Car Finance Expert Reveals Negotiation Tips for Securing the Best Deal on Your Vehicle

With the car market gradually on the grow, more and more motorists across the country are looking to add a vehicle to their driveway. The used car market has witnessed a 4.1% uplift in car sales compared to last year, with a record demand for used hybrids and electric vehicles.

Despite an increase in purchases, the price tags of motors in the UK aren’t exactly the cheapest they’ve ever been. Due to poor availability and high demand, the cost of second-hand cars has now risen for 40 months in a row, although prices have significantly softened in recent times.

If you’re hoping to bag a used vehicle, closing a good deal can help you save precious money and keep your finances in check. With this in mind, Jonathan Such, head of sales at vehicle finance company First Response Finance, reveals some negotiation tips for clinching the best financial agreement possible.

Do your research

Before setting foot into a dealership or getting in touch with a lender, it is vital you do your own homework and research.

Such explained: “First things first, think about the models that best match your needs and tastes, and jot down a few vehicles that most appeal to you.

“Once you’ve made up your mind about the motor that ticks all the right boxes, browse the nearby dealers that offer the most convenient prices and benefits on your chosen vehicle.

“This way, you will know exactly what to expect when you’re shown the car’s price tag in person, meaning you won’t be taken for an expensive ride.

“What’s more, when applying for a car loan, make sure to find out the basics, such as your credit score and the current interest rates. This will arm you with the knowledge you need to secure an advantageous finance option that makes your purchase manageable rather than unsustainable.”

Don’t reveal your true budget

Now, this doesn’t mean you should be dishonest with the dealer. But it’s always worth knowing precisely what your maximum budget is and keeping it close to your chest.

If the salesperson asks you what your top limit is, don’t reveal it to them straight away, as they are likely to use this information to close a deal that’s more beneficial to them. At the end of the day, this is how the world of business operates!

Instead, begin by stating an amount that’s lower than what you are actually prepared to pay. This will give you plenty of wiggle room when negotiating the final price and, if necessary, to increase your initial proposal with more confidence.

By the end, you will meet a middle ground that is reasonable for the dealer and a satisfying discount for you.

Focus on reducing the purchase price

One of the best ways to secure the best deal on your new car is to negotiate the asking price.

If you are able to reduce the initial cost of the actual vehicle, you could benefit from a more affordable loan and cheaper monthly instalments.

Buying a motor with a lower price tag means that you will end up borrowing less money, resulting in turn in less interest over the life of the loan.

Bear in mind that dealerships are often open to offering discounts, incentives, or rebates that can decrease both the vehicle’s purchase value and the car loan – so, don’t be shy!

Get the timing right

Timing your car shopping can help you bag a decent deal on your next vehicle, too.

Experts say that the best months for bargain hunters are June and December, as people are less likely to make a hefty investment ahead of the summer or Christmas holidays, and dealers might be more obliging to accepting buyers’ offers without testing their luck.

Visiting dealerships at this time of the year can also make you one of a smaller group of motorists who are ready to make a purchase. So, if you sign the dotted line in June and December, you might be able to cruise away with a better deal.

What’s more, consider popping by a dealership towards the end of the month. There is a chance that salespeople may have already reached their monthly sales target, meaning they might be more willing to let you drive off at a more budget-friendly price.

Ask openly for extras and discounts

As mentioned, don’t refrain from asking about discounts and extras – it’s all part of the car-buying game! Remember that if you don’t ask for a better deal, you are unlikely to get one.

When negotiating a deal that’s more in line with your preferences, try to be as positive as you can. Rather than saying ‘Can I have a discount?’, put the dealer on the spot and ask how much discount they are ready to offer you.

Keep in mind that salespeople are there to secure a deal, too. So, even if they might show resistance at first, they are likely to accommodate some of your requests along the way.

On top of price discounts, you could also aim for specific add-ons. From breakdown cover to sat-navs and a set of new tyres, you might bag some extras that will make your deal more worthwhile.