How to work dealers on price?

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Bought a car yesterday. Just walked in and told them what I was looking for and that I wanted to trade in a vehicle. I also told them that I will do the deal today if they offer the right price on the new car and my trade. I mentioned that I only had 2 hours from start to finish or I'd need to forget the whole deal.
I test drove a car I'd wanted...was very satisfied....then told the sales guy it's time to deal. He realized that I was serious and had a superior credit rating as well. About the only things he tried to push on me was an extended warranty and a bunch of other extras. Each time I sad no...he'd go talk to the "manager" and then cut the prices basically by 1/3rd. I still said no. Eventually, after cutting 50% from his original price of the extended and the other stuff...he gave up. I told him I wanted a particular color of the new car as well. They couldn't find one (and I acted like that was a deal killer for me...it wasn't though). Then they offered me five years of free oil changes and some other discounts if I'd buy the one on the lot. I agreed, and reminded them I was in a hurry. I got in and out within two hours and got what I'd wanted at the price I was happy with. I still had time to go to work per a normal day.
 
Originally Posted By: Astro14
Be willing to walk away.

Seriously.

If you've got a bank, like USAA, they will negotiate a decent price for you, but the dealer will try to pad it with stuff (paint protection, extended warranty) that you may not want or need.

Dealers pay holdback on the car every month (a percentage of value paid back to the manufacturer), so the end of the month, they're under a bit more pressure to move the car, before they owe a few hundred $$ payment on it. So, go shopping at the end of the month.


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This right here. Best thing is not being afraid to get up and leave. Dealers know they have what you want. So you are automatically the weaker one to start. Make them realize they need your money to get that power back.

Does working two dealers against each other really work though? I usually just go in with a number and try to not to deviate from it.

But you also have things like True Car and KBB that can give you a number to print out and show the dealer now so that takes a lot of the hassle out of things too.

Also didn't realize the end of the month thing. That's very interesting, but makes a lot of sense.
 
Lots of good advice above.

Know what you should pay (buy Consumer Reports).
Only talk about the drive it away price - I have no time for documentation fees, ADP (added dealer profit - there is such a thing) and similar charges.
You don't want any of their special waxes, interior sprays, undercoatings, specially marked windows, etc. (See ADP above).
Be ready to walk. I've had them run out to catch me before I could drive away.
Ask for written certification that there has been no body damage (I was once sold a "new" car that had a repainted fender - they did a really good job but still).
If you're keeping the car for many years a year end model is probably okay. If you plan on keeping it for only a few years I think you're better off with a current model.
Buy in the middle or near the end of a model run. Never buy the first year of a model. They eventually fix most of the bugs.
Someone else will get a better deal than you did but you'll do okay.
 
Originally Posted By: Astro14
Be willing to walk away.

Seriously.

If you've got a bank, like USAA, they will negotiate a decent price for you, but the dealer will try to pad it with stuff (paint protection, extended warranty) that you may not want or need.

Dealers pay holdback on the car every month (a percentage of value paid back to the manufacturer), so the end of the month, they're under a bit more pressure to move the car, before they owe a few hundred $$ payment on it. So, go shopping at the end of the month.
Holdback is what the manufacturer pays the dealer. The dealer can sell the car for whatever they want because they will always make money on the holdback. The greater the profit on the deal, the higher the holdback. The dealer pays only an interest/insurance payment at the end of the month.
 
Originally Posted By: AIRJAC3

Does working two dealers against each other really work though? I usually just go in with a number and try to not to deviate from it.

But you also have things like True Car and KBB that can give you a number to print out and show the dealer now so that takes a lot of the hassle out of things too.


To answer your question: yes. I've used the ousame strategy to buy my last 3 cars and it works great. Start with TrueCar and several local dealers will contact you. Go to the closest one and pick the car/options you want and use the TrueCar price as a starting point. Haggle dealer down as low as you possibly can, then tell them you want to sleep on it. Email a few other dealers with the specs on the car and ask them to beat the price you were offered. All you do then is coordinate a fight among them until all but one quits.
 
