How to Negotiate Car Price (and Haggle With a Dealer Like a Pro)

We all want to get the best deal when buying a car, but can you really haggle at a dealership and negotiate the price of your next car? The good news is that you can, whether you’re buying a car from a dealer or a private seller. 

How do you go about it? That’s where this guide comes in. Here, we’ll take you through the process step by step, with actionable tips on getting the best price for your next car and learning how to haggle like a pro. 

Can you haggle at a car dealership?

Yes, you can haggle at a car dealership. In fact, most car dealers expect some form of negotiation over price. And you definitely won’t get a discount if you don’t ask!

As a bit of context, the car industry has changed dramatically in recent years, with supply issues, increasing prices, the rise of electric cars, online car marketplaces and car finance options. Profit margins for car brands and dealerships have shrunk, and some car brands have tried to enforce ‘no-haggle’ policies for new cars. Even so, haggling remains the norm for both new and used cars, and most car dealers will still expect you to haggle. 

Is it worth haggling with a dealership?

It’s definitely worth haggling at a car dealership because it could help you get the car you want at the right price. In fact, a 2023 survey by car marketplace CarGurus found that just 29% of car buyers always negotiate on the price of their car, yet those who did so successfully achieved an average saving of £896.

The fact is that haggling has long been a part of the process of buying a car, and most cars are priced accordingly. Like any retail business, car dealerships work on the principle of buying a product at a certain price and selling it at a higher price to make a profit. The retail price is just one part of the equation. Depending on what type of dealership it is, there may be more profit in selling customers finance packages, accessories or extended warranties, and in services or repairs than in the cars themselves. And, unlike some products, cars generally depreciate. So the longer a used car sits on the forecourt, the less it’s generally worth. Add in all the usual business overheads such as staff and property costs, advertising, bank interest, seasonal and societal influences and so on, and it’s clear that there are lots of factors involved. 

One thing you can be sure of is that a car dealership will know exactly how much they can charge for a car and still make a profit overall.

How to prepare before negotiating a car price

Preparation is everything when negotiating a car price. Researching specs and prices, planning your budget and sorting out any finance puts you in a strong position before you start negotiating. It can help you feel in control and give you a better chance of getting the price you’re looking for. 
Here are our top tips for preparing to negotiate a car price:

1. Research the car’s true market value 

Establishing the true market value of the car (or cars) you’re looking at is central to any haggling on price. Once you know what a car is really worth, you can decide whether the price it’s listed at is a good deal, or what you’d ideally want to pay for it. And the good news is that finding out is easier than ever because all the info you need is online. 

First, it’s important to understand what we mean by a car’s market value. This is also known as its retail value, and it’s the price a buyer pays for a car. The trade value is what a dealer might expect to buy the car for, before selling it on. The trade value of a car varies depending on where it's bought from (it could be direct from a business fleet, via an auction or through a part-exchange), but since this is the price a dealer pays, it’s not something to get hung up on. 

To get an accurate picture of the retail value, you’ll need to spend some time finding similar cars for sale online. Selecting the right search filters will ensure that you’re looking at cars with the same kind of mileage, fuel type, service history, trim level and options, and which are in a similar condition. Even the location can make a difference. It’s important to do this because these can all have a major impact on a car’s value, and it’s a good idea to look at as many different sites as you can because prices can vary from site to site.  

There are lots of online valuation tools that allow you to enter the registration number of a car to find out its value, but be aware that most of these will give you the trade (rather than retail) price of a car. That’s because the majority are geared towards a dealer buying the car. One exception is Auto Trader, which also gives you the ‘private seller’ price. The private seller price is how much you can expect to pay if you buy it from its current owner instead of a dealership. It’s usually slightly lower because a private seller has no overheads to consider. 

2. Check MOT history and service records

An easy way to find out more about the condition and history of a car you’re interested in (and therefore accurately gauge its value) is to use the government’s official online MOT history checker. It’s free, and you don’t need to register or give any personal details – just enter the registration number and follow the simple instructions. 

Every car more than three years old must have an MOT every year, and the MOT history checker will give you a full rundown on each one, including the date and mileage when the test took place, details of anything it may have failed on and a list of advisories (issues to be aware of but which don’t cause a test fail).

