The Consumer Price Index finds that used car prices increased by a whopping 21 percent from April 2020 to April 2021, with much of that increase in the last few months. New cars are in high demand as well, with cars like the popular Kia Telluride selling for $5,000 to $10,000 or more above Manufacturer Suggested Retail Price (MSRP) across much of the country. But hope is not lost! There are proven negotiation strategies to help you whittle down that car price before buying. When I purchased a new car—a 2021 Subaru Forester—in early May, these strategies saved me over $2,000 off MSRP, increased the value of my trade-in by $1,000 and scored me a free synthetic oil change. By implementing a few, simple tactics, you can get rid of any anxiety you may have about negotiating your car purchase—and save some money in the process. If you are buying used, remember to take the car to a mechanic prior to signing on the dotted line. Use your mechanic’s inspection report and detailed pricing for needed repairs as part of your negotiating tool kit. You can save thousands of dollars using this strategy—and save yourself the financial and logistical hassle of fixing a car you just bought. Once you’ve decided on a fair price, you can approach negotiating in two distinct ways. You can “haggle” or you can state your price, stick to your guns, and walk away if they say no. Unfortunately, right now is definitely a seller’s market, so the walk-away strategy has a smaller chance of working, even if you offer a fair price.