I'm one of the strange folks that LIKES negotiating car deals. I negotiate deals for me, the wife, my parents, my wife's parents, other family members, etc, because I always get the best deal.

1) Buy on the last day of the month. Your one sale could mean the difference between the sales manager meeting his monthly sales goal or not meeting that monthly sales goal.

2) The 2017 model cars are coming out now. If you can wait a few months, you can get a much better deal on the 2016 models that they want sold and off their lot.

3) Find the internet sales manager, and negotiate with him/her via email in the comfort of your home. It is much easier and less stressful to negotiate with your computer screen, than a highly trained sales professional that is trained in the art of the deal and physiological clues as to whether they can squeeze you for more money or not.

4) Email EVERY internet sales manager for that car brand within 300-400 miles. I have absolutely NO PROBLEM whatsoever driving 300 miles to pick up a car if it is going to save me $1000. I bet you would to. That's just a nice Saturday drive. Heck, many dealers will even drive the car to you and you can sign the paperwork in your living room.

5) Look at websites such as truecar.com, edmunds.com, and kbb.com and a few others I am probably forgetting. You can get a general idea what invoice pricing is. Just realize that car dealers dont buy a car for "invoice price". There are a LOT of other factors that go into what a car dealer actually pays for the car.

6) NEVER, EVER, and I mean, EVER buy a car based on monthly payment. That is how suckers buy a car. The dealers slide you a piece of paper and ask you to put down what you can afford each month. Slide the paper right back across the table and tell them to stop playing games. ALWAYS buy a car based on total out the door cost, and not monthly payment. This is a test that dealers use to find out how informed/stupid the buyer is. Only IDIOTS buy a car on monthly payment, and the dealers know this. They would be glad to sell you a new $75K BMW at $249 a month. With a 26.9% interest rate. With 360 monthly payments.

7) If the car brand is offering 0%, 0.9%, or 1.9% interest financing, it is probably better to go with the dealership financing. If they are not offering anything like that, then your local credit union will most likely offer batter rates. I personally use my bank as they give me INSTANT access to credit. I just print out a form and bring it with me to the dealer. Takes less than 3 minutes to apply for credit via my bank and I have the form printed out and ready to go in under 10 minutes. So easy a caveman could do it.
 
Originally Posted By: Blueskies123
Originally Posted By: vintageant
Use a car concierge to do all the negotiating for you and take the hassle out of new or used car buying or leasing.

In South Florida we've used http://www.carmanchris.com/ with complete success and satisfaction.

Look for one near you!


I know they make it easier to buy a car but how did they really do on the price. What was the MSRP and what did you pay?


He paid more than you or I pay. Yeah they make it easy, but at a cost. They dont work for free.
 
Really appreciate all of the advice given! I think I will hold out for a few more months and hunt for better deals using the suggestions in this post. I'm thinking that because this is the last model year of the Caravan I should be able to find a pretty good deal year end. Tons of caravans are built so I'm sure we can find one with the options we want, maybe even a left over Sedona if the wife really wants to go that route. She will be the primary driver anyways.
 
Oh, and dont forget to look at gently used. On cars that lose a lot of residual value very quickly, such as Chrysler and Kia cars, a two year old car could be almost half the cost of a new one. My Town & Country is the top of the line model, the $50K one with leather, navigation, and daily massages by a swimsuit model. I bought it gently used and like new with like 19K miles on it and with was in the $15K range when I bought it, if memory serves me right. I paid 1/3rd that of a new car. Wife and I make a generous 6 figure income and could have easily afforded a new one, but I'm smart with money and let the first owner take the $35,000 hit. I'll drive it into the ground.
 
Also, someone mentioned looking at used minivans. We did look at a few used ones they had on the lot. The main issue I have with used minivans in the Kia and Dodge flavor is they are all previous rentals that had around 30-40K miles on them. That's a lot of potential hard miles with questionable maintenance. That is also outside the basic warranty.

We are planning on keeping this van for 10+ years so I don't think the $4-5K in savings is worth it to me. I'd rather buy something new and have the piece of mind knowing it's history from day one.
 
