The only thing I would add to this is many places are now selling financing, not cars. No matter how fair or great of an offer you believe you are making, if they are selling "buy here - pay here" or similar, they are not in the car selling business, but the loan selling business.
There is a different set of rules in play at such a business.
Originally Posted By: cashmoney
Negotiating a price on a used car is super easy if first you take the time to understand the car selling business.
Rule number 1 is don't ever negotiate price on a car transaction sitting at the dealer. Negotiating price while at the dealer marks you as the average sucker that they can screw on the deal. Instead once you have identified the specific car you want you need to leave the dealer and go home. Tell the salesperson you will think it over and give him a call to discuss price. All price negotiations must be done over the phone or via email. Note that the dealer hates that because they have no leverage or power over you if you are not sitting there investing your time at the dealer. They will do everything they can to keep you sitting there at the dealer.
Rule number 2 when you call is ask for a full drive out price in writing on the vehicle. That means getting the full total cost of the car plus tax, tag, and title ("drive out" price). Do not negotiate any line items or any other costs. Negotiating individual line items is another sign that the buyer is a sucker. Most line items on an dealer car invoice are pure [censored] and don't matter. Negotiate the bottom line cost only and get it in writing via email. Reply to them with your fair counter offer by phone or in writing and wait their reply. Be patient, act like you have all the time in the world and let them know you may shop and negotiate other dealers at same time.
It is important to understand a car dealer's business. 1) Every used car sitting on the lot is financed ("on plan" in industry lingo) and interest on each has to be paid every month. 2) Every used car on the lot is worth less each month (depreciation) 3) The longer the car sits the more it costs the dealer and the more likely they are to want to sell at a discount. 4) after a car has sat on the lot for 90 days most big dealers send the car to the auction or to a secondary down scale lot where it will be sold to marginal credit buyers, etc.
Offer a fair price over the phone or via email and let them know you have all the time in the world. It is critical to understand that they are the ones that want to sell as quickly as possible although they are masters at hiding that fact.
You also have to understand supply and demand for the car you want. If the dealer has a desirable super hot demand car in mint condition they are not going to discount it all because it will sell fast at asking price. They know exactly what cars sell fast and would be idiots to sell one at a discount. If the car is less desirable for any reason (higher miles, not mint, bad color, previous damage, low demand model,etc) than of course they must discount to get it off the lot unless of course they get a sucker to buy it.
Also if you come to an agreement via email or phone let them know that if the total drive out number changes by even a dollar that you will immediate walk out and not return under any circumstances.
It is important to be polite, courteous and 100% professional while negotiating - this is a simple business transaction. It is not personal. The dealer needs to make a profit on the sale and you need to make the purchase at the minimum expense. Once they understand that you know the business and are not the usual bozo, they usually stop most but not all the typical slimy sales weasel behavior.
There is a different set of rules in play at such a business.
Originally Posted By: cashmoney
Negotiating a price on a used car is super easy if first you take the time to understand the car selling business.
Rule number 1 is don't ever negotiate price on a car transaction sitting at the dealer. Negotiating price while at the dealer marks you as the average sucker that they can screw on the deal. Instead once you have identified the specific car you want you need to leave the dealer and go home. Tell the salesperson you will think it over and give him a call to discuss price. All price negotiations must be done over the phone or via email. Note that the dealer hates that because they have no leverage or power over you if you are not sitting there investing your time at the dealer. They will do everything they can to keep you sitting there at the dealer.
Rule number 2 when you call is ask for a full drive out price in writing on the vehicle. That means getting the full total cost of the car plus tax, tag, and title ("drive out" price). Do not negotiate any line items or any other costs. Negotiating individual line items is another sign that the buyer is a sucker. Most line items on an dealer car invoice are pure [censored] and don't matter. Negotiate the bottom line cost only and get it in writing via email. Reply to them with your fair counter offer by phone or in writing and wait their reply. Be patient, act like you have all the time in the world and let them know you may shop and negotiate other dealers at same time.
It is important to understand a car dealer's business. 1) Every used car sitting on the lot is financed ("on plan" in industry lingo) and interest on each has to be paid every month. 2) Every used car on the lot is worth less each month (depreciation) 3) The longer the car sits the more it costs the dealer and the more likely they are to want to sell at a discount. 4) after a car has sat on the lot for 90 days most big dealers send the car to the auction or to a secondary down scale lot where it will be sold to marginal credit buyers, etc.
Offer a fair price over the phone or via email and let them know you have all the time in the world. It is critical to understand that they are the ones that want to sell as quickly as possible although they are masters at hiding that fact.
You also have to understand supply and demand for the car you want. If the dealer has a desirable super hot demand car in mint condition they are not going to discount it all because it will sell fast at asking price. They know exactly what cars sell fast and would be idiots to sell one at a discount. If the car is less desirable for any reason (higher miles, not mint, bad color, previous damage, low demand model,etc) than of course they must discount to get it off the lot unless of course they get a sucker to buy it.
Also if you come to an agreement via email or phone let them know that if the total drive out number changes by even a dollar that you will immediate walk out and not return under any circumstances.
It is important to be polite, courteous and 100% professional while negotiating - this is a simple business transaction. It is not personal. The dealer needs to make a profit on the sale and you need to make the purchase at the minimum expense. Once they understand that you know the business and are not the usual bozo, they usually stop most but not all the typical slimy sales weasel behavior.
