What Not to Do When Negotiating Car Prices

Car buying is stressful, so it can help to prepare your responses to common sales tactics. Here are some scripted suggestions for common situations that play with your emotions:

• A salesperson appeals to your vanity by showing you a more expensive make/model than you came in for, as in, “Think of how you’ll look in this car!” Your response can be, “I’m not interested in that vehicle. Would you please show me the make/model I asked about?”
• A salesperson, without your request, shows the top-of-the-line vehicle with all the bells and whistles, such as heated leather seats and an awesome sound system. Your response could be, “I’d like to see the lower-end models.”

Also, have a few calming techniques in your pocket for when your emotions run high. Deep breathing, counting to 10 backwards, shrugging your shoulders to release tension, and stepping outside for a breath of fresh air can reset your emotions and help you regain control.

Importantly, never get too attached to any particular vehicle. Be ready to walk away rather than pay more than what the car is worth or you’re ready to spend.

A good salesperson whose only goal is to sell the car will ask what your budget is and work from there. But that’s not the best way to buy a car. Instead, avoid answering the question.

You can say something like, “I’m not ready to talk about that yet. Tell me more about this vehicle.” Wait for the salesperson to tell you the purchase price of the model you’re interested in. Once you have that, you can compare it to your budget — without letting the salesperson know what that budget is.

Also, ask what’s the best price you could get for the model in question. Before you enter any showroom, determine your “walk away” price — the most you’re willing to spend. This could be a little bit higher than your budget, or the same as your budget.

You should have a pretty good idea as to discounts and pricing for the make and models you’re considering. Reliable sources for this information include Consumer Reports, Edmunds, Kelley Blue Book, and CARFAX.

In 2025, 66 percent of shoppers looked at new and used vehicles, a 9 percent increase from the previous year.² More buyers are looking at used cars for affordability — especially since used cars usually have more wiggle room for the final price, such as up to 20 percent off the sticker price.

New cars have less room for negotiation, but you could still reasonably ask for 5 percent off the manufacturer’s suggested retail price (MSRP) as a starting point. Also, research ahead of time the dealer’s current discounts and rebates. Keep in mind though, that since the pandemic and the shortage of new and used cars, many dealerships and vehicle retailers will not negotiate on the price of a car.

You shouldn’t buy a car from the first showroom you visit; often, you’ll save money if you visit more than one dealer. For example, one dealer might offer to sweeten the deal by throwing in free oil changes for life, while another one might give a higher percentage off the MSRP. Once you’ve visited a few dealers, go back to the dealership with your research about the vehicle you want.

For instance, when negotiating the final price, you could say, “Dealership X said they could give me this vehicle for $X. Can you meet that number?” or, “Dealership Y is willing to give me free oil changes for life — could you make the same deal?”

In another example, the salesperson might say the vehicle you want is the last one on the lot in order to create a sense of urgency. You could counter by saying you could get a similar vehicle from another dealer instead of rushing to snap up that particular car.

The salesperson will show you a worksheet with monthly payments lasting six, seven, or even eight years to make the car seem more affordable. It can be difficult to move them off the monthly payment, but keep your focus on your budgeted amount for the entire purchase. Our auto loan calculator helps you estimate your monthly payments on a particular vehicle so you can plan ahead. Keep in mind that while longer loan terms result in lower monthly payment, you’ll pay more in interest over the lifetime of the loan.

The savvy car shopper knows not to bring up a trade-in vehicle from the start. The salesperson will ask if you will have a trade-in, but reply that you haven’t decided whether you will be trading in your current vehicle. You want to negotiate the best deal for your new ride without having a trade-in as part of the calculation.

If you will be trading in a vehicle when purchasing a new one, do your homework to see what you can expect to get from a dealer for the trade-in. You might be better off selling it yourself. However, private sales could take longer, as you’ll need to advertise the vehicle, then vet potential buyers.

You want the best deal possible before subtracting rebates and other offers. Don’t let the bonuses become the discount. Also, ensure you’re seeing the out-the-door or off-the-lot price, which is often different from the sticker price.

The off-the-lot price will include delivery/freight charges (average cost around $1,000), tags and title costs (which can vary widely by state¹), and state inspections (if applicable, inspection fees range between $10 and $50). Ask specific questions to make sure all of those extras are included in the final price.

While negotiations usually focus on the sticker price, you can also save money on the interest rate. Get pre-approved for a loan before you head to a dealer, then see if the dealer will lower their interest rate. In many cases, dealerships can use a car manufacturer’s incentive program to give you lower rates, allowing you to save hundreds of dollars.

You can sweeten the deal by negotiating special features, such as leather seats, sunroofs, luggage racks, and towing packages, as part of the final price. You can also ask about dealer maintenance packages, such as yearly oil changes, tire rotations, and mileage servicing for 30,000, 60,000, and 90,000 miles.

Also, don’t forget extended warranties and protection plans — those are also fair game for negotiations and will cut repair costs over time. Dealers might be willing to give away more of these special features as freebies to move vehicles off the lot.

As my personal example showed, salespeople count on you to not be willing to start all over in the car buying process. But remember — you are in charge of the negotiation. It’s your money, not the salesperson’s.

Also, no one can force you to purchase the vehicle, even after the negotiation process. If you’re uncomfortable with the final deal or if the salesperson suddenly unveils an added cost, walk away. Often, you won’t even make it to the door before the salesperson will say he can have a conversation with his manager to seal the deal on your terms.

There are major overlaps between negotiating a vehicle purchase and a lease. However, you may want to consider a lease instead if you drive less or want newer models every few years. Also, car leases may be the preferred choice for drivers looking for lower monthly payments.

Here are important points to know that will affect your negotiations, especially if you’re deciding between buying and leasing:

While there are many similarities between a vehicle purchase and lease, lease contracts feature a mileage cap, which limits how many miles you can drive per year. Make sure to negotiate lease terms with a mileage cap matching your average annual mileage. Otherwise, you’ll pay for those extra miles.

Additionally, even though the monthly payments for leases are lower, expect extra costs. You’ll pay an acquisition fee, or a charge for setting up a lease agreement, and a disposition fee, for cleaning and repairing the car once you return it.