Dealers Are Paying Less — So Negotiate
Wholesale used-car prices fell 1.1% in September, but dealer lot prices are still running nearly 6% higher than a year ago.
Dealers are paying less for these cars and not passing the savings along — until you negotiate. The discount is in there. You just have to ask for it.
Source: Manheim index data via Auto4Export
How to Negotiate
Do your homework before you ever set foot on the lot. Know what similar cars are actually selling for, and decide the most you're willing to pay before you go. Use the words 'out-the-door price' when you talk numbers — most dealers will know right away that you're serious and have done your research. And if you've seen the same car priced better somewhere else, be ready to show them the specific examples. Then negotiate that total out-the-door price, not the monthly payment. A low payment stretched over a long loan is exactly how car payments sneak back into your life.
Don't just be prepared to walk away — expect to. Most of the time your first visit ends with you leaving, and that's fine. Your feet are your strongest negotiating tool, and your emotions are your worst enemy. If the numbers don't work, thank them, leave your phone number, and go home. A car that's still sitting there in two weeks has a way of getting cheaper — and never let anyone rush you. A good deal today will still be a good deal tomorrow.
Negotiating on a car right now? Bring your numbers to the Paid For Car community — plenty of car people there happy to talk it through.