Buying a new car is an exciting experience, but the negotiation process can be intimidating. Many buyers end up paying more than necessary because they don’t know how to negotiate effectively. Whether you’re purchasing your first car or upgrading to a newer model, getting the best deal requires research, strategy, and confidence.
In this guide, we’ll walk you through proven tactics to negotiate the best price on a new car in the USA—ensuring you drive away with a great deal.
1. Do Your Research Before Visiting the Dealership
Knowledge is power when it comes to car negotiations. Before stepping into a dealership, gather as much information as possible:
Know the Invoice Price
The invoice price is what the dealer pays the manufacturer. While the MSRP (Manufacturer’s Suggested Retail Price) is the advertised price, the actual cost to the dealer is often lower. Websites like Kelley Blue Book (KBB), Edmunds, and TrueCar provide invoice pricing, helping you understand a fair target price.
Check for Incentives and Rebates
Manufacturers frequently offer cash rebates, low-interest financing, or special discounts (e.g., military, student, or loyalty incentives). Visit the automaker’s website or ask the dealer about current promotions.
Compare Prices at Multiple Dealerships
Get quotes from at least three different dealerships. Many dealers offer online pricing, making it easier to compare. Use this information to leverage better deals.
2. Time Your Purchase Strategically
When you buy a car can significantly impact the price. Consider these timing strategies:
End of the Month, Quarter, or Year
Dealerships have sales quotas to meet, and salespeople are more motivated to negotiate at month-end or year-end to hit targets.
Holiday Sales Events
Major holidays (Memorial Day, Labor Day, Black Friday, Year-End Clearance) often bring special discounts.
New Model Releases
When a new model arrives, dealers discount previous-year models to clear inventory.
3. Get Pre-Approved for Financing
Dealerships make money on financing, so they may push for higher interest rates. To avoid this:
Check your credit score (aim for 720+ for the best rates).
Get pre-approved from banks, credit unions, or online lenders.
Compare the dealer’s financing offer with your pre-approval to secure the lowest rate.
4. Negotiate the Out-the-Door Price, Not the Monthly Payment
Salespeople often focus on monthly payments to obscure the total cost. Instead:
Ask for the “out-the-door” price (total cost including fees, taxes, and add-ons).
Negotiate the vehicle price first, then discuss financing and trade-ins separately.
5. Be Willing to Walk Away
Dealers use pressure tactics to close deals quickly. If the price isn’t right:
Politely decline and leave.
Often, they’ll call back with a better offer.
Having multiple dealership quotes gives you leverage.
6. Avoid Unnecessary Add-Ons
Dealerships push extended warranties, paint protection, VIN etching, and other extras—many of which are overpriced.
Politely decline add-ons or negotiate them separately.
If you want an extended warranty, compare third-party providers for better rates.
7. Consider a Car Buying Service
If negotiating isn’t your strength, services like:
Costco Auto Program (pre-negotiated prices)
Consumer Reports Auto Program
Go Amazon Go (exclusive deals for members)
can help you secure a fair price without haggling.
8. Trade-In Tactics
If trading in your old car:
Get multiple appraisals (CarMax, Carvana, local dealers).
Negotiate the trade-in separately from the new car price.
Sell privately for a higher value (though it takes more effort).
9. Final Steps Before Signing
Before closing the deal:
✅ Review the contract carefully (check for hidden fees).
✅ Verify the agreed-upon price and incentives.
✅ Test drive the car again to ensure no issues.
Final Thoughts
Negotiating the best price on a new car doesn’t have to be stressful. By researching, comparing offers, and staying firm on your budget, you can save thousands. Remember:
✔ Know the fair market price.
✔ Time your purchase wisely.
✔ Secure financing beforehand.
✔ Avoid unnecessary add-ons.
✔ Be ready to walk away if needed.
For exclusive car-buying deals, check out Go Amazon Go for member-only discounts.
By following these steps, you’ll drive off the lot with both a great car and a great deal!