- This topic has 8 replies, 5 voices, and was last updated 9 years, 9 months ago by
.
-
Topic
-
-
Replies
-
Find a dealership that is way out in rural suburbia, far away from frequent business. You may have to drive 3 hours or so to get there. Do some research online regarding the exact car you want including color, features and options. Next, research the price by going to various online car sites. Try to find out what the dealer cost is, you can do this by calling a fleet car broker.
Once you determine the rock bottom price, add in a few thousand dollars for their profit. You should still be at this point considerably lower than asking price.
Most local dealerships in a big city or what have you probably will say no to your price because it is so low and they get allot of business and probably are not wiling to give away a car. A rural dealership needs to move inventory.
Call that rural dealership here is the script …
“Frank, I’m calling from 3 hours (whatever hours) away. I’ve got a local dealership in town. I’m willing to drive all the way out to your dealership and buy a car from you with no haggling if you will agree to my offer. I will email it to you and get back to me.”
He will agree.
Email him your offer and make sure you don’t leave out anything you want. If you did your homework right, he won’t counter your offer. He will talk to his manager, get approval and call you back and say yes. Just to cover your backside, ask him to have the manager email you personally to confirm it has been approved. Take a printout of that email with you.
Enjoy your leisurely drive and go buy new car and your awesome price.
I did this with my 2003 Sorento with all the bells and whistles and got it for $3,000 less than any dealership near me. I’m sure they didn’t make allot of money on my deal, but they were willing to do it to move inventory. It was worth the drive.
Thanks.
So taking a real world example.
I know this isn’t a rural dealership, but how would you arrive at a good “out the door” price to offer? For instance I took the vehicle above and went to Edmunds.com and ran an appraisal.
True Market Value for ‘Trade-In’ was $18,200 and the ‘Dealer Retail’ was $20,005.
This car is priced at $20,251 so surely there has to be some sort of markup. Would an “out the door’ offer of $19,110 be legit? I took trade-in value and added 5% to it.
We are talking about a new car correct? Alright 3 buying rules to keep in mind:
1. Never EVER pay sticker. Nowdays you want to try to get the car for less than the manufacturers invoice to the dealer even.
2. Check it out first, even new cars have flaws and some lemons exist. Always visually inspect and test drive.
3. Negotiate a fair price for both parties, the general manager/sales department won’t appreciate the scales being tipped too far in your favor. On the other side of the coin, nor would you appreciate them taking you for a ride. You want to have a good standing with the GM, because he is the service managers boss afterall, when you need service if you catch my drift.EDIT: Usually, if you have a trade-in, that is the best way to go, in my experience, it gives you more leverage. On the other hand, selling in a private sale usually gets you more for your car, which is more to go to the dealership with, however I still advise a trade-in. You want to talk about the trade-in before negotiations. This is will be a separate negotiation in itself. The trick is, to get the most for your trade in, and pay the least for the new car, while still being fair to everyone. Keep in mind, these dealers get manufacturer incentives and subsidies for different things, you are more likely to get the short end of the stick than them if you don’t even the scales. They already have the advantage. But they will not appreciate it if you tip the scales too much in your favor, which is difficult anyways. Normally, people come out with a fair deal if they are good with negotiations. Never be afraid to ask questions. Never be afraid to walk away.
Thank you! Actually I’ll be buying used. Most likely something 1 or 2 years old. Something that’s off lease, etc… Like the van I linked to above.
Many dealers big and small love to shove that Carfax thing in on the deal. They will wax on about how its never been in an accident solely because of the Carfax. Carfax is pretty worthless for many reasons. I am a retired auto body man. Most accidents are front end. Raise the hood. See the bolts that hold each fender on? They were painted from the factory after it was all assembled. If those bolts have paint scratched off as if a tool had removed then reinstalled them, then its definitely been wrecked before. If you have a code scanner, take it with you or stop by any Autozone since they scan for trouble codes for free. When you first turn the key on, the check engine light should come on for a couple of seconds then go out. If it never comes on, then the bulb for that was removed by the seller to cover up issues. After the engine has been driven for 10 or more minutes, park it with the engine running, pop the hood. Remove the oil fill cap. Is there a blue like smoke coming out of that spot? Is there a milky sludge under the oil fill cap? Those things spell engine work in the thousands. Don’t be afraid to have it checked. Good luck!
I found a 2012 T&C Limited Edition with 33k miles on it locally at a dealer. All maintenance and oil changes have been done regularly. Car is off lease. They want $25,300 for it but that seems a little ridiculous. Pretty sure a new 2015 Touring model could be had for that or under. The Edmunds trade in value is $20,800. I was going to offer $19,500 out the door. Probably work my way up to trade in value if needed. Good idea or is that offer to low?
