How to walk into a car dealership with the upper hand
A car-buying expert shares the questions, strategies, and negotiating tactics that dealers hope you never think to use.
Hi there, my friend.
Many people dread buying a car. It takes forever. It can be confusing. It can be intimidating. For a lot of people, especially women, it feels even worse than that.
Scotty Reiss, a longtime automotive journalist and car-buying expert who founded A Girls Guide To Cars, put it plainly when I interviewed her for my book.
“The reason a woman takes a man with her to a car dealership is not because she thinks he’s more knowledgeable about the car or haggling,” Reiss told me. “It’s because she feels like she won’t be victimized. It’s kind of like walking down a dark street at night. If you have a 6-foot-tall man with you, you’re less likely to be mugged.”
That’s a striking way to put it, but she’s right. And the thing is, the fear isn’t irrational.
Dealerships are designed to move you through a process quickly, keep you off-balance, and extract as much money as possible before you leave. The average dealership visit runs close to three hours, and most of that time isn’t even spent shopping for the car. It’s spent on paperwork, financing, and being pitched add-ons you almost certainly don’t need.
The buyers who come out ahead aren’t necessarily tougher or more aggressive than everyone else. They just show up with better information and better questions.
The single biggest mistake car buyers make
Most people wait too long to start shopping for their next vehicle. They know for months, sometimes a year or more, that they’re going to need a new car, but they put off the research until they’re desperate. Then they walk into a dealership and wonder why they feel unprepared.
“Dealerships know when you walk in the door and you’re under pressure,” Reiss told me, “so they find those points where they can provide a solution that often is really the worst solution for that buyer.”
When you’re desperate, you lose leverage, and you lose the mental space to ask good questions and actually sit with the answers. If a salesperson quotes you a monthly payment that feels high, do you have time to ask how the loan is structured and what the total cost looks like over its lifetime? If you’re walking in with a lease expiring in two weeks, probably not. Starting your research early, even when you don’t technically need a car yet, buys you the most valuable thing you can have in a negotiation: the ability to slow down and ask.
The inventory trick most buyers don’t know
Before you go to a dealership, check their website to see how many of the cars you want they actually have on their lot. A dealer sitting on 10 of the same model has a problem, Reiss said. Those unsold cars are costing them money every day, which means they’re motivated to deal. A dealer with one or two of a popular model? Not so much.
“If the dealer has ten Blazers on the lot, those Blazers are costing him money because they’re not sold,” she explained, “and so he’s going to be more negotiable.”
Use that knowledge. It tells you, before you ever walk in the door, how much room you have to work with, and it gives you a concrete reason to ask for a discount rather than just hoping one will materialize.
“I noticed you have quite a few of these on the lot. Is there any flexibility on price?” is a completely reasonable question. Walking in knowing the inventory means you already know the answer before they give it to you.
Yes, you can use competing prices as leverage
Knowledge is absolutely power when it comes to shopping for a new vehicle. Reiss told me she knew someone who was buying a Mazda at a dealership in Austin, Texas, and discovered another dealer in San Marcos, Texas – just 30 minutes south of Austin – had a better price. He simply told his salesman what the other dealer was offering and asked if they’d match it.
They did. That’s it. That’s the whole move.
This works more often than people expect, and you don’t even have to physically visit another dealership to pull it off. Sites like Kelley Blue Book, Edmunds and JD Power will show you what fair market value looks like in your region. Walk in knowing that number, and don’t be shy about referencing it.
“I’ve seen this car priced at X at two other dealerships. Can you do better?” is a completely reasonable question, and asking it shifts the dynamic immediately. You’re no longer a buyer at the mercy of one dealer. You’re a buyer with options, and dealers respond to that differently.
On the extras: just say no
When it comes to extended warranties, theft protection, undercoating, paint protection packages and other such extras, Reiss’ advice was simple: Don’t buy any of it.
“You only pay for the things you have to pay for, and don’t pay anything else,” Reiss said. The non-negotiables are the car’s price, the destination fee, taxes, and usually a small documentation fee. Everything else is profit margin dressed up as protection, she said.
When the finance manager starts walking you through add-ons, the most useful question you can ask is also the simplest: “Is this required?” If the answer is no, and it almost always will be, you can decline.
Six things to do before you buy your next car:
Start early. It isn’t always possible, of course, but give yourself at least six months before you actually need the car. If you do your research when you’re not under pressure, you’ll have the time and headspace to ask good questions and actually think through the answers.
Check dealer inventory before you visit. Go to the dealership’s website and see how many of your target car they have in stock. A full lot is your friend. Walk in and ask, “I noticed you have quite a few of these. Is there any flexibility on the price?”
Know the market price before you walk in. Use Kelley Blue Book, Edmunds, or JD Power to find fair market value, then ask to see the invoice price at the dealership. That’s your real baseline for negotiation, and most dealers will show it to you if you simply ask.
Shop around and say so. If another dealer has a better price, tell your salesperson. Ask “Can you match this?” It costs you nothing and works more often than you’d think.
Question every add-on. When the finance manager presents extras, ask “Is this required?” for each one. Extended warranties, protection packages, and similar products are almost always optional and almost always overpriced.
End every negotiation with this question. Before you sign anything, ask, “Is this the best you can do?” It’s a simple question that a surprising number of people never ask, and dealers will sometimes find more room when they think you’re about to walk out the door. It absolutely cannot hurt to ask.
Got a car shopping success story or horror story? Let us know
Not all car-buying experiences are awful, or so I hear. Tell us about your best or worst — or maybe just your most recent — experiences buying a new vehicle.
We’re all about paying it forward here, so please share in the comments below. Your experience may be able to help someone else.
So, how are you doing? Really, you can tell us…
Last week, I asked you to share your biggest financial worry right now.
Longtime Ask, Save, Earn follower Julie said this…
“I’m not even sure how to voice my biggest financial worry at the moment - because it feels like EVERYTHING…”
Can you relate? I’m sure a bunch of my readers can. If you can, share what you’re thinking in the comments below. You can also ask any questions you might have. I’m always happy to help.
Until next time,
Matt