Unless you’ve got Scrooge McDuck money, buying a new car can be beyond stressful.
Aside from the financial strain of such a substantial purchase, there are other aspects of the process that require us to do things that often feel unnatural and can instantly shoot your anxiety through the roof.
Take, for example, negotiating the price of the car. If haggling isn’t something you normally take part in, wheeling and dealing to get the best bargain can feel deeply uncomfortable.
So how can you drive off the lot in something you love without giving up your life savings — and dignity?
That’s what we — Raj Punjabi and Noah Michelson, the hosts of HuffPost’s “Am I Doing It Wrong?” podcast — asked Jessica Caldwell, the executive director of Insights for the car shopping website Edmunds, when she recently dropped by our studio to share her secrets for buying a new ride.
Listen to the full episode by pressing play:
The three juiciest tips she provided were about how to negotiate swiftly and effectively — and they’re all power plays.
First, it’s crucial to let the salesperson pitch a price before we make an offer, Caldwell told us.
“Let them give you a price if you’re interested in a vehicle, because whoever goes first is generally in the weakest position,” she said. “I know people who say, ‘I’m willing to pay $35,000 and that’s it!’ … and that might actually be good, and the [salesperson will say,] ‘Yeah, OK!’ and then you just left money on the table.”
Resisting the urge to blurt out a number will give you the upper hand as you begin to negotiate the cost.
“Say, ‘I’m interested in this car. What’s the best deal you’re gonna give me?’ and then see what they say,” Caldwell said.
Tip No. 2 involves harnessing the power of your credit score.
“If you have good credit, just be like, ‘Well, run my credit,’” Caldwell said, explaining that if it’s a solid or high score, the salesperson instantly knows the transaction will probably be more straightforward and less challenging.
“At that point, they know that you can afford the car and that you’re going to qualify for the top-tier financing, so it’s going to be easier to get you approved.”
In other words, a great credit score indicates that you’re an ideal customer — and that they can get this deal done in as little as 30 minutes — so it’s a good idea to flaunt what you’ve got early in the negotiation process.
Tip No. 3 is all about confidence.
“Walking away is the most powerful tool you have,” Caldwell said.
Car dealerships are not like Amazon in terms of the volume of product they’re selling, she reminded us, which means every customer that walks through the door is valuable to them — and they want to do whatever they can to close a deal.
“You don’t have to shop in a 10-mile radius. You can shop across the country, you can have a car delivered to you,” she noted. Salespeople know how they treat their customers truly matters, and if the price or the interaction feels off, you should be prepared to leave.
Caldwell understands that the thought of using this tactic makes some buyers especially uncomfortable, but she reminded us that this is our hard-earned money and we should spend it wisely — and feel good about the deal we’re getting.
“Be emotionally prepared to walk away because many times, they will chase you,” she said. “They will follow up. They will text you or call you with a better deal than when you sat there.” It may not feel great, she acknowledged, but sometimes it’s worth saying no if you know you can do better.
We also chatted with Caldwell about what type of research we need to do before we head to the dealership, what to know if you’re going to buy a car online, and much more.
Listen to the full episode above or wherever you get your podcasts.
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For more from Jessica Caldwell, visit Edmunds.com and find her on X/Twitter.
Need some help with something you’ve been doing wrong? Email us at [email protected], and we might investigate the topic in an upcoming episode.