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How to Negotiate a Car Deal (And Save Big)

How to Negotiate a Car Deal (And Save Big)

car-buying will always suck because
every time you buy a car you’ll never have a clue if you got the best deal or
if you didn’t there’s really no way to know how much money a dealer’s making
off of you every time you buy a car but in this video I’m gonna cover the three
key steps to negotiating a car deal so that you can at least get the best deal
possible so if you follow these steps in order you’ll at least be more prepared
to negotiate a car the next time you need to and you might just learn
something as well now if you just stumbled across this video I’m Jason
with the honest finance Channel I like to talk a lot about different financial
subjects so if you’re interested in this type of content feel free to subscribe
or at least give the video a like and now on to car buying negotiation now the
first key step in order to properly negotiate a car deal is research what
I’m saying here is that you have to do your homework on the type of car you’re
looking for before you even bother going to the dealership just think of it like
this okay the goal of the dealership is to make money and your goal is to save
money so in order to do that you’ve got to start by doing your research I mean
seriously how do you expect to negotiate a car deal if you have no idea what the
car you’re looking at is even worth just don’t be stupid with this okay just do
your homework and you’ll be just fine so while you’re doing the research for
the car that you’re looking for these are the two websites that I recommend
using I want you to visit and because both of these
websites are gonna give you really good information on what your car is worth
the specs and different reviews and things like that
they both do a great job at letting you know how much your car is worth in the
particular region that you live in what these websites do is they allow you to
plug in all the different specs and information about the cars you’re
looking for and then they’ll tell you what’s a fair price that you should be
paying now you can use Kelley Blue Book as well but what I’m trying to say here
is that if you just go online and do some research you’re gonna be in a lot
better position to negotiate a car and seriously if you don’t do your research
you’re gonna end up in a car that you didn’t want in the first place and
you’re gonna want to sell it in six months because you hate it so just do
your research before you go to the dealership and you’ll be just fine
now the next key step is to actually negotiate the price of the car that
you’re buying I’m gonna tell you exactly how to negotiate
car deal so the first thing you want to do is you want to get on the phone and
you want to call every single dealer that’s in your area and find out what
they want for the specific car that you’re looking for now if they do want
their business they’ll just tell you the real numbers over the phone so that you
don’t have to play a bunch of games and you can just go into the right
dealership that you want to now if they tell you that you have to come into the
dealership in order to get the price then don’t even bother doing business
with them because they’re not giving you the respect that you deserve right from
the beginning now once you’ve made all the phone calls
and you’re confident which dealership you want to go with go ahead and head
over that now once you’ve gotten to the dealership and you find this specific
car that you want you need to lock in that price first thing and I’m talking
about the exact price of the car and not the monthly payment because monthly
payments can fluctuate just based on changing the terms so let’s say that the
car you’re looking for is listed for fourteen nine and that’s a pretty good
price based on the research that you’ve already done now you’ve already got a
good starting point because of the phone calls and the research that you’ve done
but you don’t know how much the dealerships paid for it maybe they only
paid thirteen five for the car but you have no idea now if that were actually
true they could potentially make about fourteen hundred bucks off of that deal
and that’s not even including a trade-in or financing different things like that
and I know that businesses need to make a profit in order to stay in business
but there’s a point where they’re just making too much money off of one deal
and seriously 1,400 bucks isn’t even that much compared to some of the really
expensive used cars and the margins that they haven’t knows now that’s the thing
that really sucks about buying cars these days is because you have no idea
how much money they’re making in the deal there’s no transparency when it
comes to buying cars from the consumers point of view so what you can do is you
can at least try your best to negotiate the best deal possible so that you don’t
have to think about it now this is how you negotiate the car’s price but you’ve
got to be confident in order to make this happen now if you’ve got a timid
type personality then you’ve got to understand that you are always gonna get
screwed on these kind of deals unless you fake your confidence so I don’t
really care if you’re not naturally the confident type you’ve just got to fake
it in order to make this happen so this is what you’ve got to do you’ve got to
start with an asking price that’s fair and realistic for the amount of money
that you actually want to pay for the car so for instance let’s say that you
lowball and you ask for $9,000 for the car
well the salesman is just gonna politely walk you out of the dealership and say
have a good day because that’s not fair and that’s not a realistic price the
dealership does have bills to pay and the salesman probably wants to keep his
job so just make a realistic and a fair offer here if it were me personally I
would offer $13,900 for the car and I would stand by that price and the only thing
that sucks here is that you have no idea how much money they’re making on that
car but just be confident in your offer and you’ll be just fine and you won’t
have buyer’s remorse and you can be confident here because you at least know
based on your research that the car is worth a little bit more than that you
just don’t know how much the dealership is gonna make off the deal so just be ok
with the number that you got from the research and the offer that you’re
making on the car so that you can be confident so right after you make the
offer the salesman will say something like well let me go talk to my manager
that’s a really low offer we’ll see what we can do now he’s gonna come back with
a pen and paper and he’s gonna write down a bunch of financing and a bunch of
numbers and all sorts of stuff like that but the only thing you need to pay
attention to is the actual price of the car and my bet is that the number on the
car is going to be $14,500 which is not the $13,900 that you asked for
he’ll still make you feel bad that the company’s not making any money
and that that’s about the maximum amount of money that they can sell the car to
you for and if it were actually true that they weren’t making any money on
the car and at this point they would just walk you out of the dealership and
