T'smom Posted March 10, 2014 Share Posted March 10, 2014 We are going to buy a new car soon. I was wondering how people go about negotiating the price. I know that some negotiating is expected, no one pays sticker price.....but how exactly? We haven't bought a car for 9 years!! We are paying cash and I have read that I shouldn't let them know that because they will be less likely to make a deal because they won't be making money on the financing? Is that true? Thanks! Quote Link to comment Share on other sites More sharing options...
gardenmom5 Posted March 10, 2014 Share Posted March 10, 2014 dh used to be in banking and went through dealer loan files, so he got a really good idea of just how much mark-up is in a car. some tips: 1: do NOT pay "Costco's" "discounted" price. it's a great deal for the dealer. (not nearly as great a deal for the buyer as the dealer would like you to believe.) when I bought my last new car, I was at the dealer for something and I told the salesman to not quote me the Costco price as I wouldn't pay it. so, he quoted me a price several grand above. I told him it was too high, and left. He called me up wanting to know why I left, and I again told him he was too high. I told him how much I was willing to pay, and hung up on him when he started spluttering. oh, and I would have had to order the car from them as they didn't have exactly what I wanted on site. incidentally, I bought the car from another dealer the next day and drove it off their lot (with a feature I hadn't planned on getting, but have been occasionally glad I had.) for the exact price I said I'd pay. I paid less than my friend who bought the exact same car through costco three years previously. keep in mind the dealer wouldn't have sold me that car at that price if they weren't still making money on it. oh - and don't finance through a dealer (big money maker for them.). go to your bank or credit union and get pre-approved for a car loan, or pay cash. 2) I no longer buy "new" cars. I buy used - why should I pay extra just to drive it off the lot? (even if you were to wreck it coming off the lot, you would not get how much you just paid from your insurance. that's how much depreciation there is just driving it off the lot.) the last two cars we've purchased have both been used and fully loaded Toyota camrys. it means knowing exactly what they should be worth in our area.( and the fact both owners upgraded to lexus SUV's helped. the one we got for dh was in pristine condition.) 3 last and MOST important, - be prepared to walk away (that is ALWAYS something you should be prepared to do - especially if you want to buy from a dealer. the one willing to walk is the one with the power.) until THEY sign a contract, it's. not. your. car. dealers want people to "mentally own" the car they're looking at - it's part of their manipulative sales strategy. so mentally step back so you are the one in control. Quote Link to comment Share on other sites More sharing options...
Night Elf Posted March 10, 2014 Share Posted March 10, 2014 I used Edmunds.com to give me an idea on what to pay. I got a report through Carfax as well. We had no trouble getting the car for our price. Quote Link to comment Share on other sites More sharing options...
Lolly Posted March 10, 2014 Share Posted March 10, 2014 End of the month is usually the best time for purchase. They have monthly quotas they are expected to make and are more willing to deal. Always be prepared to walk away. Know the blue book value of the car if possible. Do not be hung up on a certain color. If you at a dealership that will not haggle on the price of the car you are purchasing, expect them to haggle on the price of your trade in (If you have one). Toyota has non-negotiable prices on their new or warrantied used cars (at least here). That was fine with me. When it came time to talk price, I told them how much I wanted for my trade-in. He told me no way. I told him that they may not have negotiation room on the sticker price, but they did have it on trade-ins, said so long and got up to leave. He chased me down. If I was willing to buy it that day (last day of month), they would give me my asking price for my car ($3,000 more than they had offered). If I had not been serious about leaving, they would have never come back. Quote Link to comment Share on other sites More sharing options...
T'smom Posted March 10, 2014 Author Share Posted March 10, 2014 Oh, we are definitely buying a used car. I just meant "new to us". Sorry. I found one that I really like, and then there was an advertisement today that a different place (not the one that has the one I like) will give you 3000 on your trade in no matter what. Just this week. And we have a car that we could trade in probably worth $500 (we drive cars for a looooong time!) and there are a couple vans there that meet 90% of our criteria, so....... We're going to go look tonight! Quote Link to comment Share on other sites More sharing options...
Guest Posted March 11, 2014 Share Posted March 11, 2014 Too bad you aren't near where my dh works. He is one of the few honest salesmen out there. The dealership doesn't always like that, because it means they lose out on a sale. But it means he gets repeat customers, referrals, etc. He looks at any customer as a family member. Thinking that way means that he thinks of how he would feel if someone tried screwing over one of his family members. If he knows a car has issues, he will flat out tell them instead of trying to cover it up. If he knows their bad credit means a huge car payment, he will tell them that as well. Most people appreciate that, even if it means that he doesn't sell them the car that they really want. (But can't realistically afford.) Fwiw, they stand to make more on a used car than a new one. New cars come in at a set cost, and most dealerships can't sell above a certain amount. So the profit margin is pretty much set. On the other hand, used cars come in at trade in cost, which is sometimes well below what you would get through a private sale. They can turn around and sell it for whatever they choose, making a bigger profit because of the difference between their cost and the selling price. If you only knew all the costs that the dealer gets before the salesmen get their percentage...it's ridiculous. Sometimes 5-6 hours of working one deal gets them less than $75 in commission. Not a lot when they know how much total profit was made on the sale. Reason number 9,231 that I wish dh could get into a different business. Quote Link to comment Share on other sites More sharing options...