Most everyone who I know who got a good deal used EMAIL exclusively to get a good out-the-door price. Email a large number of dealers. Maybe one of them has an incentive (that the others do not have) to get rid of your car. I've heard a few stories of dealers who are desperate to get rid of one car off their lot, but you need to spread your net widely.

Also, once you are physically on their lot you are on their turf and they can work you in very sophisticated ways (psychologically). If you negotiate on the lot, they will make you FEEL like you are getting a deal but it is all a trick.

Also, NEVER tell they how you are going to finance or trade. If they can fold in your trade or finance with the car, they OWN you. You must, MUST keep those three things totally separate (1. the car price 2. The financing and 3. the trade). Often if they negotiate these three together they will give you a great deal of one of the three and then make up for it (and then some) on the other two.

So, if you let it slip that you want $X for the trade, they will give it to you (or better) and then fleece you somewhere else (often on the financing).

Most people leave the lot FEELING they got a deal. This is a trick. Most car buyers do not get a deal. But the car salespeople have done a poor job if they have not given you the impression that you got a great deal. Buyers are led by professional salespeople with techniques that have been honed for a long time. You are a minnow among sharks. However, buyers often are full of hubris and think they can outsmart the sales experts. It almost never happens.
 
Get pre approved and guaranteed pricing. I use USAA and they have renegotiated prices. Just go in, if they have what you want in stock, get the paperwork in order, walk in and ask the sales manager for a contract or do it online if you can get the inventory number. I picked up my vehicles completely salesman and finance manager free. No Talk about payments or what I can afford, None of their business. Let them make their money off of impulse buyers.
 
The whole end of the month "fallacy" is just perpetuated by the public I sell cars for Lexus and you get the same deal on the first as the 31st. The only way we work all day is if we are really close ie 10 away from corporate numbers. if the vehicleis really ppopular the dealership will tell you to take a hike.
 
As bubbatime said, look at used too.

In March my grandmother bought a certified used 2014 Dodge Grand Caravan SXT, 27k miles, mostly loaded, doesn't have TVs or leather or navigation (she didn't want them). She got it for $16,500. 7 year 100k mile powertrain warranty. Was much nicer to get one for $10k off that was in immaculate shape.
 
Once you know what you want, email every dealer within a hundred or so miles and ask them for a price.
Some dealers will play and some won't. Some dealers are much more aggressive in their discounting than are others.
The advice to wait until later in the year is probably good.
The 2016 leftovers won't be getting any fresher once the 2017s have been around for a couple of months and there is no real downside since really awful color combinations and strippo models no longer exist outside of pickups and vans intended for the fleet market, and even those at least have air and good luck finding a stick in anything.
Branch your search out a bit and you'll save yourself some money.
 
I won't name the name, but there is a dealer that carries both Dodge and Kia names in Lakeville. Can even give you a salesperson name if you PM me. Recently bought a truck from them, and the price was as shown on the website and was extremely favorable. Nobody else wanted to go that low, and only a $75 doc fee to boot...

Otherwise, make sure you know the invoice pricing and work the deal from there, not the MSRP.

Also the best advice is to negotiate the out the door price first, then bring a trade up if that is part of the deal after that price is settled.
 
It depends...what I'd do is call around. Just tell them that you're ready to buy, this is the price you were given, can you beat that? Most will certainly talk...don't let them bull [censored] you, because they'll try...they'll try to get you in there and you'll end up wasting your time. Have them give you a number right over the phone.

Don't waste your time emailing them, a lot of places won't get back to you...they won't take you serious...even if they did it's going to be time consuming.

As far as end of year stuff goes, it depends on the vehicle. If it's not a hot moving vehicle they'll want to get rid of the remaining units, you can sometimes find deals that way (end of year leftovers). They'll want them gone so they can move the new ones with their fancy rebates and factory incentives.

As others have stated, walk away if the deal isn't favorable...you don't have to swing at every pitch...you can wait for the right one.

One other thing, make SURE you know EXACTLY what their [censored] fees are (documentation, etc). Because what will happen is the money you thought you were saving can be totally wiped out when they surprise you with $700 plus worth of "fees".
 
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