Do you plan to negotiate the price of your car yourself? Here’s how to know the “real” cost of a new vehicle, and more importantly, how to use that information to lower the price.
First tip before signing up for the purchase of a new car: do not start a discussion with the seller by announcing the amount of monthly or weekly payments that your budget allows you. This amount should not be taken into account in the negotiation, since it is easy to reduce it by extending the financing period or by increasing the down payment.
The important thing here is to know the final price of the vehicle before calculating the payments. You will be able to address financing issues – and compare the different options available to you – at a later stage of the negotiation.
Knowing the cost price before negotiating can be a valuable asset for you. The cost price is the amount paid by the dealer to the manufacturer to acquire the vehicle. Deduct the cost price from the sale price and you get the dealer’s profit margin. In theory, the more important it is, the more you can negotiate.
Once you know the cost price of a vehicle, it is best to keep that information to yourself. A Protégez-Vous mystery shopper noticed that some sellers try to discredit the various sources of such information.
Negotiate and stay credible
So, without mentioning that you know this amount precisely, you can negotiate with the trader while still being credible and offering prices that he will be able to accept.
Three options to know the amount of the cost price
• The unhaggle.com web platform offers this information free of charge.
• The carcostcanada.com site charges $ 30.
• The Automobile Protection Association (APA) makes it available to its members (with an annual subscription of $ 77).
According to CarCostCanada and Unhaggle, you can negotiate a price 3-7% above cost. For example, if your dealership paid the car builder $ 32,000 for the car, you should be able to get a purchase price between $ 32,960 and $ 34,240.
This article is taken from our guide 100 Trucs Auto, produced in partnership with the Office de la protection du consommateur, available at newsstands and in our boutique.