Car Buying Cheat Sheet: Former Dealer Shares How to Negotiate Car Prices Confidently

Our team of Car Coaches combines decades of experience in the automotive industry to help you, the consumer, buy a car without the hassle. That’s why we created this must-have resource for buying a new or used car at a dealership, whether in person or through the internet sales department. This car buying cheat sheet will help you negotiate car prices confidently, so you can drive away feeling proud of what you’ve accomplished.

Thank you to CarEdge’s Ray Shefska (former dealership sales manager) and Kimberly Kline (former dealership finance manager) for putting this together for car buyers everywhere!

Want to download printable versions of all CarEdge cheat sheets? Find them all here.

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How to Negotiate Car Prices with a Salesperson

Use this cheat sheet to negotiate the best auto loan rates on new or used cars!

The best way to learn how to negotiate car prices effectively is to prepare for the situations and conversations you’re likely to encounter with the salesperson and finance manager. Feel free to print off this cheat sheet and bring it with you! Without further ado, here’s how an informed, prepared car buyer can expertly negotiate.

Salesperson: What do you want your monthly payment to be?

You: I’m not concerned with the monthly payment, I am only focused on the total out-the-door price.

Salesperson: So you’re paying cash?

You: I haven’t determined exactly how I plan to pay for it. I am only concerned about the total out-the-door price.

Salesperson: So you have a monthly budget in mind?

You: I have a total out-the-door price in mind, so I would only like to discuss that at the present time.

Salesperson: OK, how much cash will you be putting down?

You: I haven’t decided that yet and I won’t until we establish an acceptable total out-the-door price.

Notice a trend here? You really really want to stay laser-focused on the only number that matters this early in the game: the out-the-door price. Salespeople will try hard to learn more about how much money you’re willing to spend. If that can get you to talk about monthly payments, they immediately have an advantage over you. That gives them leverage to play with higher interest rates, longer loan terms, and lower trade-in offers. None of those are good for you, the buyer.

Salesperson: What are going to do with the car that drove here, will you be trading it?

You: I haven’t decided yet. We can discuss that as a possibility after we agree to an out-the-door price.

Salesperson: Now that we have agreed to the out-the-door price, what about the car you drove here, will you be trading that in?

You: I might, it depends on whether or not you can match or beat these written offers that I have already received.

Salesperson: Now that we have agreed to the out-the-door price and agreed to the value of your trade, what do you want your monthly payment to be?

You: I’ll only discuss that with the Finance Manager.

Salesperson: Will you be putting any cash down?

You: I’ll be more than happy to discuss all of that with the Finance Manager. If you provide me with a credit application I’ll be more than happy to fill that out for the Finance Manager.

Salesperson: The Finance Manager will be with you shortly.

How to Negotiate the Best Auto Loan Rate with the Finance Office

Use this cheat sheet to negotiate the best auto loan rates on new or used cars!

NEW in 2024: Due to popular demand, we created this additional FREE guide: Auto Financing Cheat Sheet

Finance Manager: I assume that you have given some thought to a monthly payment and loan term that will be comfortable to you.

You: I have indeed and I have also secured a pre-approval from my credit union as a possibility for my loan.

Finance Manager: Would you consider financing through us?

You: I would assuming that you can beat the pre-approved rate that I have. Here is the pre-approval terms sheet from my credit union with all the particulars.

Finance Manager: So if I beat the rate you will finance with us?

You: Yes, if you beat it by at least ¼ of a percent. And I promise to at least listen to any finance and protection packages that are available.

Finance Manager: So you are open to some of our programs?

You: Possibly, if we can agree to a reasonable selling price on any items that I think have value. Oh, and if I do buy any products I would at least expect you to give me the buy rate from the bank on my loan. Once again though, you will need to beat my credit union rate by at least ¼ of a percent for me to even consider it.

Finance Manager: Great, let’s get started.

Finance Manager shares the MENU with additional products.

You: But first, before we go over product benefits, where is my base payment, amount financed, term and interest rate?

Finance Manager shows them to you.

You: Is there a prepayment penalty if I finance with you?

If there is no prepayment penalty, proceed with considering their menu options.

These are products you might see on the menu, and questions to ask: