How to negotiate the purchase of a new car

The second largest household expense after housing, a new car is not something to be bought lightly.

While negotiating the price of a new car should be based on tangible arguments, you should never try to obtain the highest discount. Indeed, the margin professionals offer on the sale of new vehicles is not infinitely expandable. Unless the manufacturer is running a promotional operation, a discount of 10 to 12% already represents a good commercial gesture. Be careful, if it’s a highly sought-after model like a convertible, a sports coupe, or a “trendy” city car, the seller will not be inclined to grant any discount. However, to make a sale, sellers can make other gestures by offering an accessory or service. An extended warranty or a maintenance contract are significant expenses for a household, and they generally represent sales aids offered to dealerships by manufacturers. Roof racks, GPS systems, high-end car stereos… similarly, accessories are “freebies” that sellers easily give away, without costing them too much. Indeed, the margins on these “extras” are higher, giving them more room to maneuver.

Adopt a “zen attitude”

The salesperson is often a shrewd psychologist and can spot a customer in a hurry at first glance. For them, an impatient customer often means a signed contract. Therefore, you should never let the salesperson know that you are interested in a vehicle or that the purchase is urgent. Enthusiasm and impatience to get behind the wheel limit the possibilities for negotiation. It is best not to get hung up on specific details such as color, upholstery, trim, model year, etc. This allows you to gauge the offers from competing dealerships in the same network and to know the availability of vehicles.  Indeed, certain models with unusual colors, certain cars ordered but ultimately not purchased, or models at the end of their model year or those from a previous model year  1 are opportunities that “clutter” dealership lots. These vehicles represent a financial investment or a means of ensuring that the sales target is reached, and sellers are often prepared to make some sacrifices to sell them!

Wait for the right time

While there’s no longer a truly favorable time to buy, three months remain quite favorable for negotiation: August, September, and January. The first two are traditionally lower sales. The third is the time for balance sheets and forecast schedules for the coming year. Similarly, it can be interesting to look out for discounts and other customer benefits offered by manufacturers. Air conditioning for 1 euro in spring, ski racks before winter, navigation or audio-video equipment before the summer holidays allow you to acquire a new vehicle for a more reasonable budget. These “free” features generally reach several hundred euros when purchased separately. Being aware of these promotions prevents salespeople from passing them off as a goodwill gesture.