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3 Simple Techniques To Negotiate A Better Car Deal

Car Dealer

Let’s talk about 3 simple techniques for negotiating a better car deal even if your credit sucks. Number 1 and 2 are commonly known but often misunderstood. Number 3 is something most dealers will never admit but is guaranteed to give you huge leverage in negotiations.

Reading online articles about dealership profit margins will give you a feeling that your local car dealer is as poor as a church mouse.

Does that sound right to you?

I’m not buying these stories. If they didn’t make any blink blink, they would be out of business a day before yesterday.

So, there is always room to get some additional discounts.

1. Compare only similar offers

In many cases, people say “get different offers”, but the cold harsh truth is that not many offers can be compared directly.

A lower priced car can be actually more expensive because it’s not fully loaded. Maybe the benefits you get with a more expensive car are worth the extra couple pennies?

2. New vs. used?

Is it cheaper to buy a new or used car?

It all depends on the price. If a slightly used car is actually cheaper than the new one, go for it. But, a couple years old car needs to be much cheaper (at least 30-50%, depends on brand, model and general state of car) to be worth buying.

However, keep in mind dealers usually make more money with used cars so you have better negotiating power there.

3. Secure financing first

Most Canadians make the mistake of searching a car first and only then look for financing.

The ones looking to get a good deal always secure financing first. They check to see what they can afford and get approved for. Only then they start negotiations for a specific car.

That’s all for today.

Looking to buy a car in the next couple of months and want to secure financing? Apply here:

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