Negotiation at the vehicle dealership is an act of discussion and compromise. It begins with plenty of research. These suggestions will help you understand what to do before, during, and after your negotiations with the dealer.

Before You Visit the Dealership

• Consult third-party sources like Kelley Blue Book to get an estimate and become comfortable with your asking price
• Become familiar with current interest rates. This will help you estimate your monthly payments
• Know which payment option makes sense for you: cash, purchase financing or lease
• If you are purchasing a used vehicle, find a mechanic to assess it before you purchase it through our Genuine Parts & Service website
• Know your vehicle's resale value before you discuss trade-in negotiations
• If the vehicle you are trading in needs repairs, get estimates so you can figure out your vehicle's actual value

At the Dealership

Keep in mind that you really have three points to negotiate: purchase price, trade-in value, and financing terms.

• Keep each negotiation separate and proceed in the order listed above. It's better to get your agreed upon terms in writing before moving onto the next stage in the negotiation process
• Finalize the vehicle's purchase price. Steer clear of discussions about monthly payments or payment choices (cash, purchase financing or lease) until the price is determined. Because terms and interest rates are flexible, you may end up paying more for a vehicle to arrive at a desired monthly payment
• Save discussions about financing for the dealership's finance manager
• Wait until all negotiations are finalized (purchase price, trade-in, and financing) before deciding on extras like insurance and an extended service plan

After the Negotiation

• Have all your terms and figures put into writing
• Review the terms and figures carefully

Tour the service area and meet the people you will eventually see for maintenance or service/warranty work