Top 4 Car Price Negotiation Tips at a Dealership


Car dealerships are a great place to start if you’re looking to buy a new or used car. They usually offer you great deals and discounts on a variety of vehicles. Unfortunately, most people don’t realize the leverage they have for negotiation in the dealership’s price, and end up having paid much more than they ideally should have. If you’re looking to get your next car at the best possible price, we’ve prepared a list of car price negotiation tips.

Do your Research Beforehand

Make sure you’re well aware of the potential car you’d like to buy before you even think about going into a dealership. This involves knowing not only the technical specifications, but also the true market value of the car. Search through our car classified section for this. Remember, the dealership will always keep a large margin for negotiating on the price.

Remember to stay strong on your decision once you’ve settled on a particular model. If the sales agent finds you’re trying to work on a smaller budget, they might offer you a model that is cheaper, older or has lower specifications.

Decide on a Fair Price, and Limit Negotiations

A “fair price” for new car would be around AED1,000 to 2,000 less than the true market value. For used cars, you should try to get 10% to 15% discount on the wholesale value, according to motoring expert Jason Lancaster, who himself worked at a dealership for 9 years. Jason says while it is difficult, an aggressive offer may pop out from time to time.

It’s here that most people lose out on a potentially good deal. They lay the groundwork by doing thorough research, but aren’t aggressive enough in their haggling and eventually give in to the dealership’s offer. The most important thing you need to do is to never budge on your original offer, as long as you feel like it’s within what the dealership would be willing to sell at.

Tell the salesperson that you’ve offered them what you think is fair, give them your number, and start to leave. Even if they don’t stop you in the middle of your walkout with a better deal, they will eventually call you back.

Know the Best Times of Car Price Negotiation

There are certain times in a year where dealerships are more willing to let go off their cars at a lower price, because they’re trying to keep up the sales. These will include:

  • Saturday or Sunday nights
  • The last 2-3 days of the month
  • During snowy/rainy seasons

Never Reveal your Budget/Financing

The moment you let the salesperson know what sort of budget you’re working on, they’ll try and offer you the cars they know can make the most profit. Always keep your budget to yourself, and simply tell the salesperson what type of car you’re looking for.

Another point to remember is that car deals can be financed in many different ways. Dealerships will always prefer finance deals, because they can make the most money out of those. If you’re looking to buy on cash, you can take advantage of this by letting the salesperson come down on their offer, thinking you’re going to go with a finance deal. Once a price is decided, simply tell them you’re going to pay by cash.

Remember our car price negotiation tips the next time you’re looking to buy a car and you’re guaranteed to get a good deal. For more top tips and tricks on buying and selling cars in the UAE, check out our tips and advice section.

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