Looking through the MOT history will give you a sense of how well (or not) the car has been maintained, as well as making you aware of any outstanding problems that the car may have. If there’s an advisory from the most recent test that hasn’t been fixed it could be something that you'll have to put right if you buy the car, and that could be a useful bargaining tool. 

A car’s service history can tell you even more about how well it's been maintained, and it plays a major role in determining its value. A car with a full service history (one that’s been serviced according to the manufacturer’s schedule) is not only less likely to develop problems, it also shows that the previous owner(s) have looked after it properly. And if the car is still within the age and mileage limit of its manufacturer's warranty, it’s only likely to be covered if there’s proof that it’s been serviced in line with official guidelines.

Some used car listings will include photos of the service book or digital service record. If not, you should ask to see these when you visit the dealership or look at the car. If the car is listed as having a full service history but this turns out not to be the case, you have a good reason to haggle its price down.

3. Set a budget and stick to it

Setting yourself a realistic budget should be one of the first things you do when you’re planning to buy a car. And whether you’re buying outright or applying for car finance, the key is to do your homework, come up with a maximum figure and stick to it. If you get seduced by all those shiny things in the showroom or get hung up on a car that’s out of your price range, you could end up overstretching yourself. If you’re buying using finance, an online car finance calculator can help, and various tools allow you to compare finance options. 

Knowing your budget will also help with negotiations over the price of the car you want to buy. With a figure (or set of figures if it’s a finance agreement) to refer to, you have something concrete to work towards when you start haggling. It’s best to keep those figures to yourself, though, because sharing them with the dealer puts the power in their hands rather than yours. 

3. Get pre-approved for finance

Getting pre-approved for car finance can help you set your budget, speed up the process of getting car finance and put you in the driver's seat (pun intended) when buying a car. 

A pre-approval for car finance means that your finance provider has confirmed that it's likely that you'll qualify for a loan, based on some basic information you've provided. It's a quick and easy process that allows you to find out how much you could borrow, the APR and the repayment terms, along with any terms and conditions that might apply. 

Although it's not a guarantee of qualifying for a finance agreement, a pre-approval is a useful next step that can accelerate the process of getting finance and give you confidence in how much you can spend. Bear in mind, however, that it may be better to negotiate the price of a car with a dealer before letting them know you have pre-approved finance because it could affect how they calculate their profit margin. 

Bring these with you when you go to negotiate

It’s important to be prepared when you negotiate a car price. To help things go smoothly it’s a good idea to make sure you bring everything you need with you on the day. Here’s a checklist of what to have on hand:

• Market research: bring along any relevant car price research, including details of similar cars and examples at other dealerships – this could be a list of links or adverts that you’ve saved on relevant apps or sites
• Budget information: you’re likely to have a headline figure but it could be useful to have any additional figures or calculations handy
• Finance pre-approval: If you have pre-approved finance it’s worth taking details of this as a reference, and potentially to compare with any finance offered by a dealer
• Personal documents: Don’t forget to take your driving licence and ideally another form of identification – these will be needed if you want to test drive the car

How to haggle with a car dealer (Step-by-Step)

As we’ve discussed, haggling is a normal part of the car-buying process, especially at dealerships. So far, we’ve looked at how to prepare to haggle with a car dealer, now let’s get into the nitty-gritty of how to negotiate a car price with our step-by-step guide. 

Be polite but confident

It pays to be courteous, polite and respectful when you’re negotiating the price of a car – if you behave that way, the salesperson is more likely to behave that way back. Don’t be afraid to be clear about what you want, but do it in a way that keeps the discussion focused yet friendly.

Start lower than your budget

Haggling over the price of a car is a negotiation, and you can expect some back-and-forth. So, don’t go in with your maximum price first – give yourself some leeway to work up to a price that works for you. Don’t start unrealistically low, because that way the dealer or seller might not take you seriously.

Use any issues as leverage

Once you’ve looked at or driven the car, if you feel it has any issues (cosmetic or mechanical) that weren’t mentioned on the listing you have every right to ask the price to be lowered to reflect this. 

Be ready to walk away

If you can’t get the price you want, or which you feel is fair, then you can always walk away from the deal. Politely, of course, we’re not suggesting you literally storm out of the showroom in a huff! 

Remembering that you can always move on, and that many more cars might be right for you, can help give a sense of perspective when negotiating. 

What can you negotiate besides the car price?

