1. Do Your Research

Before heading to the dealership, it's essential to have a solid understanding of the car’s value. Use resources like Kelley Blue Book, Edmunds, and TrueCar to find the fair market value of the unsold car you’re interested in. Knowing the car’s true worth gives you leverage when negotiating.

• Pro Tip: Research both the MSRP and the dealer invoice price (the price the dealership paid for the car) to get a better idea of how low they might be willing to go.

2. Timing Is Key

The best time to negotiate for unsold cars is at the end of the month, quarter, or year when dealerships are eager to meet sales quotas. The end of the year is particularly good because dealers want to clear out last year’s models to make room for the upcoming models.

• Pro Tip: Major holidays like Black Friday, Memorial Day, or Labor Day often come with additional sales events, giving you even more negotiating power.

3. Start with the Invoice Price

When negotiating, start with the dealer's invoice price (the price the dealership paid for the car) rather than the MSRP (Manufacturer’s Suggested Retail Price). This tactic gives you a baseline for negotiation and shows the dealer that you’re knowledgeable about the car’s true value.

• Pro Tip: Aim for a final price that is slightly above the invoice price, as this still leaves the dealer with a reasonable profit while saving you money.

4. Know the Market for That Model

If the car you’re interested in is in high supply but low demand, you have more leverage in your negotiations. Keep an eye on how many similar unsold cars are listed at other dealerships, and mention this during your negotiations to show that you’re aware of your options.

• Pro Tip: Use websites like Cars.com or Autotrader to compare prices at multiple dealerships, which can give you extra negotiating power.

5. Stay Firm on Add-Ons and Extras

Dealers often try to add extras like extended warranties, paint protection, or accessories to increase the car’s final price. If you don’t want these extras, stay firm and decline them during negotiations. Alternatively, if the dealer won’t lower the price of the car, ask for these extras to be included at no additional cost.

• Pro Tip: Always read the fine print on dealership contracts to ensure no unnecessary add-ons are sneaked into the final price.

6. Ask for Additional Discounts or Incentives

Dealerships may offer manufacturer incentives or dealership-specific discounts that aren’t advertised. Ask if there are any rebates, financing incentives, or loyalty programs that you qualify for. Don’t be afraid to inquire about additional savings.

• Pro Tip: In some cases, dealerships offer special financing rates or rebates for first-time buyers, veterans, or college graduates.

7. Leverage Your Trade-In Smartly

If you have a trade-in, it can either help or hurt your negotiations. To avoid confusion, negotiate the price of the unsold car separately from your trade-in. Once you’ve settled on the price of the new car, you can then negotiate the value of your trade-in.

• Pro Tip: Get quotes from other dealerships or online tools like CarMax or KBB Instant Cash Offer to know the true value of your trade-in before going into negotiations.

8. Be Willing to Walk Away

One of the most effective negotiation tactics is being willing to walk away if you don’t get the deal you want. Dealerships are more likely to offer better prices or added incentives if they sense you’re serious about leaving. Walking away shows them you're not desperate to close the deal, giving you the upper hand.

• Pro Tip: Keep calm and patient during negotiations. If the dealer follows up after you leave, there’s a good chance they’ll offer a better price.

9. Take Advantage of Dealer Financing Offers

Dealerships often offer financing incentives, especially on unsold cars, to move inventory faster. If the dealership offers low-interest financing or a zero-interest loan, consider taking advantage of these offers. Be sure to calculate the overall cost and compare it to outside financing options to ensure you’re getting the best deal.

• Pro Tip: Negotiate the car’s price first before discussing financing options. Dealers sometimes use financing offers to mask a higher car price.

10. Seal the Deal with Cash (If Possible)

If you’re in a position to pay cash or make a substantial down payment, you may be able to negotiate a better deal. Cash payments reduce the dealer's financing costs, giving them more room to offer a discount. Mentioning that you’re paying in cash can add extra weight to your negotiations.

• Pro Tip: Even if you're paying cash, still negotiate as if you're financing to get the best deal first, then reveal your cash offer.

Frequently Asked Questions (FAQ)

1. What are unsold cars?
-Unsold cars are brand-new vehicles that didn’t sell in the previous model year. Dealerships often offer these cars at discounted prices to clear inventory and make room for newer models.

2. Can I negotiate the price of an unsold car?
-Yes! The price of an unsold car is highly negotiable, especially if the dealership is eager to clear out old inventory.

3. How much can I save by buying an unsold car?
-Savings vary depending on the model and demand, but you can typically save thousands of dollars off the MSRP by negotiating the price of an unsold car.

4. Are unsold cars a good investment?
-Yes, unsold cars are brand-new and come with full warranties, making them a great investment. Plus, the discounts make them an even better value.

5. When is the best time to buy an unsold car?
-The best time to buy an unsold car is at the end of the year, month, or quarter, when dealerships are looking to meet sales quotas and clear out older inventory.

Conclusion

Negotiating the best price on an unsold car requires preparation, timing, and confidence. By doing your research, knowing when to buy, and being willing to walk away, you can secure a fantastic deal on a brand-new vehicle. Use these expert tips to help you drive away with the car you want at a price you’re proud of.