How to Negotiate Car Price Like a Pro

How to Negotiate Car Price Like a Pro

Posted on February 10, 2022

Are you thinking about buying a car? Unless you are independently wealthy, you will need to finance the purchase, and it helps to understand how to properly negotiate a car loan.

The average person will buy less than ten cars in their lifetime. During that time, you will not get much practice negotiating Burford car loans, so we are going to give you an edge.

By the time you finish reading this, you will be able to negotiate a car loan with the best of them.

Before you can negotiate, you must first understand the value of what you are buying

Ok, that was a mouthful, but it is vital to bear this in mind before you even start going for test drives. Even if you are buying new, the sticker price is not always the bottom line price, especially if you have the right mindset.

There is a shortage of new and used cars in the market, so there are more buyers than vehicles to go around.

This creates a seller's market, but it does not mean you will not have options; it just requires a little creativity from your end.

Creating a list of needs and wants

This may seem like we are sucking all of the fun out of buying a car, but this list will pay off, so give us the benefit of the doubt.

What are some things that your new car must have? I.e., the minimum number of seats, headspace for folks over six feet tall, or perhaps great fuel economy?

These are features that are important; colour and additional options like moon roof may be “nice to have,” but they are not classified as “must-have”.

When you have worked out your checklist, it makes everything else that much easier.

Are you a prime credit borrower?

Having a strong credit score is highly desired, and if you have a score over 700, congratulations. Lenders are under immense pressure to issue loans because interest rates are low; they need volume to make a profit.

You are precisely what risk-averse lenders are looking for with a high credit score, borrowers who aren’t likely to default on the loan.

If your score is under 650, it can be tough getting approved for a car loan in Burford without having to accept a considerably higher interest rate. So, try to work on keeping your credit score high at all times.

Best place to buy your cars

There are debates about the benefits of a zero contact, online car buying experience. The pandemic forced us to shop online for our essentials; when buying a car, there is absolutely no substitute for in-person meetings.

You can take the car for a test drive, and you can also get a “feel” for things.

The dealership will be in a position to help you get a competitive car loan because they want your business, especially if you have good credit.

Even if your credit is bruised, the dealership will still be able to help with getting you a competitive car loan, but your negotiating power would be diminished due to your bad credit.

We’d love to help you find the perfect car loan. Simply fill in the form below and we’ll get back to you ASAP! 

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