they’d say have a nice day because they really do need to make a profit on the
car so just keep in mind that if they’re not kicking you out of the dealership
then you’re still worth their time to them so from my personal experience I
was in sales for five years and I can tell you that there is always a point in
a negotiation where it’s still worth getting the sale there’s always going to
be a point where the salesman can either make it happen or he’s got to have you
leave so even if the salesman’s Commission has been completely
slaughtered by your offer it still might be worth it to them because of monthly
sales and yearly sales that they’re trying to keep track of so at this point
just ignore all the numbers on the paper and focus in on the price tell the
salesman that you can’t afford anything but the $13,900 that you offered
and that you’ll just leave if they can’t do that for you now at this point he’ll
go back to the manager once again and then he’ll come back with a new
number this time it’ll be $14,200 and he will tell you straight up that they have
no money to be made on that car so now just be confident here and offer
once again the $13,900 and just tell him that you’ll leave and seriously don’t
feel bad if you need to leave here because it’s really easy to just go to
one of those other dealerships that you already called and work with them
instead so now the salesman will leave to his manager once again and this time
the manager will come back with the salesman now if they can’t afford your
offer you’ll know that by now but at this point you’re going to be talking to
the salesman and the manager now when you’re talking to them they’re gonna
give you a whole bunch of bullcrap about how they’re not making any money and how
fourteen thousand dollars is the lowest they could possibly go on the car now
I’d say fourteen thousand dollars is close enough to the thirty-nine that you
offered so just say yes and make it happen the thing that sucks here is that
if they would have just offered fourteen thousand from the very beginning you
probably would have been just fine with that and you wouldn’t have had to waste
any time but that’s part of the negotiation process because if you don’t
go back and forth a few times then they’re likely to make more money off of
the deal and then obviously you on the other hand are gonna be spending more
money on the car I’d say that going back and forth about three times is usually
the magic number and I’m sorry that this sucks but you’re gonna have to do it
every single time you buy a car in order to get the best deal now I’m not gonna
go into a ton of detail here but if you’ve got a trade-in you’re gonna have
to do the same stupid game once again you’ve got to make sure that you get an
excellent trade price too otherwise you’re just gonna end up breaking even
so basically if you get a really good price on your car but you’ve got a
really crappy trade-in then that’s not gonna work overall you’ve got to get
your trade up here where it’s even so that you get the best deal overall now I
do want to make a point here that if you’ve got a trade-in for the dealership
keep in mind that most states will actually subtract the total of your
trade amount from the total price of the car helping you with the sales tax so
let’s say that you buy a twenty five thousand dollar car and you have a
trade-in that’s worth $12,000 so let’s pretend that the sales tax rate in your
state is about seven percent so what this means is that you’re only gonna pay
sales tax on the difference which is thirteen thousand dollars instead of the
twenty five thousand dollars that you started at so if you’ve got a car that
you want to sell that’s actually worth a lot of
then it might be worth considering going through the trade through the dealership
so let’s say that you have a car that’s worth like $5,000 and the dealership
only offers you $3,000 for the car well even with the tax advantage it’s not
gonna be worth that extra $2,000 so you’d be better off just selling it
on your own and whether or not you want to sell your car on your own or do a
trade through the dealership that’s just up to you I’ve done plenty of trades and
they’ve worked out fine now that you’ve negotiated the price of
the car and the trade-in it’s time for the final key step of negotiation which
is the financing now this part of the negotiation process can really screw you
over so pay attention as to what to do when it comes to financing the first
thing you want to do is you want to make sure you get the best interest rate for
the car loan that you’re trying to get a lot of dealers will actually get a tiny
little cut of the interest rates so it might be in your best interest to check
with your banks before you go into the dealership to check their rates but I’ve
actually found that a lot of the big dealerships are pretty honest when it
comes to competitive rates so what you see at a bank is going to be exactly the
same as what they’re offering you just do a little bit of homework here so that
you have an idea if they’re getting a cut or if they’re not getting a cut so
once you’ve got the interest rate figured out you’ve got to also
understand that you’ve still got taxes and fees associated with your car as
well now taxes and fees totally suck when it
comes to buying a car but I’m gonna teach you how to tell if it’s a tax or
if it’s just a bullcrap fee for the dealership to make more money the way
that you can tell that it’s a legit feed that you have to pay is if you don’t pay
sales tax on the fee you’re not gonna have to pay sales tax on a state
registration or a licensing fee or anything like that and if you do have to
pay sales tax on the fee then that’s a good reminder that it’s probably a fee
that you don’t have to pay there’s a couple fees that I’ve always gotten used
to and one is called VTR and the other one is called the doc fee now VTR which
they call vehicle theft registration is usually about 300 bucks and I’ve always
been able to get out of that one now the other feed that I’m used to is called
the doc fee which is also about 300 bucks but I have never been able to get
out of the document fee so if you have let me know in the comments because I’ve
tried really hard and I’ve never been able to get out of it now at this point
during the financing you want to make sure that you get all the applicable
rebates and all the different things associated with saving money on the
vehicle now if the dealership offers you an
extended warranty or some sort of an interior cleaning protection program
keep in mind that those are negotiable – I’m not gonna go into a bunch of detail
here but just don’t pay full price for an extended warranty if you want
something like that and don’t pay full price for some carpet cleaning thing
either now finally after all of this is done you can sign the paperwork and you
can drive away knowing that you negotiated the car the best that you
possibly could and now you don’t have to have buyer’s remorse like most of us do
after we buy a car now once again I’m Jason with the honest finance Channel if
you did find this video helpful feel free to subscribe to my channel or at
least give this video a like that’s all

