Buying A Car? Don’t Settle For The First Price!

Blog post   •   Oct 19, 2010 12:07 BST

Going through the car buying process can bring with it a mixture of excitement, enjoyment, annoyance and aggravation, as well as the fact that it’s likely to take you a lot longer than you thought it would, no matter how well prepared you are.

Whilst there are various factors that can affect the whole process, one of the most prominent is the cost of the vehicle.

Although it’s strongly recommended that you set yourself a budget before you go out looking for a car, this budget can go completely out of the window when you start looking. You might realise, for example, that the type of car you want isn’t available within your budget.

Whatever category you fall into with your budget, there’s one thing you have to always, alwaysgot to remember – never agree to pay for the car with the first price that’s offered to you. And the simple reason behind this is that this will be the price which the dealership would like to sell the car for and not what they can sell the car for. The problem is that a lot of people are aware that car dealerships advertise their vehicles at a higher price and are willing to drop it if asked, but they just don’t know how to go about getting the best deal possible for the car. In fact, it was recently reported by Sainsbury Bank that 60% of British people don’t haggle on car price. If you’re one of these people, you have to ask yourself “what’s the worst thing that’s going to happen if you try and haggle?”  Are you worried that you won’t get the car at the price you want or that the car salesperson might become agitated and try to get you to buy the car at a price that you can’t afford or don’t want to pay?

You’re certainly not going to get thrown out of the dealership and therefore it’s important that no matter how uncomfortable it makes you feel – it’s only going to be for 20 minutes – you need to barter with the salesperson to try and get the price down as low as possible.

If you’re not sure how low you could go, a good starting point is 20 percent lower than what the car is currently being offered for.  Anything If the salesperson says they can’t sell it at anything under the stated price, you can simply walk away if you don’t want to pay the reduced price.

It’s worthwhile keeping in mind that you might be able to secure a better sale price if you utilise some car finance deals that the dealership is offering.  This is because, the dealership is likely to make money through a commission paid by the finance company. .Therefore, they are often flexible and will mix and match cash and car finance.

Haggling is not something that everyone is comfortable with, but it’s absolutely imperative to securing the best car finance deal on the car that you’re looking at.  If you’re not too happy with haggling, take a step outside of your comfort zone for a few minutes – you might feel awkward to start with, but you’ll soon be glad you did when you save yourself a lot of money on the cost of your new car.