How do I negotiate when buying a used car?
I'm buying my first car from a dealership and I have no idea how to negotiate. Do dealers expect you to haggle? How much below the sticker price should I offer? Should I mention my trade-in at the beginning or end? What's a fair profit for the dealer? I don't want to get ripped off but I also don't want to be rude.
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I'd talk to a few different banks and credit unions, not just the first one. Rates and fees vary a lot. Credit unions especially tend to have better rates than big banks because they're nonprofit and member-owned. Always shop around.
4 Answers
I'd talk to a few different banks and credit unions, not just the first one. Rates and fees vary a lot. Credit unions especially tend to have better rates than big banks because they're nonprofit and member-owned. Always shop around.
My parents told me the same thing and they were right. But everyone's situation is different. Run the numbers for your specific situation before making a decision. There are good calculators online that account for all the variables.
The biggest financial mistake I see people make is not having an emergency fund. Before investing, before paying extra on debt, save 3-6 months of expenses in a savings account. This protects you from going into debt when unexpected things happen.
Taxes are the part everyone forgets about. Whatever you're planning, factor in what you'll owe Uncle Sam. Talk to an accountant — a good one saves you more than they charge. H&R Block is fine for simple stuff but get a real CPA if it's complicated.
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