8 Prices You Should Always Haggle Over

Places where negotiating can save you cash

Donna Fuscaldo,

Updated July 01, 2024

AARP

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Published June 23, 2023

/ Updated July 01, 2024

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Whether to haggle is a question that looms large for consumers, especially when mobile apps make price comparisons simple and online discounts are readily available.

Although downloading a coupon code is easy, asking for a break in person may conjure up feelings of fear and dread. Nobody wants to be shot down or feel embarrassed, but not asking can leave money on the table.

“Haggling has always been the case for some kinds of goods, but increasingly there are more things to negotiate face-to-face,” says Linda Babcock, a professor of economics and head of the Social and Decision Sciences Department at Carnegie Mellon University. “Businesses that are not online are more open to haggling than they used to be.” With that in mind, here are eight categories in which it absolutely makes sense to open your mouth and ask for a deal.

1. New cars

When it comes to cars, negotiating a better price is expected and tends to pay off. As of May, the average discount off the manufacturer’s suggested retail price (MSRP) of a new car was $616. That is much lower than the $2,573 discount seen in May 2019, according to data from Edmunds. Still, in 2022, people were paying as much as $700 over the MSRP.

Pro tip: Think about more than the MSRP when negotiating, says Jaime Peters, an assistant dean of accounting, finance and economics and assistant professor of finance at Maryville University. “In addition to the price, you might think about other things that are important to you that the seller may be able to throw in.”

2. Houses

As interest rates rise, homes sit on the market longer, which means you can haggle for a better price. That’s particularly true the longer the house is on the market. Just like with cars, doing your due diligence can go a long way in saving you money. That means understanding the local market, how long houses are for sale and what the average price is for similar homes. Armed with that information, you can make an informed and hopefully lower offer.

Pro tip: Make sure you do comparison shopping before making an offer, Babcock says. You can do that online or with a trusted real estate agent. The last thing you want to do is insult the seller with an offer that’s too low.

3. Furniture

Furniture stores have taken a hit from the pandemic and the ease of buying online. That gives you a shopping advantage, particularly if the item you want has been at the store for a while, Babcock says. Retailers want to move older inventory to make room for new furniture and may be willing to give you a deal. At some stores, salespeople and managers have the discretion to reduce prices even if they are discounted. However, they won’t offer unless you ask.

Pro tip: “You have to have an attitude that while I might not be successful, what do I have to lose,” Babcock says. “Really nothing. They might say no, but if you don’t haggle, it’s a no for sure.”

4. Mattresses

Comfort and achieving a good night’s sleep are usually the main focuses when shopping for a mattress, but saving money should be as well. You can save cash to the tune of about $245 just for speaking up. Consumer Reports recently polled about 4,000 consumers and found only 23 percent tried to negotiate when shopping for a mattress. Of those who were brave enough to speak up, 60 percent were successful, saving a median of $245. And it wasn’t just at brick-and-mortar stores. Sixty-eight percent of people who haggled with a sales representative online got discounts. To score the best deals, consumers in that survey asked for discounts and were willing to walk away if they couldn’t get money off.

Pro tip: “When negotiating, you have to think about who has the power and is able to negotiate,” Babcock says. Typically cashiers are not empowered, particularly if you are in a big chain store. Negotiating tends to be more successful in smaller, independently owned retail locations.

5. Mobile phone and internet service

Loyalty has its rewards when it comes to your mobile phone bill and internet. The wireless carriers and internet providers don’t want to lose you and will often give you deals and discounts to retain your business. But you have to ask.

Go in armed with knowledge about how much you pay and what you would like to pay before calling your provider. You may find you are shelling out serious cash for bells and whistles you don’t need or use. Let the provider know you are thinking about leaving. If you aren’t happy with the company’s response, ask to speak to someone in the retention department. Its job is to keep you as a customer, and staffers may be willing to give you a discount to achieve that or throw in perks you’ll actually use.

If you aren’t getting anywhere, hang up and try again later. Every customer service rep is different. A bad experience with one may be a great time with another.

Pro tip: “It’s important to plan for what you can negotiate. Know what your options are, what you care about,” Peters says.

6. Home improvements

“You get what you pay for” couldn’t be truer when it comes to home improvements, which is why homeowners are encouraged to get several estimates before deciding on a contractor. Once you find one you like, there is room to haggle for a better deal, especially if you get the work done during a down period for the industry. Your contractor may be willing to charge a lower price because business is slow. Make sure you are reasonable when asking for a discount. You don’t want to insult the person with an unrealistic counter price for the work.

Pro tip: “People often think negotiations are a push-pull competitive exercise. You want more, I want less; the more I win, the more you lose,” Peters says. “While that might be the case, more often than not, the parties have a lot of different interests. We should view this as a problem-solving experience in which both parties want to reach an agreement that can be mutually beneficial.”

Sure, the contractor may give you 10 or 20 percent off, but if that means more work will come her or his way in the future, that discount is worthwhile. “A lot of negotiations aren’t simply one shot,” Peters says.

7. Retail items

Haggling for a deal at a national chain will be an uphill battle, but at smaller, independently owned stores, it could be a winning strategy. Store managers, owners and even salespeople have more freedom to negotiate with you. They don’t have a corporate office to answer to and are more motivated to close a sale. That strategy can be effective if the item you have coveted has been on the shelf for a while. Before you start the negotiation, make sure you know the price of comparable items.

Pro tip: “Sometimes asking when the price will be marked down or when they are having a sale can be really successful,” Babcock says. “The older the inventory, the more open they will be.”

8. Car Insurance

Most states require car insurance but when it comes to getting the best rate, Peters says this one is worth haggling over if you are working with an insurance carrier that uses agents. “Insurance is a massively competitive business, typically based on actuarial tables and demographics,” Peters says. “Even if you are happy with your carrier and agent it is prudent to shop your insurance coverage around every two or three years at the least.”

Pro tip: Peters says to get a competitive quote from an alternative provider and present that quote to your current agent. “It can be surprising how quickly they find new ways to reduce the cost. These savings can save several hundred dollars a year,” she says.

If negotiating isn’t your thing …

Haggling may not be up your alley, but the more you practice, the better you’ll get at it. Babcock has her students try to negotiate every week, starting out with something small and building up. “Go to a flea market or garage sale. Negotiations are completely expected and usually quite successful,” she says. “You’ll get some experience and confidence and can go up from there.”

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Donna Fuscaldo is a contributing writer and editor focusing on personal finance and health. She has spent over two decades writing and covering news for several national publications including The Wall Street Journal, Forbes, Investopedia and HerMoney.