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100 thoughts on “How to Negotiate a Car Deal (And Save Big)

  1. I bought a used Dewalt drill yesterday. Asking price was $40, I offered $20 the salesman came back at $30 I added a big flat head screw driver $5 value. They ok the deal

  2. I think that at the beginning of this video you hit nail on the head. Call every dealer and go to the one who shoots you straight numbers prior to arriving. You can tell who is bsing and who isn’t.

  3. Great video. Thank you. Very informative, especially the financing part. All that was said will help a ton when I go to purchase a vehicle this weekend. Thanks again.

  4. If you working on a positive patient mind don’t read this mans comments 😂 you gone question what your even doing rn

  5. my parents are looking for me an accord ex and we found one at a dealership a town over. catch is, it’s not yet on the main lot [they got it in as soon as we pulled up] and salesmen said they have it valued at 21000 but will probably let it go for 19500. everywhere we’ve looked online has them priced between 16500 and 18600. its gonna be a messy talking them down but i’m ready.

  6. I got out of the doc fee on the last car I bought. I just adamantly told them that every Google search result will tell you that it's a BS fee that's just a way for them to make more money off of you (and their fee was over $1K). So they removed the fee (my sales guy was in shock). And then failed to disclose the extended warranty they sold me, and marked up my interest rate by at least 2% because I was able to refinance the next month and halve my rate. You win some, you lose some, but in the end you've gotta be bulletproof or they will screw you over one way or another. Keep running the numbers in a loan calculator and if you're not getting the same monthly payment off of the sales price, then question everything.

  7. If the dealer will not remove the doc fee, take the fee out of the sales price of the vehicle. I have literally ended a sale of a new RV over $500 bullshit fees. Dealer was determined to take that $500 from me. I walked.

  8. I hav a 2011 equinox, I owe 4600 wit 90000 miles how do I trade it in? And what year used SUV should I negotiate for.

  9. The dealer I bought from did get a cut if I financed through them. When it came time to finance they were only able to match the rates I came in with from a local CU. However I said if they drop their doc fee I'll finance with them. Only time I've ever gotten out of a doc fee.

  10. Is it possible to talk down an internet sale price? I’m trying to buy a 2013 Audi. The internet price is 13900 but I only want to pay 13000 including all the added fees. Any advice?

  11. Find the car you want & make them an offer out the door. They can take it or leave it. Walk away if they decline.

  12. Muy buen video. Curioso que el titulo de lvideo este en español pero el video este por completo en español.

  13. So wouldn’t it just be better to have it all financed through a bank before? You’ll have the $ already. That price you negotiated is the walk off price? Would that make it all easier?

