Buying a car - how to negotiate the best deal

By Marc Lockley

Alphabet B Buying a car is an expensive business. But with a few hours' research and preparation you can potentially save yourself thousands of pounds on a new vehicle.
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1. Decide upon your car. List your must-haves: for example, mid-size car, diesel engine, and your nice-to-haves: climate control, CD player etc. Research vehicles that have all your must-haves and as many of your nice-to-haves as possible. Do this for at least two vehicles from different manufacturers.

List your must-haves: for example, mid-size car, diesel engine, and your nice-to-haves: climate control, CD player etc. Research vehicles that have all your must-haves and as many of your nice-to-haves as possible. Do this for at least two vehicles from different manufacturers.

2. Buy at the end of the month. A good time to buy a car is at the end of the month when showroom targets need to be achieved - this is when the transaction needs to occur, so start your conversations earlier.

3. Familiarise yourself with the deals. Use the internet to get the best quote for your car. Buying in Hampstead? Still look at a dealership price in Ayrshire.

4. Test-drive your car. Armed with the prices, details on your vehicle and knowledge of at least one competitor car approach your local dealer and ask for a test drive. Show you like the car, but don't show you love the car.

5. Start the negotiation. Ask what they could offer you as an on the road price. Use your research to good effect, mentioning your competitive information; for example, "that's too much; X is a similar vehicle for £2000 less" and say you need them to improve the price. With the new price, state you will consider the offer.

6. Go back for more. Phone or return to the showroom; say they need to lower the offer to get you to buy saying, for example, something along the lines of "I spoke to a showroom in Lymington and they could do the same model with similar mileage for £750 less." For the sake of a £15 rail ticket it would be worth the journey.

7. It's so close no-one wants to lose it now. When you feel you have got the lowest price, say to them "If you include a free tank of petrol I will buy now."

8. Used, new or pre-registration. If you need an expert's advice when buying a used car; for a fee, the AA will give an independent mechanical inspection. With a new vehicle the Government Car scheme (see www.guardian.co.uk/business/2009/may/18/car-scrappage-scheme-launch) offers you £2000 off a new car in return for scrapping your old vehicle if it's more than 10 years old.

Pre-registration cars can offer you great value with only a few miles on the clock – ask dealers for availability. Negotiation applies to all.

9. Save 2½% automatically. Don't forget VAT is lowered to 15% until January 1, 2010.

Written by Marc Lockley, a negotiation coach who writes for writes for Guardian online and is the author of 'How To Pay Less For More: the consumer's guide to negotiating the best deals - whatever you are buying'. This article was published on October 15, 2009. Marc's opinions are his own and for general information only. Always seek independent financial advice.

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