How to haggle when buying a car

Before you discuss price

The first step is to do your research. Understand what the car you're considering usually sells for - and adjust for its condition and mileage.

Remember that dealer prices tend to be higher than private sale prices. If you're buying from a dealer, look up online what discounts might be available.

Make sure you've checked the car and its history and gone for a test drive. Use what you've learned as a negotiating tool - pointing out any defects you'll have to repair.

Make a first offer

Make an offer for the car - don't go too low as you want to be taken seriously.

Allow yourself to be bargained up to a price you're still happy with.

Think about the timing - dealers, in particular, may be more willing to deal if a new model is coming out or if it's getting towards their month or quarter end (they have targets to meet).

During the negotiations

Don't be put off by silences - these can be a trick to embarrass you into agreeing to something. Make it clear you're ready to do a deal so you are taken seriously.

Don't get angry or give up if it's not going your way. You can always change the subject and come back to price later.

If you're buying from a dealer, don't concentrate on just the price. See how much their finance costs if a deal is contingent on that (for instance, you may not get a deal if you use any 0% finance offer).

If you're trading in your car, remember to haggle over that, too - it's the difference in the two costs that's important.

Closing the deal

If the negotiations do drag on, make a reasonable, final offer. If you can't get the deal you want, don't be afraid to walk away (there's nothing to stop you coming back later with a higher offer if you think it's worth it - but don't make budget-busting decisions in the heat of the moment).

If they won't budge any more on price, but you're close to a deal, look for other options - road tax, a new MOT or even a full tank of petrol can close the gap on cheaper cars.