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Do car dealers prefer cash or finance?

Paying cash vs financing Some dealerships love financing because they earn a commission from the lender, making an extra profit on the loan. Other dealers may prefer cash sales because they immediately close the deal. They might even offer a cash discount. Ask the dealer about their preferred paying methods early on.

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Negotiating car price is a skill anyone can learn – and it’s one that can potentially save you hundreds or even thousands of dollars whether you’re buying new, used, privately or from a dealer. Becoming a master negotiator comes down to combining a number of key ingredients: understanding the power you have as a buyer in a competitive market, doing your research, being aware of typical seller tricks to get you to pay more and staying flexible enough to maximise your options. It’s all about finding as many ways as possible to increase your leverage. How many times have you heard someone brag about how they just ‘swung an amazing deal’ on their latest vehicle? Nine times out ten, they’re dead wrong: they only think they negotiated cleverly and got a bargain. Walking into a car dealership or private sale without being properly prepared is like challenging a chess grandmaster to play for money. All the odds are in their favour. You may receive a useful lesson on how to play the game, but it may be an expensive one - and you could drive away without even realising you lost.

Before rushing out to haggle over your next vehicle, ask yourself some crucial questions. Do I know exactly what I want? What am I prepared to pay for it? When is the best month to buy a car? How much negotiating room is there on a new car, and how much can I expect a dealership to come down in price on a used car? What basic negotiating rules should I be aware of when discussing price with a car seller?

Having a handle on the answers to these and other relevant questions places more power in your hands when you’re ready to buy. The more knowledge you bring to the table, the more money you’ll keep in your own pocket while still getting the car you want. With that in mind, here are our nine top expert tips on how to negotiate a car price like a pro:

See all of Budget Direct’s car-buying guides

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