Many end up with cars they can’t afford, leading to forced sales, or worse, repossession. Getting the best possible deal now depends on shifting the way people approach car shopping: starting with a realistic budget, avoiding in-person negotiations, and staying flexible throughout the process.
According to Tom McParland, a professional car buyer and founder of AutomatchConsulting.com, too many consumers approach dealerships without preparation. The result: wasted time, unnecessary fees, and long-term financial strain. Instead, McParland recommends a strategic process based on online tools, smart budgeting, and clear comparisons, giving buyers the leverage they need in a tough market.
Understanding how dealerships work, how financing affects the total cost, and when to walk away can make the difference between a fair deal and an expensive mistake. McParland’s approach is based on experience gained from brokering thousands of deals, from affordable compacts to high-end models, since 2012.
Calculate Your Budget Before Looking at Cars
Buyers should begin by checking their credit score, which will determine the kind of interest rate they’re eligible for. Then, define a comfortable monthly payment, and use that number to work backward through a loan calculator. This method includes estimating interest rate, down payment, and loan term, with 60 months as the ideal and 72 months as the maximum recommended.
In one example provided by McParland, a buyer aiming for a $500 monthly payment with a $5,000 down payment, a 7% APR, a 60-month loan term, and around $800 in dealer/DMV fees, could afford a car with an out-the-door price close to $30,000. That restricts the search to models in the mid-to-upper $20,000 range, such as the Honda Civic, Subaru Crosstrek, or Nissan Kicks.
If budget calculations reveal that new cars are out of reach, buyers should consider the used market. But whether buying new or used, McParland advises that buyers test drive their selected models, while avoiding any in-person negotiation until they have clarity on pricing and budget.
Use Online Listings and Avoid the Showroom Trap
Most buyers still negotiate in person, a practice McParland describes as time-consuming and often ineffective. Instead, he advises using online inventory tools from manufacturers or third-party websites like Autotrader, Cars.com, and CarGurus. These platforms help buyers locate their desired vehicle in their area without visiting the dealership.
After finding potential vehicles, the next step is to contact dealers through email or phone and request an itemized out-the-door price. This detailed quote is essential, as it reflects the true total, far beyond the advertised discount. McParland emphasizes that buyers must look beyond sticker savings and focus on full pricing details.
Being flexible on vehicle color and features is another tactic that increases bargaining power. Buyers insisting on a specific trim or color often find themselves with fewer options and less leverage. Expanding the search radius can also lead to better prices, even when factoring in transportation or travel costs. “Even with a long travel or transport costs, it can still be worth it to get the right price from further away,” McParland notes, as reported by Jalopink.
Compare Quotes and Avoid Hidden Costs
Once quotes are gathered, buyers should compare total prices, not just discounts. Some dealers offer what appears to be an aggressive discount but quietly include higher processing fees or accessory charges, which reduce the value of the deal.
It’s also important to check whether any rebates or incentives apply. These may come from the automaker and can include cash offers, special APR rates, or savings tied to dealer financing. In some cases, buyers must choose between a lower upfront price or long-term savings through reduced interest. Calculating both options helps determine which provides greater value.
Finally, buyers should stay alert in the finance office, where they may be offered extended warranties or service plans. According to McParland, these add-ons are rarely worth the cost, providing limited value in exchange for higher monthly payments or unnecessary coverage. While it may be tempting to haggle over every fee, McParland suggests focusing on how a deal compares to others overall.
