How to Negotiate With Cargurus: Essential Tips
Negotiating with CarGurus is possible if you come prepared! Focus on the car’s actual market value, be ready to walk away, and understand that while CarGurus is a platform, the actual negotiation happens with the dealer selling the car.
Buying a car can feel like a big step, and sometimes, seeing a price tag makes us wonder if we can do better. If you’ve found a car on CarGurus, you might be asking yourself, “Can I actually negotiate the price?” The good news is, yes, you often can! Think of CarGurus as your starting point, a super helpful tool to see what cars are listed for. But remember, when it comes to the final price, you’ll be talking directly with the dealership. Don’t worry if this sounds a little daunting; I’m here to break it down. We’ll go through exactly how to approach this, making sure you feel confident and ready to get the best deal possible on your next car.
Understanding How CarGurus Works for Negotiation
CarGurus is a fantastic place to start your car search. It compares prices from many dealerships, helping you see if a specific car is a good deal or if it’s priced above, at, or below market value. This comparison is your first secret weapon in negotiation. While CarGurus itself doesn’t set prices or negotiate for you, the information it provides is crucial for talking with the seller.
The prices you see on CarGurus are set by the dealerships. This means that individual dealers have the freedom to negotiate. Some might be more flexible than others, especially if a car has been on their lot for a while, or if they have a specific sales target to meet for the month.
Your goal is to use the CarGurus data to approach the dealer with informed talking points. You’re not just a shopper; you’re an educated buyer who knows the market. This positions you well to have a more productive conversation about the price.
Preparation is Key: What to Do Before You Talk Price
Going into a negotiation without preparation is like going into a test without studying. You might get lucky, but it’s much less likely you’ll get the outcome you want. Here’s how to get ready:
1. Research, Research, Research!
This is the most important step. CarGurus already does some of this for you by showing you the market analysis for a specific vehicle. Take advantage of this!
- CarGurus Deal Rating: Look at the “Good Deal,” “Great Deal,” or “Fair Deal” rating. This gives you a quick snapshot of how the car is priced compared to similar listings.
- Price History: CarGurus sometimes shows the price history of a listing. If a car’s price has dropped significantly, it might indicate the dealer is eager to sell.
- Comparable Listings: See how the car you’re interested in stacks up against similar cars (make, model, year, mileage, features) within a reasonable driving distance. Note down prices of comparable vehicles.
- Vehicle History Report: Get a vehicle history report (like from CarFax or AutoCheck). Any red flags or minor accident history can be a point for negotiation. You can often purchase these directly through CarGurus or from independent providers. For more on understanding these reports, check out resources from the National Highway Traffic Safety Administration (NHTSA) on vehicle safety and recalls.
- Condition of the Car: If you can, get a pre-purchase inspection (PPI) from an independent mechanic. This can uncover issues that the dealer might not have disclosed, giving you leverage.
2. Know Your Budget and Financing
Before you even think about negotiating the sticker price, you need to know exactly how much you can afford. This includes not just the car’s price but also taxes, fees, and potential interest on a loan.
- Get Pre-Approved for a Loan: If you’re financing, get pre-approved by your bank or credit union. This shows the dealer you’re serious and gives you a benchmark interest rate. You’ll know if the dealer’s financing offer is competitive. Reputable sources like the Consumer Financial Protection Bureau (CFPB) offer great guidance on car loans.
- Determine Your Maximum Out-the-Door Price: This is the total amount you’re willing to pay, including all taxes and fees. Stick to this number!
3. Understand the True Cost (Out-the-Door Price)
The sticker price is just the beginning. Dealerships add various fees. Always ask for the “out-the-door” price, which is the final amount you’ll pay, including:
- Sales Tax
- Dealer Fees (Documentation Fee, Prep Fee, etc.)