  14. So, if I’ve got cash, no need to finance, is it true that I’ve got more bargaining power? My figures are very similar to the ones in the video.

  15. Maybe I am a little late to the show considering how old the video is. Great video though!
    I´m new to the states, i come from a country where tax is always included in the price and their aren´t any additional fees when buying a car. There is simply a price tag and you pay the price. With this in mind I´m sure it is no surprise that american quotes are confusing AF to me.
    The most recent quote i have is for a car with the price of $10,499 they then added something called ADM Fee $589 Tax $332.64 and Non Tax Fees $101. The tax on buying a car in North Carolina where i live is 3% which the $332.64 fits pretty well into. But what about the other 2 fees, are these just made up bullshit for the dealer to make more money? and should i just ask them to remove these fees?

  16. I get your point, but the goal is not to save money but to own a dependable and nice looking car that represents our needs and/or ego….good subject thanks.

  17. when you say I want you to look up….     I say to myself, I don't care what you want..better to say I suggest or try.,,bla bla bla .or a good place to look up is …          And I know you didn't mean it as I said, but it will be taken wrong by many including myself…good show anyways thx

  18. Perfect example except before you agree on $14,000 get a freebie out of it, have them throw in perhaps a windows tint that you wanted, or free oil change in your account.

  19. Name one other product the consumers know the real cost of the product. (Cloths, Homes, Electronics?)

  20. i wanna get a new 4Runner total $45600 and i wanna pay cash …. my first time buying a car on my own … usually my dad leases my cars for me … i cant find any videos for cash deals . can you please make a video or explain how to negotiate if i wanna pay full in cash 😉 thank you

  21. Just go to Carvana, get 7 days to check out the car and if you choose not to buy they will just pick it up the same way they dropped it off. I took the 2016 BMW that they drooped off at my house to the dealer for an inspection. Need brakes, $1500. and they paid for it so I went through with the deal and bought the BMW.

  22. Nether of these sites give you your cars info, just what is offered for sale, Better to use NADA and KBB to find the value of the vehicle.

  23. I’ve been worried about negotiation because I’m currently in the process of Jeep shopping and I can not thank you enough for making this video!!!!! Amazing!!! Thank you so much!!!

  24. If you have the ability to walk away you'll be fine, if you dont you'll get hosed most likely

    You do it once every 5-10 yrs, these guys do it everyday, who's gonna be better at this?…….research as vid says and walk out friggen door if you cant get a fair deal….

  25. Went to look at a Dodge Ram today. Truck was listed at $24k. After negotiating a reasonable payment I multiplied the payment by the term years and the total was $39k. I didn't need to ask them what the interest rate was to see i was being screwed. I laughed and said no thanks. This is why I prefer to buy older vehicles using bank loans on private deals. Two people agree on a price and that's it. Theres no bs.

  26. After being in the car business for over 12 years one of the easiest things you can do is make yourself known as a invoice buyer. Ask for the invoice on the used vehicle in other words how much did you give the person who traded this car in? If the dealership is not willing to show you the invoice on the new or used vehicle walkout!

  27. The best advice when negotiating a deal… YOU have the power, all of it. Because you can just walk out if you don't like ANY aspect of the deal.

  28. As a consumer you are buying quality not price, it doesn't matter how much a dealer is asking for the car, come in drive it, like it, then make your offer. You would not buy a pair of shoes before you try them on right? A good dealer will not talk price over the phone. If you like the car go see it, touch it feel it drive it, then talk price..

  29. I don't entirely understand the 'call the dealership' tip at 2:12. Aren't those prices listed online? Won't they tell anyone who calls to just check online? Unless the prices listed online aren't always the 'real' price, which seems likely considering everything else you said in the video.

  30. Except for the fact that truecar charges the dealership $400 as soon as you submit an inquiry about the car, coming out of the profit margin on that car, potentially losing you $400.

  31. NADA will give you the wholesale values of the used vehicle. Dealers usually pay less than wholesale for a used car. I use this when negotiating. Along with Carfax, edmunds, truecar, kbb. Print everything out that will help you, and take it with you. Never be afraid to walk out. I've walked out many times and been called back agreeing to my price or finding another dealer that would. Also you can get dealers to throw in services for free. I helped someone find and negotiate a car recently. I got the dealer to throw in 2 oil changes with tire rotations. My last new car purchase, I negotiated 5 synthetic oil changes in my deal, along with a good price I was happy with.