Jackie Posted March 11, 2014 Share Posted March 11, 2014 You can find book prices online through kbb.com and nadaguides.com - I bookmark both on my phone and check both of them when shopping. Always have a private mechanic check out the car before buying. I've learned some very interesting things about the condition of cars this way, which either stopped the sale or gave me a negotiating advantage. Quote Link to comment Share on other sites More sharing options...
ThisIsTheDay Posted March 12, 2014 Share Posted March 12, 2014 Look for the Consumer Reports Guide on how to buy a used car. It will provide you with a wealth of tips for negotiating, maintenance reliability, and a lot more. Some of what you do will be based on your own needs. For example, my dh wanted a specific car and searched cargurus.com for almost a year before he found what he wanted at the price he would pay. I like that particular website and will be using it to buy a car for my kid soon. Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted March 12, 2014 Share Posted March 12, 2014 We are going to buy a new car soon. I was wondering how people go about negotiating the price. I know that some negotiating is expected, no one pays sticker price.....but how exactly? We haven't bought a car for 9 years!! We are paying cash and I have read that I shouldn't let them know that because they will be less likely to make a deal because they won't be making money on the financing? Is that true? Thanks! Here's what you do: Find a car you like. Look on Edmunds.com in the "True Market Value" section and price out exactly what that car should cost. Do you mean "new" as in brand new car? Or new as in "new to you"? I'm assuming you are talking about buying from a dealer. You do this in a specific order that you do not vary. You never, ever, EVER tell them up front that you will not be financing or that you do or do not have a trade in. You say that you really need to keep things in order, and you need to agree upon the price of a vehicle first, before you can address other issues so that you can "keep it all straight". If that price is good enough, you can consider the other factors of a trade in and/or financing. Tell them you are a price buyer (they will assume you are a payment buyer). Have a pad of paper with you and write down everything they say. They will attempt to confuse you and "allow" you some unreasonable amount for your trade it that they assume you have, when they are actually working from top retail price. You only work from current value and do not permit them to mix in trade-ins or talk about payments. Tell them you really are only interested in price OTD (out the door). If you are buying new, go to ebay motors and see actual sales prices for new vehicles. Edmunds also has a forum about what people paid for specific models. VERY helpful site. If they kick you out late and night and no one will shake your hand, you got a reasonable deal. If they play, "Oh, you really got SUCH a great deal. You sure know what you are doing!", you got taken. Edmunds.com rocks. It is better than KBB for buyers. Sellers use KBB because the prices are higher. You want to use Edmunds tools, as a buyer. Read EVERY SINGLE WORD of anything you sign. They often slip in things that you didn't approve, such as extended warranties, or cleaning fees, or other things. Resist every single one of the junk fees and profit items. Be ready to walk out at any time. I've had to walk out every time I've dealt with a dealer. If they want your business, they will call back. I mostly buy private party now. Quote Link to comment Share on other sites More sharing options...
Halftime Hope Posted March 12, 2014 Share Posted March 12, 2014 Always ask for the Autochek report (it's more accurate and complete than Carfax.) If they don't have it, don't buy the car. We got our own subscription ($50 for a year of unlimited lookups by VIN #) so we could check every car we were interested in. Autochek kept us from getting hosed on a car that had been flooded, repaired, and then kept sitting on successive dealers' lots. We wouldn't have known, as it didn't say flood damage on the report, but the time frames and the origin of the car told the "untold story." Quote Link to comment Share on other sites More sharing options...
T'smom Posted March 13, 2014 Author Share Posted March 13, 2014 Thanks! I had been using Kelly blue book, I had never heard of edmunds or auto check. We looked at a couple the other night, but nothing that we liked. They were trying to be soooo secretive about the price. When I finally got him to tell me the price on one, I just laughed! There was no.way. we were paying anything close to what he was asking! Quote Link to comment Share on other sites More sharing options...
Barbara H Posted March 13, 2014 Share Posted March 13, 2014 Lots of good advice. I strongly agree with the advice to make it clear you are shopping only for price on the vehicle - not interested in talking about payments or trade in. You are interested in what you think is a reasonable price for that vehicle only. Get the vehicle history first - don't waste time driving or looking at any car that has a bad history. My other suggestion would be to try to get firm in your own mind what your parameters are as far as cost and the brands/models you will consider. That way you don't have to waste time resisting getting pushed into stuff you aren't interested in. Rather than saying "I want to spend x dollars." I would say "I'm interested in brand, model, year..." So, something like "we are interested in a budget sedan, such as a 2008-2010 Hyundai Elantra or a 2007-2009 Toyota Corolla." They may respond "how much do you want to spend?" and you go back to talking about the years and models you've already identified. Good luck! Quote Link to comment Share on other sites More sharing options...
Journey Posted March 14, 2014 Share Posted March 14, 2014 Remember to call your insurance company when you find a car you like to find out how much it's going to raise your insurance. Quote Link to comment Share on other sites More sharing options...
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