Question for the Car Salesmen or Good Negotiators - Please H

brph26

What are the best ways to negotiate with a car dealership on lowering the base price of a used car? I found a perfect car online. They are asking 13,900 and I'd like to pay around 11-12,000. I know the trade-in price on this car would be around 10-11,000, but I sort of think that they probably got it auction or something like that, so they probably paid less then 10,000, but I'm not really sure until I go there and ask I suppose. I can afford the 13,900 I just don't really want to, and want my payments lower. How can I get the price I want?

Side note - I have a check from my bank, and can pay on the spot, they won't have to do any financing, etc. for us. I am not planning on telling them right away about the check. Basically, I write out the check for whatever I want up to a certain amount.

To the car salesmen: What takes place in order for you to come lower on price? Something the buyer says, they way they act, what?

I am just horrible at haggling, and my hubby is even worse. lol

Please, help me! :flowerforyou: I am hoping to do my car shopping tomorrow.

brph26

bumping this

anyone out there that can help me?

rosebarnalice

The true trick to negotiation is know what your walk-away point is before you start the negotiation.

Will you walk away from the deal if the salesman says 13,900 firm? 13,000? 12,500? 12,000? 11,500? You have to know that NOW because if you waffle from your own walkaway, then s/he's got you.


So, let's say your walk-away is $12K:

What I'd do is rather than hiding the fact that you've got your bank check ready, I'd lead with " "I want to buy a car TODAY and I've got a bank check in-hand, but I'm not willing to pay more than $11,000. Can we work a deal?"

Then, if s/he says, "nope the price is firm," then you smile nicely, say, "no, I really wanted to pay 11,000" and you WALK AWAY.

If s/he says, "I can probably come down to 13K", then you smile nicely, say, "no, I really wanted to pay 11,000" and you WALK AWAY.

If s/he says 12,500, then you say, "well, I could PROBABLY come up to 12." Then either you've got a deal at 12, OR s/he says, "$12,500 is as low as I can go", and then you smile nicely AND WALK AWAY.

And as you are WALKING AWAY sometimes what happens is that s/he will suddenly decide that s/he can find it in her heart to knock off the extra and come down to your price.

But the key to all of this is to know in your heart of hearts before you start playing games what YOUR walkaway point is. Rest assured the salesperson already knows what HIS/HER walkaway point is (probably cost plus 10-15%)

I'd also go in near the end of the month. Sometimes salespeople have quotas to meet, and if you've got someone trying to meet a monthly quota, they'll try a little harder to make the deal.

otr12

They make money when you finance so saying you have cash in hand has the opposite effect that you would assume. You would be better off financing and then immediately paying off the loan.

Also, go in on the last day of the month. They get bonuses based on units sold and that last day is a big push to sell as many cars as possible regardless of profit.

mrssavvysteve

The true trick to negotiation is know what your walk-away point is before you start the negotiation.

Will you walk away from the deal if the salesman says 13,900 firm? 13,000? 12,500? 12,000? 11,500? You have to know that NOW because if you waffle from your own walkaway, then s/he's got you.


So, let's say your walk-away is $12K:

What I'd do is rather than hiding the fact that you've got your bank check ready, I'd lead with " "I want to buy a car TODAY and I've got a bank check in-hand, but I'm not willing to pay more than $11,000. Can we work a deal?"

Then, if s/he says, "nope the price is firm," then you smile nicely, say, "no, I really wanted to pay 11,000" and you WALK AWAY.

If s/he says, "I can probably come down to 13K", then you smile nicely, say, "no, I really wanted to pay 11,000" and you WALK AWAY.

If s/he says 12,500, then you say, "well, I could PROBABLY come up to 12." Then either you've got a deal at 12, OR s/he says, "$12,500 is as low as I can go", and then you smile nicely AND WALK AWAY.

And as you are WALKING AWAY sometimes what happens is that s/he will suddenly decide that s/he can find it in her heart to knock off the extra and come down to your price.

But the key to all of this is to know in your heart of hearts before you start playing games what YOUR walkaway point is. Rest assured the salesperson already knows what HIS/HER walkaway point is (probably cost plus 10-15%)

I'd also go in near the end of the month. Sometimes salespeople have quotas to meet, and if you've got someone trying to meet a monthly quota, they'll try a little harder to make the deal.

I couldn't have said it better myself....

The main thing is no matter how much you like/love said car DO NOT SHOW them that! and like Rose said be willing to walkaway. Used dealers know that only 10-15% of people return, so they want you to buy and buy now!
This is the last weekend of the month so you should find a great deal!

