If you are trading in your car and will be arranging for financing and buying a new car all in the same transaction, please take time to read through these pages we have provided to help you with negotiations and keep you from being taken advantage of during you new car purchase.
Start Your Negotiations With The Car Trade-In Price.
The car dealers will not like this approach, but if you begin with the new car loan, you will be giving the dealer financial information they can use to low-ball you on the value of your trade-in.
Start with the trade-in, as though you are only selling your vehicle, Don’t settle for anything less than the correct trade-in value of your car.Then you can move to negotiating the new car price. Hopefully, you had gotten a pre-approved car loan before you went to the car dealership.
Most dealers will try to avoid this because they want to work down the value of the trade
Once you have a reasonable value for your trade-in, then you can go ahead and find financing. You may even prefer to secure funding from an outside auto lender, bank or credit union, though if you have bad credit, your options for a subprime car loan may be limited. We suggest a loan broker like Valley Auto Loans so your loan request can be evaluated by many lenders with only one application. This way you get the best deal for your situation, and your credit check is only run one time.
Learning how to play the new car price game is essential. You need to know how to negotiate a car price correctly. Salespeople are assertive, and they have many tricks up their sleeves to keep you engaged even when you know you are getting the short end of the stick. There are two primary rules you need to bear in mind:
- Open negotiations by stating that you have done your research. This tells the dealer that you will be stubborn and that you are more likely to walk away from a bad deal.
- Never give the dealer your keys. If they have your keys, you are trapped at their mercy until they return them. If you keep them, you are telling the dealer that you can and will walk away if the deal turns sour.
Keeping these rules in mind will help you set up a presence of authority and knowledge, something that dealers must work around when they negotiate. Maintain this assertive air and you will have the upper hand in negotiations.
Of course, an auto dealer can always turn your deal down; don’t immediately jump to a low-ball figure if they do. Hold out for as much as you can get. This may be a good time to check with other dealers. You will always get the best deal by shopping around because the other dealers will try to beat the other dealers offers.
Be honest with yourself and your evaluation of your car trade in price. If you want the maximum value possible, you will sell the car to a private buyer. On the other hand, if you wanted the low-ball price the dealer will offer you, wouldn’t have gone to the trouble to research and clean up your car before your visit. There is a fine line you must find between optimism and foolishness.
Do not worry about your credit when negotiating the auto trade-in value
Your credit does not affect the value of your vehicle, nor should it influence the sale of your vehicle to a dealer. In fact, using a trade-in is a good way to boost the financial power you have for bad credit negotiations. Explaining your trade-in to a third-party financier will increase your chances of loan approval at a better rate than you might find elsewhere.
A new car is within your reach with a trade-in, no matter how old and worn out your vehicle may be. If your vehicle has any used car trade-in value whatsoever, and you are considering trading it in, knowing how to negotiate a car price can help you maximize that auto trade-in value and assist you in purchasing a new car.