Also, anything to be concerned about with the 3.6L V6?
Thank you!
My car buying tips FWIW… just a blast not all directed at the OP…
If the salesman firsts asks “how much can you afford a month” they are testing you to see if you are an idiot…. Politely explain that the final cost of the car is what you are concerned with and what we need to discuss, and that financing decisions come after the price is determined… That is a nice way of saying “FU for thinking I am an idiot”… Sets the proper tone and makes the salesman know you aren’t a rube…
If you don’t have to trade in a car…. Don’t. Sell it outright on CL or some other way… When you are trading in a car you are essentially negotiating on two fronts, the price of their car and the price of yours… They will tip it both ways (less for trade in, more for new car), (less for new car, more for trade in) but the two numbers when subtracted are still the same number….. The dealer has an advantage here… You are more likely to get a better price selling the car yourself and that added money can make up for the increase in taxable amount of the new car…
When a trade in must be done, you should try to get the most from your trade in (this lowers the taxable amount on the sale of the new car)
Always be willing to walk… and do… Have a strong negotiating position….A technique I learned years ago was when buying a new vehicle for my wife… She found the vehicle she wanted and she had GOO-GOO eyes for this particular vehicle… I was screwed… the salesman knew she would not let me leave without this vehicle… My negotiating position was weak… Ever since then, she finds the car, lets me know which one she wants then goes away…. My attitude is entirely different, I am not emotionally invested… I can take my time and negotiate and it has worked out perfect ever since… I even negotiated a car for my mom in Florida on the phone over the course of 5 days… Try to keep emotions out of the deal….
Be nice… Say “I think we are close but not there”
Getting the best price on a car may take a couple of days and may take many phone calls back and forth…
When they say “we can’t do that” on a reasonable offer, smile or be polite if on the phone and say… OK I appreciate your time… “we were close”…. They will call you back… TRUST ME…
If they say… This is the best price we can do (and it is sticker) it is BS…. Give them an offer, if it is reasonable you will hear back from them…
If you want new tires put on it, make that part of the deal…Get everything you want on it…
I will say that buying a car is a dance… After many years I have learned the ‘Tango’ so to speak, it can be tiring and occasionally you may lose the car you want, but if you make a price in your head, try to stick with it…
Remember, the guys selling you a car are pros… Regular people may buy a car every 4-6 years, so an average 30 year old may have only done this a couple of times in their lifetime… the salesman may have sold more cars than you have owned in a month or less…
Extended warranties are generally not worth the money they cost…
Be polite and be nice… No one wants to negotiate with a jerk… They have a line they have to meet as well… It is possible to get a deal that you want and benefits the dealer, but oftentimes it takes work.
Pass it on… I brought along my 19 YO niece when I bought my Escalade… I showed her how to respond to questions (do you want that extra undercoating, Seat treatment and guarantee, extended warranty?) and showed her what I said. “No thank you to any extras, if you have to bring them up because your manager makes you I will listen, but please be brief”. I let her sit in on the negotiation process and hear what when we were negotiating price on a speakerphone.. Now she is a little better prepared for her first car purchase when it happens.
Dealers really can cornhole young people because of two reasons… One, young people REALLY want the car so bad they are going to piss themselves, two they have no EXPERIENCE in negotiating and dealing with professional salesmen…
EXAMPLE.. I was brought in late when my nephew bought a used Cobalt SS. He had just started negotiating when he called me… The salesman knew my nephew did not want to leave that day without the car… I immediately drove down and asked for 2k off sticker, the salesman IMMEDIATELY agreed. I slapped myself in the forehead and was about to slap my nephew because if the salesman knocked off 2k without going to his manager then it was really overpriced and we could have done better if he would have told me about buying a car beforehand and I could have researched more and if we walked and done some real negotiating… My negotiating position was weak to say the least….
Anyway… about your situation.. Starting at your price you are willing to offer ($19,500) gives them only room to move it up… Start lower or hold firm at that price… If they come back with $23,000 then you have more work to do… If they eventually get to say $21,000 you may say, I like that price, but for that I want new tires on it, DVD Package installed, New Stereo, etc……. (again this is the dance)
Lastly, I would pass on the Chrysler, just for that reason… not trying to hate, but just personal opinion about Chrysler quality (or lack thereof)
JMHO
-Karl
Thanks for that. Very helpful.
i really just want to negotiate via email. Basically, give them my “out the door” price. I have already been working with a salesman so he can call me or reply with a counter offer. I don’t see the need to really go in just to tell them my offer and leave, because I’m not going to go into their office unless we have a price settled.
I’m prepared to walk away.
- You must be logged in to reply to this topic.