If a car dealer simply won’t budge on the price of the car you want, it may still be possible to save yourself some money by getting some extras thrown into the deal. Of course, it’s only worth it if these were things that you were expecting or intending to pay for in the first place. 

Extras that you may be able to get worked into the deal include: 

• Extra warranty cover
• Free servicing
• A full tank of fuel
• Road tax
• Floor mats/boot liner
• A higher part-exchange price
• A deposition contribution
• A better finance rate

A better finance rate can make a big difference to what you pay overall. The interest rate and terms of car finance provided by a dealer can vary and may be negotiable. You don’t have to take finance from the dealership; arranging it in advance through a provider such as Carmoola can give you greater transparency on the cost of borrowing before you choose your car.

With Carmoola, you can use our car finance calculator to get an idea of what your repayments might look like, though the actual rate offered will depend on your individual circumstances.

How much can you haggle with car dealers?

The amount that you can haggle off the price of a car can vary dramatically. If you’re buying a new car you’ll find that some brands (mainly the more premium ones) operate a ‘no-haggle’ policy while others regularly offer discounts and dealer incentives, and you could negotiate a saving of between 5 and 15% on the list price. 

It’s a similar story with used cars, and in each case it will depend on the price, the type of car, the dealer, any seasonal factors or sales targets and many other factors. As a ballpark figure, however, a discount of 5-10% of the listed price is about average. Aiming for more than that is overly optimistic unless the car is nothing like it was described in the listing. 

Negotiating with private sellers vs. dealers: what's different?

Negotiating a car price with a private seller can be quite different to negotiating with a dealer, because a private seller doesn’t do it for a living. A private seller also won’t have additional products or services to factor into the deal, and they won’t be offering you any finance. Bear in mind, too, that there are various reasons why a private seller might be selling the car, whereas a dealer is simply doing business. 

Private sellers are likely to be less experienced in the art of haggling and unlikely to have such detailed knowledge of the car market. You may also find that getting a good deal from a private seller has more to do with how you connect with them on a personal level, so it pays to remain polite and cordial. 

Mistakes to avoid when negotiating car price

The biggest mistake to make when negotiating a car price is to be underprepared. If you have no idea how much the car you want to buy is really worth, or the value of any trade-in you have, you’re completely at the mercy of the seller, who can easily tip the balance in their favour. 

It’s also important to conduct yourself well in any negotiations, since you’re unlikely to get a good deal if you offend or annoy the seller. 

Best times to haggle or buy a car

The best time to haggle or buy a car is when the dealer or seller is extra-keen to make a sale, and therefore more willing to budge on the price. Dealers may have monthly, quarterly or annual targets to hit, for example, so they may be more open to haggling towards the end of those periods.

If you’re looking at a newer car, the change in registration numbers at the beginning of March and September can mean that those with the current number can be easier to get a discount on in the preceding month or so. The build-up to Christmas is traditionally a very quiet time for car dealerships, too, so it’s an especially good time to bag a bargain. 

Seasonal factors also make a difference. Convertibles tend to fetch higher prices in spring and summer, so you could get a better deal in the dead of winter. Summer is the best time to haggle the price of a 4x4 because these are generally in higher demand in autumn and winter. 

Even the day of the week can be a factor. Car dealerships are often busier on a Saturday, so if you visit earlier in the week, you may get more one-to-one time with a salesperson to negotiate a deal.

Your car price negotiation checklist

• Research the car’s value thoroughly
• Check its MOT and service history
• Set a budget and stick to it
• Get pre-approved for finance
• Choose a good time to buy/haggle
• Be polite but confident
• Start lower than your budget
• Use any issues as leverage
• Be ready to walk away
• Haggle for extras if you can’t on the price

Want to get a head start on your car price negotiation? Get your finances sorted first

Negotiating a car price can be well worth the effort, since it could end up saving you money. Preparation is key, and getting your car finance sorted up front can really help. Whether you’re buying from a private seller or a dealer, getting pre-approved for car finance through a provider can give you more clarity and leverage before you start negotiations.

Carmoola can give you an indication of your budget, helping you plan ahead. Just remember that finance is subject to status, and terms and conditions apply. Taking time to compare different options will help you find the one that’s right for your circumstances.

See if you qualify for car finance today. Get your budget in just 60 seconds and start planning your next car with confidence.