. Would you be willing to accept a finance deal rather than paying cash, for example?

Sealing the Deal

Once you are happy that you have secured a fair deal, it is time to close. Make it clear you’re ready to move forward, but only on the terms discussed.

Get it in writing

One of the most important things is to get the deal in writing. That includes the agreed price, payment terms, extras, warranties, and part-exchange values. Everything. Most dealerships will update the formal contract, but it’s up to you to double-check it's accurate before signing.

And finally...

Be Prepared to Walk Away

Try not to become emotionally attached to one vehicle, as this weakens your position. If the negotiation isn't going well, you should always be prepared to walk away. There are plenty more cars on the road.

That being said, following evidence-based negotiation tips increases your chances of driving away with a fair deal. If you want more guidance in implementing these negotiation tactics effectively, Scotwork's training courses can help you build your confidence. Though our teachings are designed to be applied in business and professional settings, we firmly believe negotiation skills are for everyday use.