- Registration and Title Fees
Negotiating the out-the-door price is more effective than just focusing on the sticker price. If a dealer knocks $1,000 off the sticker but adds $500 in fees, you haven’t saved much.
| Fee Type | Description | Negotiable? |
|---|---|---|
| Sticker Price | Advertised price before any additions or deductions. | Yes |
| Sales Tax | State and local tax. Varies by location. | No |
| Documentation Fee | Dealer’s administrative fee for processing paperwork. Often fixed. | Sometimes |
| Preparation Fee | Cost for dealer to get the car ready for sale (cleaning, minor checks). | Sometimes |
| Title & Registration | State-mandated fees for legal transfer and plates. | No |
| Other Add-ons | Extended warranties, VIN etching, tire protection, etc. (often high profit). | Yes |
Your Negotiation Strategy: Step-by-Step
Now that you’re armed with information, here’s how to approach the conversation with the dealership.
Step 1: Contact the Seller (Dealership)
Reach out to the dealership. You can do this via phone, email, or by visiting in person. If you’re emailing or calling, state your interest in the specific vehicle and ask for availability.
Key Point: Don’t immediately start negotiating. First, confirm the car is still available and ask for the out-the-door price. This helps you gauge their initial transparency.
Step 2: Express Interest and Ask Questions
Once you’ve confirmed availability, ask questions. This shows you’re serious and gives you more insight.
- “I saw the [Year, Make, Model] on CarGurus. Is it still available?”
- “Could you provide me with the out-the-door price for this vehicle?”
- “Has this vehicle had any accidents or major repairs?” (If you don’t have a report yet)
- “How long has this vehicle been on the lot?” (Dealers are often more willing to negotiate on cars that have been sitting)
Step 3: Present Your Research (Respectfully)
This is where your preparation pays off. If the quoted price seems high based on your CarGurus research, calmly present your findings.
- “I’ve been looking at similar [Year, Make, Model] vehicles in the area, and based on my research on CarGurus and other sources, I’ve seen them priced in the range of [Your Researched Price Range]. Given that, I was hoping we could discuss a price closer to [Your Target Price].”
- If the car has a minor imperfection or a less-than-perfect vehicle history report, you can use that: “I noticed on the vehicle history report that there was a minor fender bender in [Year]. While it seems repaired, that’s something I’d like to factor into the price.”
What NOT to do: Don’t be aggressive or accusatory. Frame your points as observations based on market data.
Step 4: Make Your Offer
Based on your budget, research, and the dealer’s responsiveness, make a firm offer. It should be a realistic number, likely lower than the asking price, but not so low that it’s insulting.
- “I’m prepared to offer [Your Offer Price] for the car today, assuming it’s in good condition and the out-the-door price is [Your Target Out-the-Door Price].”
Step 5: Handle Counter-Offers and Rebuttals
The dealer will likely counter-offer or push back. Listen carefully to their reasoning. They might cite repairs they’ve done or specific features.
- If they say “that’s our best price”: “I understand. However, considering comparable listings at [mention specific examples if possible] and the condition of the vehicle, I believe my offer of [Your Offer] is fair. Are there any other ways we can get closer?”
- If they’re adding fees: Reiterate that you’re focused on the out-the-door price. “I appreciate that, but my budget is based on the total cost. Can we get the total out-the-door price down to [Your Target Out-the-Door Price]?”
- Be prepared to walk away: This is your most powerful tool. If you can’t reach a price you’re comfortable with, politely thank them for their time and leave. Sometimes, this can prompt a better offer. You can always come back if you change your mind or if they call you with a better deal.
Step 6: Negotiate on Add-ons (Extended Warranties, etc.)
Once you’ve agreed on a price for the car, the dealer might try to sell you extras like extended warranties, gap insurance, or undercoating. These are often high-profit items for dealerships and can be heavily negotiated.
- Research these beforehand: Know what these products are worth. You can often buy extended warranties from third parties for less than what a dealer charges. For general advice on vehicle service contracts, the Federal Trade Commission (FTC) has useful information.
- “No, thank you” is a complete sentence: You are not obligated to buy these. If you’re not interested, politely decline. If you are, ask for their best price.
Things to Keep in Mind for a Smoother Negotiation
Here are some extra tips to make the process more successful and less stressful for you.
