Tips on Car Negotiations

Knowing how best to negotiate both your car loan and the price of your vehicle with the salesperson are the keys to driving away in a vehicle you can be happy with. Buyer's remorse most often strikes those who feel that they were inadequately prepared for the sales tactics thrown at them, and so they did not receive the good deal that they wanted for the car. Here are some tips to help you avoid that buyer's remorse by negotiating the best possible deal.

Get Preapproved through an independent source

Knowing in advance how much you can spend on a car will help you to avoid overextending yourself on the lot or allowing yourself to be goaded into buying extra features that you don't need. Pre-approval also means that you can cut out the middle man of dealer negotiations and the inflated rates they apply to any loan you get through them.

Don't focus on interest rates alone

There is more to a good car loan than just a low interest rate, such as the length of the loan. A loan offer with a slightly higher interest rate that is paid off a year or two earlier than an offer with a lower interest rate will save you money over time. You also shouldn't settle for the first offer you're given from a single lender. Look to shop out your loan offers to various sources and allow them to compete, offering you varied terms to choose from.

To thine own car be true

Best way to negotiate the best deal for your new car is to know it and its options intimately before you set foot anywhere near a dealership. Before you go shopping for a car, you should research, very thoroughly, two or three different cars you are interested in and all of their options. If you go straight to the manufacturer's website, most of them nowadays will have features that allow you to build your car online to see what it looks like - and what it will cost with the options you have chosen. Doing this in advance of letting the salesperson try to talk you into other things will have you forewarned to land the best deal available. Know what car you want and how much it costs and don't be dissuaded or talked into buying something you know nothing about.

Keep your walking shoes on

Face it, most of the time car shopping and negotiations are going to be something of a stressful environment as you and the salesperson are working at opposite goals - you want to save money, while they want to take as much of your money they can. This is why knowing your car and its retail value before you go to a dealership is very important. Just because you have researched the car's price, however, doesn't mean that you will automatically get the salesperson to offer the vehicle to you for that amount. You may have to haggle quite a bit for it. If, however, the salesperson proves intractable and will not sell you the car at a price you believe is fair, take your walking shoes and put them to good use taking your business and your preapproval to another dealership. Odds are, the sight of your retreating back will spur the salesperson on to new negotiating heights and you may get what you want, but even if it doesn't, don't let that deter you. Whether you're in Boise or Sandpoint, there are other dealerships nearby that will be more willing to negotiate fairly with you.