15 Techniques for Negotiating with Car Dealerships

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8. Secure Third-Party Financing

A very effective technique for negotiating with car dealerships is to secure financing for the car purchase from your bank or other resource before going car shopping. Most banking institutions will let you apply for a car loan up to a maximum amount, and will provide a check for you to give to the car dealer. You will not be obligated to use this loan; however, it can be a very effective negotiating tactic with the dealer to see if they can beat the interest rate, or give you a better deal on the car since you have financing already in hand. For those who hate saying no to the salesperson, this can also be an effective countering tactic to the upsells that occur while waiting on the dealership’s financing shop to get back to you on what they can do for your loan.