Video: How to Negotiate for a Car

Know exactly what car you want, how much it costs, and if there are any incentives to bring the price down. Second, be flexible. You won't have much leverage if you have your heart set on that hot pink convertible, and there's only one near you. On the other hand, if you're flexible on features or colors, you're more likely to find what you're looking for. Next, if you need a loan, get pre-approved. Unless you plan to pay cash, it's a good idea to know how much you can borrow, and to have your loan ready before you see the dealer. Dealerships often advertise extra low interest rates, but often only shoppers with top credit scores will qualify, so have a backup in place. Then, don't just show up at the dealership. Before you go, request out the door quotes via email from multiple dealers, which can help when negotiating. After you agree on price, be ready for the dealer to try to sell you extras, like an extended warranty. Be sure you know what you really need, and carefully consider the costs before you sign. Lastly, this isn't combat. Treat every salesperson with kindness. The internet has given shoppers more tools than ever to negotiate. Many salespeople understand that, and they're usually reasonable about the negotiation process. One final note, and this is where the patience part comes in. Be ready to walk away if the negotiations are not going the way you want, or if you're turned off by the salesperson. A little patience with the process will help ensure you get the best price. For more car shopping tips like these, visit cars.com/news. (upbeat music)