Also-- A way a lot of dealers sneak in extra money is by charging "made up" fees. For instance, the last car we bought they wanted to charge us $100 for nitrogen in the tires, or a $200 dealership fee (for paperwork)...

SO the only thing I have to add is say you want to be $11k out the door, or whatever your amount is

and I disagree with the cash hurting you.... I think dealers love it when you pay cash... We've bought our last 2 cars that way, and they were very ENTHUSIASTIC to sell to a "cash" buyer.

kennethmgreen

They make money when you finance so saying you have cash in hand has the opposite effect that you would assume. You would be better off financing and then immediately paying off the loan.

Also, go in on the last day of the month. They get bonuses based on units sold and that last day is a big push to sell as many cars as possible regardless of profit.

Good advice. Also, you can say you are looking to finance, letting them assume you are financing with them. They will definitely work with you if they think you are going to finance with them. Negotiate the price you want and pay cash or finance elsewhere. Sometimes the dealers can get good financing. Our bank is good to us, though, and will always get a better rate than what the dealer can offer.

otr12

You can also negotiate the price via email if the dealership has an internet department. The people in the internet dept rarely sell cars themselves. They just set everything up and refer you to a salesman for when you walk in to complete the deal. But if you already have a quote in an email they can't (legally) pull a switcharoo on you.

They will always ask you if you want to buy the extra stuff. Pretend they are offering you cookies and say "No thank you".

Lift_hard_eat_big

Never show how excited you are, and don't let them know you're in a hurry or need to buy a car ASAP. Do your research and find it's current value, never pay MSRP or sticker price, they are usually priced thousands over what the dealer paid for the vehicle. If there is a local dealer with a similar car, tell the salesperson you seen a similar car at "so and so car lot for less $"
On my latest car purchase, I talked the cars salesman down almost $8k from the sticker price.

infamousmk

Yup, cash deals typically mean salesmen get their money right away, instead of after financing has all cleared. The dealership might like the financing, but the guy selling you the car wants your money now. He's more willing to go to bat at the floor managers for your price. Last weekend of the month is good, but go early in the day. The car salesmen I worked with at the Jeep dealership were less likely to work with you if it was late at night. They'd been there 15 hours and just wanted to go home and would let you walk away. A lot of people say to go late at night, but I think it's rude and you're running the risk of not getting the deal you want.

brph26

Thank you all for your responses. They have been very helpful. Now I need to figure out my walk away price.

BigDaddyBRC

They make money when you finance so saying you have cash in hand has the opposite effect that you would assume. You would be better off financing and then immediately paying off the loan.

Also, go in on the last day of the month. They get bonuses based on units sold and that last day is a big push to sell as many cars as possible regardless of profit.

This is somewhat false. As I know the industry rather well...been there done that sort of thing.
The Bank makes the money, not the dealership. The Dealership just gets paid by the bank of the cost + a % over that.

BigDaddyBRC

A lot of good advice. Few things you need to do...RESEARCH the vehicle you want.

If you can pay the car in full, then keep in mind the taxes & registration fees. Also, one of the latest tricks....not giving new tread...negotiate that in, or "out" so you are not screwed. Tires are not covered by warranties. in most cases.

Also, YOU have the best negotiating tool...the money to buy it outright. Which means, it will not continue to sit on the lot. Do not hesitate in walking out. Negotiating can be fun...give some get some...but dont give everything. Look over the CarFax, make sure it wasn't in an accident or had ANY major repairs (engine included).

Use your resources. KBB.com, craigslist, etc. If you have a friend/mechanic (and yes pay the mechanic to go on the test drive), take them. Also, try a relatively new site..http://carbuyeradvisor.com/ The guy that runs this one of my best friends, a former Finance Manager at Dodge dealership, a high end consignment dealership, and run of the mill used car lot. Not sure what all his site has to offer, though.

Remember this.....Do not hesitate in walking out on the negotiations.

jemko

Do you have a check from your bank because you're paying cash out of an account of yours or because you're taking a loan out with your bank? If you're taking a loan out with you bank, consider if you'd be willing to take a loan out through the dealership instead, if they can offer you the same terms or better. 99% of the time, if you agree to have your loan through them, they'll be more willing to work on the price (I know this for a fact, I've worked as a car salesperson before).

If you're paying cash because you don't want to carry a car note, well, that's different.

Also, the above posters are right - know beyond a doubt, before you get in your car to go there, what you will and will not accept and be 100% prepared to walk away. They may stop you, they may not. However, be sure to give them your name and number before you walk away, tell them to consider your offer and call you when they're ready to work the deal. THEN walk away.

brph26

Thanks again everyone!! We got the car, and we got it for $100 under our "walk away" price! Which was also $1000 under the asking price :bigsmile: