Get Your Next Car At A Better Price With Our Top Tips

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1. Introduction
2. What Paperwork Do I Need To Buy A Car?
3. Do Cash Buyers Get Better Deals?
4. Tips For Negotiating The Price Of A New Car
5. Do Your Homework Before You Step Foot In The Dealership
6. Time Your Purchase For Maximum Leverage
7. Be Ready To Walk Away
8. Start Low, But Be Reasonable
9. Don't Just Focus On The Price
10. Play Dealers Against Each Other
11. Be Smart About Finance Deals
12. Don't Fall For Sales Tricks
13. Get Everything In Writing
14. Our Final Word

Introduction

Let’s be honest; haggling over the price can feel like a battle of wits. Dealerships have their tactics, but so can smart buyers. If you go in prepared, you can walk away with a much better deal than the windscreen price suggests; but how do you negotiate with confidence? 

In this guide, we’re sharing some of our top tips to help you drive down the purchase price of your next car, so you can get the best deal possible. First, though, let’s look at some of the basics:

What Paperwork Do I Need To Buy A Car?

To buy a car you’ll need:

• Driving License: A valid license proves you’re legally allowed to drive. Remember your license on your first visit too, if you’re considering a test drive.
• Car Insurance: You don’t need insurance to shop for cars, but you will need valid cover to collect and drive your new car home. Speak to your dealership if you need ‘driveaway’ insurance, which will cover you for a limited time.
• Road Tax: Road tax isn’t transferrable, make sure you’ve taxed your new car before driving it away. If you’re buying through a dealership they will arrange this as part of your purchase process.
• Utility Bills & Bank Details: If you’re purchasing using finance, it can help to take proof of income and the usual three months' bank statements to speed up the application process. You’ll also need bank details for where you’d like your application (and future payments) to come from.

Do Cash Buyers Get Better Deals?

Contrary to popular belief, cash buyers do not get a better deal when buying their next car.

Often, dealerships are incentivised to sign buyers up to finance and other optional extras and, whilst these should be thoroughly explained and researched before purchase, aren’t necessarily a bad thing. 

Cash buyers offer very little in the way of commission for a car salesperson, which usually means much less wiggle room on the buying price of your next car; if you’re expecting a heavy discount for being a cash buyer, you’re going to be disappointed.

Tips For Negotiating The Price Of A New Car

Do Your Homework Before You Step Foot in the Dealership

Heading to a dealership before you’ve done any research is a recipe for disaster. It’s almost certain you’ll get carried away and end up paying over the odds. 

Before you view any car in person, look into the dealership, pricing and any offers that may be available. Here’s a few things you should know before your trip:

• The car’s true market value: Sites like Auto Trader are a great place to look at other cars of similar make and model, their average selling price and how much others are paying; they even have a ‘high’ and ‘low’ price rating so you can gauge at a glance whether you’ll be paying too much.
• Competitor pricing: Found a similar car from a rival dealership that’s cheaper? Print off the information! At worst, the car dealership will be obliged to explain why their car is priced more highly, at best, they may give you a discount. Dealerships hate losing customers to rivals, so if they’re offering a better deal, use it as leverage.
• Discounts and incentives: Check whether there are any manufacturer discounts, seasonal promotions, deposit contributions or loyalty bonuses available before your trip. We recommend looking at the dealer’s website as well as the manufacturer’s site of any specific model you’re considering.

The more information you’re armed with, the more confident you’ll be when visiting a dealership.

Time Your Purchase for Maximum Leverage

When you buy can impact the price you pay. Salespeople have monthly and quarterly targets which, if they’re close to meeting, could mean a great deal for you.

Visiting a dealership towards the end of the month or quarter (up to five days before) will put you in a better bargaining position, as the salesperson may be incentivised to get your deal ‘over the line’. They could offer you bigger discounts or more complimentary extras.

Research the particular model you’re interested in, if there are any facelift or updated versions on the horizon, it can pay to visit just before this time, as, again, dealerships will be looking to clear their old stock to make way for the new. Remember though, if this is the case, a newer release of your car’s make and model could mean greater depreciation for you, read our guide; Why Do Cars Depreciate? to find out more.

Source: https://customer.vwfs.co.uk/vwfs-uk-blog/vehicle-finance---customer-advice-/how-to-save-money-when-new-license-plates-come-out.html

Similarly, March and September are great months to hunt for a new car, head to the dealership and negotiate a better-than-screen price as new number plates are released. Anytime there’s a new registration on the horizon, dealers are eager to offload older models, meaning you can negotiate a better price.

