Why is it important to “haggle” when negotiating to buy a car?

Make sure you’ve worked out what you can afford and have done plenty of research into the car you’re planning to buy – including the list price.

Whether you’re paying cash, part exchanging or organising a finance plan, car dealers’ prices aren’t fixed.

So arm yourself with our top tips below.

• Be friendly and polite, but avoid letting the salesperson know your top limit.
• If you’re a cash buyer, don’t tell the salesperson this straight away. Dealers make bigger profits on finance deals, so let them bargain the car’s price on this basis. You can then decline the finance deal later in the process.
• Start off by stating an amount lower than what you’re actually prepared to pay – you can then gradually increase it if necessary.
• When you make an offer, don’t speak again until the salesperson replies.
• Be as positive as possible about your aims. For example, don’t say “Can I have a discount?” Instead, ask “How much discount will you give me?”
• Some negotiators start by saying they’re not prepared to pay the price advertised, but remember they ARE there to do a deal!
• If you’re struggling to get a discount but you want the car, offer to close the deal there and then if you can both agree a price.
• Don’t be afraid to walk out if the dealer isn’t prepared to negotiate or move much on the price.

When you’ve agreed a deal, it’s still possible to get out of your car finance arrangement.

Buying a used car from a dealer is less risky than buying privately because you have more consumer rights if the car shows serious faults later.

Many of our top tips above apply when negotiating with dealers over used cars.

Buying a used car privately will usually get you a better deal than when buying through a dealer.

Private sellers are often keen for a quick sale and so more likely to be open to haggling.

They might have already seen a car they want to buy and are under pressure to sell their old car.

Or perhaps they’ve already bought another car and have to run two cars until they sell their old one.

Whichever way you buy a used car, you’ll have more bargaining points than with a new car.

For example:

• technical faults
• tyres in borderline condition
• an incomplete service history or MOT
• damage to the car such as dents or chips
• the car being due for expensive cam belt change.

If possible, try to find out how long the seller has been marketing the car.

Have they had a sign up in the window for a while?

Or advertised it in the local paper for a week already, or had it on a site such as Auto Trader for a month?

If you haven’t already decided how you’re going to pay for your car, find out about your options as soon as possible.

If you have problems with your car, your consumer rights might be influenced by how you paid for it.

This is an important consideration.

No-haggle car buying means the dealership reveals the true cost of the vehicle upfront. What you see on the sticker or online is what you pay. This can save time that would be spent negotiating and offer buyers some peace of mind going in for the purchase.  

No-haggle pricing can lead to a better deal on a car, but this isn't a guarantee. Sometimes the opposite can occur. For instance, a dealership may lock the price above MSRP for cars low in supply and high in demand. 

Many drivers loathe the car buying process. It takes time and energy to browse lots and joust with trained salespersons. It's hard to walk away without feeling like you could have saved more when it comes to both time and money. No-haggle car buyinghelps streamline the process and eliminate some of the anxiety associated with spending your day off in a car lot. 

One important thing to note about no-haggle pricing — it is the promise of transparency and convenience, not the promise of a low price. You should do your research beforehand and determine the market price of the vehicle before going through with a purchase. Just because a car is listed as no-haggle doesn't guarantee you're getting a deal. However, some drivers may be willing to pay extra to avoid the hassle of negotiating. 

Can you negotiate a no-haggle price?

Haggling is sort of a lost art in today's economy. Most people don't haggle for groceries or furniture unless they're at a garage sale or farmer's market. Car prices, however, continue to be negotiated; whether they're at a large corporate dealer or a local mom-and-pop shop, people expect to haggle.

That said, most dealers who advertise no-haggle policies, especially larger ones, have ingrained it into their business model. This means you are usually unable to negotiate the price of a no-haggle vehicle. You may, however, be able to find exceptions at local dealerships with less strict guidelines. 

Remember to take other factors into account that could affect the overall price you pay. For instance, are you trading in a vehicle, and how much are they are offering? If a dealership offers no-haggle pricing but shorts you on your trade-in, it could cut into your potential savings. Beware of "no-haggle" dealers who sell expensive add-ons and warranties. Also, you still have to pay taxes and service fees. If you took out a loan to pay for the car, there may be administration fees for that as well. In short, prepare to spend more than the sticker price, even when buying from a no-haggle car dealer. 

The bottom line

Shoppers unsure of the no-haggle price meaning may wonder if dealerships mean this literally. The vast majority of the time, the answer is yes. A no-haggle price means the sticker price is the true price you pay for the car, not a starting point for negotiations. 

No-haggle car buying lets shoppers easily compare the price of vehicles from different dealerships. It saves time and effort, which many drivers deem invaluable, even if it may not always save money. No-haggle usually refers only to the sticker price of the car. That's not, however, the only price involved in buying a car. Taxes and fees, plus finance charges should be taken into account. If you have a trade-in you're looking to part with, be ready to negotiate the price of that as well. Do your research beforehand so you know the market value of your old vehicle.

What must you do to negotiate a good car price besides haggle?

What strategies were most effective during the haggling process?

Why do we haggle?

What is a reasonable amount to negotiate on a new car?