  32. it doesnt matter how much a dealer is making it is irrelevant a person should be happy about getting a deal that shows as a good deal. It is also untrue that dealers always making money on car deals, often times dealers can loose money on deals bc of money they get paid from manufacturers for hitting objective this idea of just paying what you want for a car is ridiculous also the time spent of like 4-6 hours to save 3-500$ is just idiotic, as my time is worth alot more than that, but I suppose for some people it is worth the head ache and time but not for me I would rather pay a small profit to them for doing their job and be out iln 30 mins to an hour rather than spending my entire day there.

  33. Geez.. One day I’ll get a new Tesla and skip all this BS. It is ridiculous we have to jump through all these hoops just to get a car.

  34. I found this hysterical when this happened to me15 years ago when I purchased my Chrysler 300M special. They wanted $35,000. I did my due diligence and research and also used Consumer Reports and had a check from the bank in my pocket. Just like you stated, I told them is what I'll pay "out the door", meaning tax and licensing as well. I saved over $5,000 on the purchase, and the sales guy kept doing just as you have stated trying to wear me down. When I noticed what he was doing, I knew I had him by the balls.

  35. I watched this video before heading to the dealership to trade in my old vehicle….thank you so much!!! I did my research so I was able to stick to my guns, call their bluffs, and negotiate like a pro. Out the door was 23% savings on the sticker price. And they TOTALLY tried to trick me with fees.

  36. Yea, and if you've got a trade in, there gonna insist on taking the Keys and leaving you in the lounge while they research the physical limits of your connecting rods and driveline treating YOUR Property like a car that's already been relegated to the crusher! Do Don't under any circumstances let them take your keys and drive Your car without you. Especially if you don't have a concrete deal.

  37. Honestly, this video disgusts me.

    If you don't trust a dealer, don't buy a car there. If you do trust a dealer, don't act like buying a car is ANY different than buying a pair of shoes.
    There's a product, and there's a price. You are entitled to dislike either one or both, and make your decision based accordingly.

    But consumers who don't even give me a chance to earn their trust, and do everything they can to manipulate us are JUST AS DESPICABLE as sales professionals who abuse that trust by manipulating their customer

    We're here to help you make the second most important financial decision of your life.
    "Does that price speak to the value we've showed you in the vehicle and our services?" is all that matters.
    It's none of your business how much money we make.


  38. if you have a used car over 10 years old sell it yourself. no way will they give you close to what its worth if you sold yourself.

  39. Also the information in this video is not correct; I've seen my boss pay a customer 5K to lease a vehicle. Absolutely de-generate selfishness being demonstrated here

  40. great information! I have been researching for about 3 weeks and feel a lot more confident in entering into negotiations. the only thing I dread is the way dealerships treat women, like we are idiots.

  41. i should have watch this first before i bought my ride from Chrysler Destination in North Vancouver.. do not go there

  42. Would it be considered lowball if the car cost 21k and I offer 17 or 18k? I had a friend who got a car for 14k from almost 19k

  43. Pay attention to the actual price of the car is correct when the bank doesn't try to throw stuff like AOE at you. Never understood why Americans tolerate that banks and corporations screw them over.

  44. If enough consumers would learn the #1 rule of business these sales tactics would not exist. That being……the one(s) with the money makes the rules ! Tell that to your sales puppet up front and watch his puzzled expression. These guys are trained to take control of the sales process. If you reverse that they are usually at a loss for words. It's quite amusing. LOL
    Answer NO questions….not even your name ! You can, as politely as you choose, tell them that you are there to buy a car…not to make friends . Remember, they are there to get as much of your money as possible…not to be YOUR friend !

  45. I recently went to a Toyota car dealer to buy a used car. I told him I can only pay 3k less then what he asked for online… He didnt entertain any further… Could you tell me how much lower can the dealer actually go on average? I dont want to miss the next deal…

  46. Some really good advice I’ve gotten is to not tell the dealership that you have a trade in until you get close to the end of buying your new car. It will stop them from lowballing you

  47. I wish i found this video before i bought my new jeep. if what you say holds even a shred of clout then i over payed by 1200 bucks. You are very informative

  48. If in Edmund, kbb, and CarGurus mentioned that a car is a fair and good deal, does that mean I can’t haggle for a lower price? Anyone can help…

  49. Jason, if you want to buy all cash, do you tell them you want to finance to get a lower price, and then once agreed upon, change to all cash? Or do you tell them all cash up front?

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