If you walked up to the cashier at your local grocery store with a gallon of milk in hand and said, “It says $2.49 on this sticker, but I’ll give you a buck-fifty,” you’d be going home thirsty. If you walked into McDonald’s and said, “I don’t see a lot of people eating Big Macs today; I’ll take that value meal off your hands for just three bucks!” you’d leave hungry. But walk into a car dealership, and you areexpected to bargain with the salesman. Pay sticker, and you’re giving the dealer hundreds or—in most cases—thousands of dollars in additional profit.
Considering that the car dealership is a business and performing a necessary service—getting the car from the factory to you—some profit is definitely deserved. How much is fair profit depends on a number of factors, including the specific car and demand for it, the options, your location, and how long the car has been on the lot. So we can’t tell you exactly what to pay. But we can tell you what to do to optimize your chances of paying what you want.
Shop for Your Own Financing
For most of us, financing is the only way we can afford a new car. Most dealerships can provide you financing, but be sure to check at your bank or credit union before you go, as they will often offer you a better interest rate. At the very least, shopping around will give you an idea of what rates you qualify for, so you can police the dealership’s offer later. For more on what to do prior to visiting the dealership, read “What to Know Before You Go.”
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