Car buyers pay an average $1,100 extra just to avoid haggling -- these negotiating tips could help you save big on your next set of wheels

This simulated car-buying exercise was part of five large-scale negotiation studies, which “found that 95% of individuals choose not to negotiate up to 51% of the time,” David Hunsaker, clinical associate professor of management at the IU Kelley School of Business Indianapolis (KSB) wrote in a blog post (2).

That means when it comes to negotiation, avoidance is the norm — not the exception. But there are ways to overcome the hesitation to haggle. Learning a few negotiating techniques can help ensure you don’t leave savings on the table next time you’re shopping for a car.

Why don’t Americans like to haggle?

The study found that people assess negotiating value by the percentage saved, not the absolute value amount. “On average, participants needed savings of 21% to 36% of an item’s price before considering negotiation worthwhile,” Hunsaker said (2). In other words, saving $1,000 on a $20,000 purchase may not seem worth the trouble.

But there are other reasons for this aversion to negotiating, too. Most items for sale in the U.S. have a fixed price, so consumers aren’t used to the concept of bartering (or it makes them uncomfortable). They’ve also become accustomed to waving a phone or credit card over a payment terminal, which doesn’t leave an opening to negotiate better terms.

At the same time, consumer confidence is dropping. “More Americans are feeling pessimistic and powerless, bombarded by news stories of layoffs, a K-shaped economy and the power of large corporations,” Moshe Cohen, master lecturer at Boston University, told Quartz. “When people feel hopeless or fear negative outcomes, they are less likely to try to negotiate for better opportunities” (3).

Still, as uncomfortable as it may be, negotiating can reap big benefits, especially as car prices rise.

As of January, new vehicle prices were near record highs at more than $49,000, according to Kelley Blue Book (4). And Edmunds found that one in five new car buyers committed to paying more than $1,000 on monthly loan payments in Q4 of 2025 (5). That being said, even a small discount could make a big difference, and smarter negotiation tactics and financing strategies could help buyers lessen their financial burden.

How to haggle on your next car

When it comes to negotiating, Hunsaker says preparation is key. “Most of the work happens before the conversation begins,” he wrote in the KSB blog. “Information is power. Know your options and be honest about whether you have strong alternatives. If you don’t, you’ll enter with less leverage” (2).

Start by determining your budget and what you’re willing (and able) to pay. Then do your research.

Consumer Reports provides research on which cars offer the best value, Edmunds offers reviews and information on pricing and trade-in values and Kelley Blue Book can help with pricing research. Many dealers will also provide a quote via email or over the phone.

“You'll want to make sure your price is as low as possible but still in the ballpark so dealers know you’re a serious buyer,” according to advice from Edmunds. “For new cars, look at the True Market Value (average price paid not including taxes and fees).” Edmunds suggests starting the negotiation process at least 2-3% below the TMV (6).

If you’re trading in your current vehicle, both Kelley Blue Book and Edmunds can provide a trade-in value estimate (though that’s often lower than what you’d get through a private sale).

When you’re ready to negotiate, it’s preferable to do it in-person at the dealership, especially if you’re open to different models or trims. But if you know exactly what you want, you might choose to ask for offers from various dealers online.