How to Negotiate Lower Monthly Car Payments

Paying monthly car payments gives you the ability to get the car you need, without having to pay cash for the entire amount upfront. Having the option to finance a car and make payments opens up many opportunities for you. You can get a plethora of different cars at a budget that you can afford. However, if the payment that you agree to is too large, then you will end up in financial trouble. Most auto loans last for at least five years. Therefore, it is essential that you do everything that you can to get your car payment as low as possible. There are a few ways that you can help negotiate a lower car payment for yourself. Here are a few things to keep in mind when negotiating your car payment.

Focus on Total Price First

While the payment is what you will eventually have to work with, it is not the first thing that you should focus on. Most car sales people are trained to get you to focus on the payment. There is a lot of financial magic that they can work in order to manipulate the payment. However, if the total price of the car is too high, it will not help you as much as it could.

Focus on the total price of the car that you are buying first. Get them to come down on the price of the car before you ever start talking about the monthly payment. Every car dealer has an amount that they can come down on for each car. Therefore, you need to get them to give you their best price before you agree to go any further with the deal. If they do not come down on the price enough for you, get up and walk out. Another dealer will want your business enough to do it for you.

Be Firm

Once you agree on a price, let them come out with an offer on the payment for you first. Once they do, let them know that the offer is too much. Tell them that you will only be able to do this if the payment is a certain amount of money below their offer. Even if you could afford the payment they gave you, it does not hurt to ask. 

Wait for Incentives

Many times, car dealers have a lot of things that they can throw in to help close the deal. They have manufacturer rebates, dealer cash, gift cards, and a lot of other things that they can do for you. If you immediately agree to the sale, they will not throw any of these things in. Waiting for incentives can play a role in how large your monthly payment is. Therefore, you need to wait until the end to agree to the deal and get your payment as low as possible.