What to say when a car dealer asks your budget? (2024)

What to say when a car dealer asks your budget?

Counter the monthly payment conversation: Your dealer may ask what you're hoping to pay for your car each month. Instead, tell your salesperson that you'd prefer discussing the car's out-the-door price and fair market value.

Should you tell a car dealer what your budget is?

"This Is the Maximum I Can Pay Each Month"

Tell a car salesperson your budget for monthly car payments, and guess what? That's what your payment will be, no matter how much the car should have cost. That's why you first want to negotiate the total price, interest rate, and trade-in value.

What not to say to a car dealer?

Should you tell a car salesman how much you want to spend?

Ask them flat out what, if anything they have that matches your requested specs. Don't tell them how much you are going to spend. They'll give out the first number and you can haggle from there. Always be prepared to walk quickly without looking back if you don't get what you want.

What do you say to negotiate a new car price?

When negotiating, it helps to be able to justify what you're asking for, he adds: “Instead of saying, 'I want to pay this,' try something like: 'I've looked at five or six different cars that are similar to yours in the market. The price range goes from $19,500 to $20,700. I'm comfortable making an offer of $19,100. '”

What not to tell a car salesman?

What should my car budget be?

According to our research, you shouldn't spend more than 10% to 15% of your net monthly income on car payments. Your total vehicle costs, including loan payments and insurance, should total no more than 20%. You can use a car loan calculator to calculate a monthly payment within your budget.

Do car salesmen really talk to manager?

For decades now, car salespeople have constantly gone to “talk my manager” for permission to negotiate during the sales process. This tactic, paired with countless other dealer antics is very frustrating for customers. If you're unfamiliar with your salesperson saying “let me go check with my manager,” you're lucky!

How much can you talk a dealer down on a new car?

The main difference will be how much you can negotiate off the retail price: New cars. It is considered reasonable to start by asking for 5% off the invoice price of a new car and negotiate from there. Depending on how the negotiation goes, you should end up paying between the invoice price and the sticker price.

Why do car dealers not want you to pay cash?

Why do dealerships not want you to pay cash? Dealerships don't want you to pay cash because they don't earn a commission on arranging financing.

How do you beat a car salesman at his own game?

You research the price you should pay before visiting the dealer. Use invoice less holdback less any known incentives. You never negotiate down from MSRP or the dealer's offer. That plays into the dealer's game.

Why not to tell a car salesman your budget?

Again, you should be deciding on what car you want — and the total price — before providing separate financial expectations to a car salesperson. If they know your monthly budget or your down payment limit, they are going to try to maximize what they can get from you, which will differ from what you want to give.

What do you say when you go to a car dealership?

Is it OK to haggle at a car dealership?

As independent franchises, dealers can sell the car at any price. Some dealerships and brands have developed no-haggle pricing. The price on the window is the price of the car, they say. In most cases, you'll still need to negotiate the value of your trade, the cost of financing and the price of any add-ons.

Are car dealers willing to negotiate?

In a normal market, anyone can get a dealer to come down on price. However, with the shortage of good used cars now, if you're not willing to pay the asking price, the dealer may opt to sell it to someone else who is.

How much is reasonable to negotiate on a used car?

Based on your pricing homework, you should have a good idea of how much you're willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you're negotiating with responds.

Is it better to buy a car in full or finance?

Paying cash for your car may be your best option if the interest rate you earn on your savings is lower than the after-tax cost of borrowing. However, keep in mind that while you do free up your monthly budget by eliminating a car payment, you may also have depleted your emergency savings to do so.

How do you not get swindled at a car dealership?

Make sure you read and understand the entire written contract. If you want to buy a car, make sure the contract you are signing doesn't have the word “lease” in it. It seems obvious but many customers are easily tricked at the dealership Bring a friend if you are not sure.

Should you put down a large down payment on a car?

There are several great reasons to make a larger down payment on a car. They include: Lower monthly payments: When you make a larger down payment, the size of your loan will be smaller. Compared with a loan with the same terms but a smaller down payment, your monthly payments will be lower.

Is $10,000 a good budget for a car?

Upfront savings are appealing when shopping for affordable and reliable transportation. Long-term expenses for potential ongoing repairs can outweigh any initial savings from a low purchase price. Buying a car under $10,000 can be a good option if you keep enough money for breakdowns and maintenance.

What is a good downpayment on a 30k car?

Consider putting at least $6,000 down on a $30,000 car if you're buying it new or at least $3,000 if you're buying it used. This follows the guidelines of a 20% down payment for a new car or a 10% down payment for a used car.

Is $500 a month too much for a car?

How much should you spend on a car? Whether you're taking out an auto loan or a personal loan to pay for your car, it's a good idea to limit your car payments to between 10% and 15% of your take-home pay. If you take home $4,000 per month, you'd want your car payment to be no more than $400 to $600.

Do car salesmen judge you?

“Do car salesman pre-judge their customers before they greet them?” Of course they do, they're human. The really lousy ones even allow that pre-judgement to affect how they treat the customer.

Why do car salesmen ride with you?

The more the car costs, the more likely they are to tag along. First to make sure that the car gets back to the lot and second, it gives them more time to work on you to make the sale. If it's a used car, they probably don't want you taking it where you can get it up on a lift and take a good look.

Do looks matter for a salesman?

A sales professional's personal appearance significantly influences how they are perceived by potential clients. It serves as an initial indicator of trustworthiness and competence.