- Be Polite and Respectful: This is a business transaction, but treating the sales staff with respect goes a long way. A friendly demeanor can often lead to more cooperation.
- Focus on One Thing at a Time: Negotiate the car’s price first. Then, discuss financing. Finally, if you choose to, negotiate add-ons. Don’t let them muddy the waters by discussing everything at once.
- Never Negotiate on Monthly Payments: Dealers often try to focus on monthly payments, as this allows them to hide the total cost of the car and any added interest. Always negotiate the total price of the vehicle first.
- Don’t Show Your Full Hand Too Early: Be confident but not overly eager. If you reveal you must have this specific car, your negotiating power decreases.
- Bring a Friend (Optional): Having a friend or family member with you can be helpful. They can offer a second opinion, help you stay calm, and act as a sounding board.
- Trust Your Gut: If something feels off, or the dealer seems untrustworthy, it’s okay to walk away. There are always other cars and other dealerships.
When Negotiation Might Be Tougher
While negotiation is common, there are times when it’s more challenging:
- “Buy Here, Pay Here” Lots: These dealerships often have less room for negotiation as their pricing already reflects higher risk and their financing is directly with them.
- Very High Demand Cars: If a car is rare, very popular, or has a long waiting list, dealers have less incentive to negotiate.
- Online Retailers with Fixed Pricing: Some large online car retailers (not individual dealerships listed on CarGurus) operate on a no-haggle basis. CarGurus primarily lists traditional dealerships, so this is less common.
- Cars Priced Extremely Low: If a car is already listed significantly below market value, the dealer may have little room to negotiate further.
Common Pitfalls to Avoid
Navigating a negotiation can be tricky. Here are some common mistakes to steer clear of:
- Focusing Solely on Sticker Price: As mentioned, this ignores crucial fees which can add up.
- Badmouthing the Competition: While you should mention comparable prices, avoid disparaging other dealerships or their vehicles aggressively.
- Falling for Pressure Tactics: Salespeople are trained to create urgency. Don’t let them rush you into a decision you’re not comfortable with.
- Not Getting Everything in Writing: Any agreement you make should be documented clearly on paper before you sign anything.
- Forgetting About the Trade-In: If you have a trade-in, negotiate the new car price first before discussing your old car’s value. This prevents them from giving you a good price on the new car but lowballing your trade-in.
Frequently Asked Questions (FAQ)
Q1: Can I negotiate a price directly with CarGurus?
A: No, CarGurus is a platform that lists vehicles from various dealerships. You negotiate the price directly with the dealership selling the car.
Q2: What is the best way to start a negotiation on CarGurus?
A: Always start by doing your research. Know the car’s market value, check its CarGurus Deal Rating, and understand your budget. Then, contact the dealership with a well-researched offer.
Q3: Should I negotiate the sticker price or the out-the-door price?
A: It’s always best to negotiate the out-the-door price. This total cost includes all taxes and fees. Negotiating just the sticker price can lead to surprises when fees are added later.
Q4: What if the car I want is already listed as a “Great Deal” on CarGurus?
A: Even if it’s a great deal, there might still be a little room for negotiation, especially if you’re paying cash or have financing pre-approved. It doesn’t hurt to make a reasonable offer, but be prepared for less flexibility.
Q5: How important is a pre-purchase inspection (PPI) for negotiation?
A: A PPI is very important. If it uncovers issues the dealer didn’t disclose, you have strong leverage to negotiate the price down to account for necessary repairs.
Q6: What if I’m not comfortable negotiating in person?
A: You can do most of the negotiation over the phone or via email. This can give you more time to think and avoid high-pressure sales tactics. Just ensure all agreements are confirmed in writing before you visit the dealership.
Conclusion
Finding the right car on CarGurus is an exciting prospect, and knowing how to negotiate can help you get an even better deal. Remember, the key is preparation. By understanding market values, knowing your budget, and approaching the dealership with respect and a clear understanding of what you want, you can confidently navigate the negotiation process. Treat it as a conversation, be firm but fair, and always be willing to walk away if the deal isn’t right for you. Happy car hunting, and may you drive away with a great car at a great price!
