Quick Answer: Can You Haggle Car Finance?

If you’re financing through the dealer, there’s a chance you can negotiate a lower price for the car because their profit will come from the whole deal, including the interest rate on the loan.

It’s a balancing act, but many buyers prefer to keep it simple, even if it means a higher transaction price.

Do car dealers prefer cash or financing?

But that’s not how car buying works. Dealers prefer buyers who finance because they can make a profit on the loan – therefore, you should never tell them you’re paying cash. You should aim to get pricing from at least 10 dealerships. Since each dealer is selling a commodity, you want to get them in a bidding war.

Can you negotiate when financing a car?

Pay for the car in cash or get your own financing if you can, but don’t reveal how you’re going to pay until after you’ve negotiated down the total car price. (Dealers may be less likely to negotiate if they know they can’t profit from your financing.)

Is financing through a dealership a bad idea?

Some types of dealerships finance auto loans “in-house” to borrowers with no credit or poor credit. The interest rate on loans from these dealerships can be much higher than loans from a bank, credit union, or other type of lender. Consider whether the cost of the loan outweighs the benefit of buying the vehicle.

How much can you haggle on a new car?

Focus any negotiation on that dealer cost. For an average car, 2% above the dealer’s invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.