Our takeaway advice is to be on the lookout for a new car, but be flexible in your timing, if you are, you’ll have more opportunity to get a bargain.

Read More: Planning Your Perfect Dealership Visit

Be Ready to Walk Away

The biggest mistake buyers make? Getting emotionally attached too soon. Salespeople can sense when you’re desperate and will use that to their advantage. Instead, be prepared to walk away.

If the deal isn’t right for you, thank the salesperson and leave. Often, you’ll find extra incentives on offer, whether a lower price or more extras to convince you to stay. Remember though, you should never be pressured into buying.

Remember to take your time when car shopping, don’t be rushed by any ‘one day only’ deals (which can almost always be made at a later date) and always have other options available, not just of the same model, but other potential makes and models too; otherwise, you could lose some bargaining power.

Start Low, But Be Reasonable

When it comes to negotiation, let the dealer make the first move. If they ask what you’re willing to pay, flip the question back and ask ‘What’s the best price you can offer?’

This puts the pressure on them. Once they give you a price, counter with an offer below what you’re willing to pay. This gives you room to negotiate upward while still landing a great deal.

It’s worth noting though, that you’ll need to be respectful. It might be tempting to make a ridiculously low offer, but you run the risk of ‘shutting down’ the deal.

Don't Just Focus on the Price

Car dealerships make a lot of money on extras; finance packages, service plans, extended warranties, and GAP insurance (of course, you'll save more buying online!). If they won’t budge on the car’s price see if you can negotiate on some extras.

Sometimes, these add-ons can be worth hundreds of pounds—so it’s worth pushing for them.

Play Dealers Against Each Other

One of the easiest ways to get a better deal? Get multiple quotes for similar cars.

Most dealerships will try to undercut the competition, getting you a better deal in the process.

Our Advice: Don’t lie about competitor pricing; some dealers will ask to see proof. Instead, actually get written quotes before negotiating.

Be Smart About Finance Deals

If you’re buying your next car using PCP (Personal Contract Purchase) or HP (Hire Purchase), keep an eye on the interest rate.

A lower monthly payment isn’t always a good deal, with longer terms meaning you could be paying more overall due to interest.

When negotiating your finance deal, here are a few things to consider:

• Total cost: Focusing on the total cost, instead of monthly repayments is vital. Some dealerships will spread your deal over a longer term to make it appear cheaper.
• Interest rates: Remember, the bigger the APR, the more you’ll pay on your deal. Ask for the lowest rates with some manufacturers offering 0% finance deals.
• Deposits: Paying a bigger deposit can open up better finance deals as well as lower your overall interest.

Don’t Fall for Sales Tricks

These days car selling is pretty transparent, with the rise of internet shopping and savvy consumers dealerships can’t get away with the sales tricks they may have used in the past. That said, it still pays to be vigilant if you want the best price on your new car.

As we’ve said already, be wary of any deal that a) sounds too good to be true and b) requires urgency. Often, dealerships will imbue a sense of urgency to get you to sign up; which could mean you pay over the odds or suffer buyer's remorse at a later stage.

Be aware of each element of the buying process and negotiate them separately maximising your overall deal. For instance, you may think you’re getting a better deal on the purchase price of your new car, but it could be offset by the part exchange price, meaning overall; you’re losing out.

Whilst it’s always nice to get a little more spec, be mindful of a salesperson pushing you into a more expensive model. It may only work out a little more per month, but £20 alone means you’d pay almost an extra £1000 over a four-year deal!

The best way to avoid sales tactics is to have your budget in mind, both total and monthly; then stick to it.

Read More: Get it right, first time: Top Car Buying Mistakes To Avoid.

Get Everything in Writing

Once you’ve agreed on a deal, don’t sign anything until it’s in writing. Make sure:

• The final price matches what was discussed.
• Any extras (free servicing, warranty, etc.) are listed.
• Finance terms (if applicable) are clearly stated.

If something isn’t in writing, it doesn’t exist; so double-check before signing.

Our Final Word

Negotiating a car deal doesn’t have to be stressful. With the right preparation, timing, and mindset you can save thousands. Remember to do your research, time your shopping just right and never rush into anything you’re not 100% sure of.

We hope our guide gives you the confidence to negotiate the best deal on your next car. By following these simple tips you can save some money and feel happier with your deal.

If you think we’ve missed anything, get in touch with Luke using our social media platforms. If you’ve enjoyed reading this, be sure to share it with your network.

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