Before You Walk Into the Dealership
Negotiation starts before you arrive. The biggest advantage you can have is knowing the car's true market value before the conversation begins. Check KBB, Edmunds, and TrueCar for the fair purchase price in your area. Know the invoice price (what the dealer paid) and the MSRP (sticker price). Your target is between invoice and MSRP.
Get Pre-Approved for Financing
Apply for auto loan pre-approval from your bank or credit union before visiting the dealer. This gives you a baseline rate to compare against dealer financing. Dealers make significant profit on financing — having a pre-approval in your pocket forces them to compete on rate.
Calculate your monthly payment before you shop.
Open Car Payment Calculator →Negotiate the Right Number
Dealers will focus on the monthly payment because it is easy to manipulate with longer loan terms. Always negotiate the out-the-door price — the total amount you will pay before financing. This includes the car price, tax, title, registration, and dealer fees. Refuse to discuss monthly payments until you have agreed on the total price.
Common Dealer Add-Ons to Decline
- Fabric protection ($200-500) — a can of Scotchgard costs $10
- Paint protection ($300-800) — not necessary on modern clear coats
- VIN etching ($100-300) — DIY kits cost $20
- Extended warranty — evaluate separately after purchase, not at the dealer
- Dealer prep fees — already included in the price, push back
When to Walk Away
Walking away is your most powerful tool. If the dealer will not meet your target price, thank them and leave. In most cases they will call you back within 24-48 hours with a better offer. Never feel pressured to buy the same day you visit. If a deal is good today, it will still be good tomorrow.
The best time to buy a car: end of the month (salespeople have quotas), end of the model year (September-November for clearance), and end of the quarter (March, June, September, December). The worst time: spring and summer when demand is highest.