How do I negotiate with a preapproved auto loan?
The car I am interested in is $10,699 and I have a $6000 down payment. I got pre approved for $15,000 but I don’t need the whole loan amount and I would like to negotiate the price down but I am not sure how to do this. I’ve read not to tell the dealer my down payment amount in order to negotiate but I’m not sure how I would do that. Any advice??
- DON WLv 73 weeks agoFavorite Answer
They will ask you about financing. Say that you are pre-approved. They will ask you about the amount and your interest rate. Do not answer. If they ask about down payments, again tell them your financing is all set. Again, do NOT talk to them about your approval amount or your down payment--that's your business, not theirs.
Steer the conversation instead to the amount you will have to pay. Do not get side-tracked into monthly payments--again tell them that your financing is all set and you are only interested in the lowest price for the car. Do your research and see what the car is worth (the Edmunds website may be useful to you). Assuming that the car really sells for about $10,699, tell them that you are willing to purchase the car immediately for $10,000, with that including all fees. See what they say. If they say they can't come down from $10,699, tell them you will pay that if it includes sales tax and all fees.
If they say they have to check with the manager, tell them that you are only willing to stay for five minutes while they do so. After five minutes, get up to leave.
If they say yes, tell them you'll get the check from the bank within the next two days, and will deliver it to them. Get the price in writing and take it to the bank.
If they play games with you, start to walk away, telling them if they want to sell you the car for $10,000, they can call you (give them your phone number), then keep walking. If they play the game of drawing a square with four boxes, again they are playing a game that you should walk away from.
- ALv 73 weeks ago
First look up the value of the car you want on Kelly Blue book, you will get 3 values, the retail, the trade in and the loan value. When negotiating the price do not mention anything about your down payment or your financing. It should not matter and is none of their business who the check comes from,
so test drive the car, if the KBB has a trade in value of 8500, make an offer of 9250, they get to make some money-they would have spent money inspecting it, cleaning it, maybe doing some small things, oil change, etc and advertising it. They are going to counter by try to get it for 9500-9800. You can always walk away and find a car at another dealer, it is a good idea to pick out several cars that meet your needs and just go after the #1 car first
- ScottLv 73 weeks ago
Most legitimate lenders won't approve a loan less than $10,000, because below that it isn't worth their time. If you want to put $6000 down on a $10000 car, you're going to have a hard time borrowing the additional $4000.