How to negotiate the price of a car
To negotiate a car price, get a loan pre-approval from your bank or credit union first, ask several dealers for a written out-the-door price by email, and negotiate that single total, including taxes and fees, never the monthly payment. Handle any trade-in separately, turn down add-ons you did not ask for, and be ready to walk out.
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How to do it
- Set your total budget and get pre-approved for a loan from your own bank or credit union.
- Research what the model and trim actually sell for in your area.
- Email three or more dealers asking for their best out-the-door price on that exact car, including taxes, title and every fee.
- Take the lowest written quote to the others and ask if they can beat it.
- Get your trade-in's value from more than one buyer before you mention it to the dealer.
- In the finance office, turn down extended warranties, coatings and packages you did not plan for.
- Read the final contract and check the price, rate and term match what you agreed before you sign.
- Walk out if the numbers change or you feel pressured; there are other cars.
Stop and call a professional if
- The contract numbers differ from what you agreed and the dealer will not fix them: do not sign.
- You have already signed and feel the terms were misrepresented: contact your state's consumer protection office.
- You are buying a used car: have an independent mechanic inspect it first.
Common mistakes
- Answering the question of what monthly payment you want.
- Mixing the trade-in, the price and the loan into one conversation.
- Signing the same day after hours of waiting when you are tired.
- Accepting the dealer's loan rate without comparing it to your pre-approval.
Quick self-check
Three questions. Your last score is kept in this browser.
Teach this to someone
A one-page sheet for showing a friend, a roommate or a kid: what to say, what to show, and one question to check it landed.
Teach: How to negotiate the price of a car
What to say
To negotiate a car price, get a loan pre-approval from your bank or credit union first, ask several dealers for a written out-the-door price by email, and negotiate that single total, including taxes and fees, never the monthly payment. Handle any trade-in separately, turn down add-ons you did not ask for, and be ready to walk out.
What to show, in order
- Set your total budget and get pre-approved for a loan from your own bank or credit union.
- Research what the model and trim actually sell for in your area.
- Email three or more dealers asking for their best out-the-door price on that exact car, including taxes, title and every fee.
- Take the lowest written quote to the others and ask if they can beat it.
- Get your trade-in's value from more than one buyer before you mention it to the dealer.
- In the finance office, turn down extended warranties, coatings and packages you did not plan for.
- Read the final contract and check the price, rate and term match what you agreed before you sign.
- Walk out if the numbers change or you feel pressured; there are other cars.
When to stop and call a professional
- The contract numbers differ from what you agreed and the dealer will not fix them: do not sign.
- You have already signed and feel the terms were misrepresented: contact your state's consumer protection office.
- You are buying a used car: have an independent mechanic inspect it first.
The check question
Ask: Which number should you negotiate?
Related skills
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- Every skill in Money and Paperwork
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Last reviewed . First published .