Before you hit the car lot, check for any factory or dealer incentives offered on the car you want. Search online for the make of your car and type in “factory and dealer incentives.” Doing a little homework is an easy way to walk in with another bargaining chip to lower the car’s sticker price. Or, if you’re planning to trade in a car, find the trade value of your old car in Kelley Blue Book.
While the car’s maintenance history and condition will affect the trade-in value, dealers are notorious for low-balling consumers when purchasing their trade-in. Make sure you don’t get taken advantage of and set reasonable expectations based off of your car’s Kelley Blue Book resale value. Don’t be afraid to ask questions or ask if they can offer more; it doesn’t hurt to be straightforward and honest when you negotiate.
– Justine Rivero is the credit advisor for Credit Karma, a credit management and education company for consumers and based in San Francisco.
