New Car Negotiations

BiggestBest's Avatar
This strategy has worked well for me:

1) Do your research ahead of time. Pick out the exact options you require, color, etc. Always say that you are "just looking". Never fall in love with a specific car. Never go into a salesman's office. Never accept their business card. If they start bothering you, get in your car and leave. Research the dealer's cost. In the spring (March or April), Consumer Reports has an auto issue that is good for prices and repair records and features comparison.

2) Armed with your model and list of options, call the dealership and ask for the sales manager. (He doesn't have to pay a commission to any of his salesmen on this deal.) It is best to buy at the end of the quarter (end of September, but you may not have time to finish the research) or end of the month. I call about a week to 10 days before the end of the quarter or month.

3) Tell the sales manager that you know how the game is played. You have a list of options you want and you are buying a car from someone this week. No trade-in and you are paying cash (no loan needed). Don't be cocky, just confident and business-like.

4) He gets one chance to give his best offer. He'll suggest that you call the other places first and come back to him. No. He can choose to make an offer or not. You are calling other dealers. Mention that if the price is too high locally, you are willing to drive to Columbia or Omaha or St Louis to get the best deal from someone else. Ask if he wants your purchase to be included in his numbers or someone else (an out of town dealership). Most smart sales managers will make an offer.

5) Look at the offers compared to the Consumer Reports dealer costs. If they are too far off from cost (he can live with $500 profit or even less to make his numbers at the end of a month) then call in a wider circle (Columbia, Topeka, Omaha, Des Moines, St. Louis) until you have a reasonable price.

6) Be careful on the back end of the deal. AFTER you agree on price, they will try to sell you all kinds of crap you don't need. Undercoating, soundproofing, extended warranties, etc. You don't need ANY of that. It is just a way to get more money for almost nothing.

7) If you actually have a trade-in, then AFTER you have agreed on price for the new car, ask how much they could pay if you decided to trade-in. Don't be offended, it will be VERY low. You can sell it yourself for a better price. Use kbb.com to get the "private sale" value and put it on Craigs List.

Good luck!
KCJoe's Avatar
  • KCJoe
  • 09-30-2010, 11:37 AM
KCJoe, I think it would help out if you let us know what make and model you are interested in purchasing. That may allow us to help you further. Originally Posted by kcbigpapa
I've been thinking of either the Focus or Malibu. I've got an itch for a new car, but so far, just talking to salespeople has made me not want to buy anything. Doesn't seem like you can get a straight answer.
Both very popular and highly rated so it will to harder to gain a big discount I think. Month end quarter end is a good ploy.
JT's Avatar
  • JT
  • 09-30-2010, 10:25 PM
This strategy has worked well for me:

1) Do your research ahead of time. Pick out the exact options you require, color, etc. Always say that you are "just looking". This will let the saleman know you're just wasting his time. Never fall in love with a specific car. Now the saleman knows not only are you wasting time, but you also can't make a decision. Never go into a salesman's office. I guess you're never going to buy a car. Never accept their business card. Huh?? If they start bothering you, get in your car and leave. Awwww, don't bother me or I'm going home. Now all the other salesmen are laughing at you saying I bet that guy used to get his ass kicked on the bus everyday. Research the dealer's cost. In the spring (March or April), Consumer Reports has an auto issue that is good for prices and repair records and features comparison. How does Consumers Report make their money? From advertisers. Do you honsetly think they are going give the companys that spend the most money on ads a bad rating? Have another cup of Kool Aid.

2) Armed with your model and list of options, call the dealership and ask for the sales manager. (He doesn't have to pay a commission to any of his salesmen on this deal.) He doesn't deserve to get paid? That poor guy is just trying to make a living and support his family. Do YOU work for free?? Do you go to the grocery store and ask the manager to check you out so they don't have to pay the cashier and then ask them to dedcut the cashiers pay from your bill? It is best to buy at the end of the quarter (end of September, but you may not have time to finish the research) or end of the month. I call about a week to 10 days before the end of the quarter or month. Dealers don't ever want to sell cars the rest of the month??

3) Tell the sales manager that you know how the game is played. I bet he's scared now. You have a list of options you want (and probably can't afford)and you are buying a car from someone this week. No trade-in and you are paying cash (no loan needed). Don't be cocky, just confident and business-like. I bet he's never heard that before and won't know how to react.

4) He gets one chance to give his best offer. He'll suggest that you call the other places first and come back to him. There is no GOOD saleman that's going to tell you to call his competitor. No. He can choose to make an offer or not. You are calling other dealers. He already knows that. Mention that if the price is too high locally, you are willing to drive to Columbia or Omaha or St Louis to get the best deal from someone else. Are you also willing to drive out of town to get the car worked on? Oh sure you can get your work done locally, but if there's 10 cars there for service and 9 of them bought their cars there. Who do you think goes to the end of the line? Ask if he wants your purchase to be included in his numbers or someone else (an out of town dealership). Most smart sales managers will make an offer.

5) Look at the offers compared to the Consumer Reports dealer costs. If they are too far off from cost (he can live with $500 profit or even less to make his numbers at the end of a month) he can tell his employees they're not getting paid this week because he didn't make any money on the cars he sold then call in a wider circle (Columbia, Topeka, Omaha, Des Moines, St. Louis) until you have a reasonable price. Also ask the out of town dealers if they will drive to KC and pick up and deliver your car (that they didn't make any money on) for warranty work.

6) Be careful on the back end of the deal. AFTER you agree on price, they will try to sell you all kinds of crap you don't need. Undercoating, soundproofing, extended warranties, etc. You don't need ANY of that. It is just a way to get more money for almost nothing. What a great idea! Go out and spend $20,000 on a new car and don't do anything to protect your investment. Infact go ahead and cancel your insurance too, hell it's only $20,000.

7) If you actually have a trade-in, then AFTER you have agreed on price for the new car, ask how much they could pay if you decided to trade-in. Don't be offended, it will be VERY low. So you want the dealer to make nothing on the car he sells you and give you retail for your car??? You can sell it yourself for a better price. Use kbb.com to get the "private sale" value and put it on Craigs List. Then if you're real lucky the dealer will have to close and put another 100 people out of work.

Good luck! Originally Posted by BiggestBest
You're going to need it
BiggestBest's Avatar
Apparently, we now have the "slimy used car salesman" point of view. LOL.

I used this method to buy my last two new cars. The last one was a Honda Civic and next year's model with the options i wanted had a list price of $18,000. I got it for $14,400. Consumer Reports (who has no ads in their magazine) had dealer cost at $14,300.

All of your arguments are pure salesman BS. I bought it out of town and the local dealer handled the warranty work with no problem. That was the same local dealer who told me that he couldn't drop the list price at all for next year's model on a car with "no profit margin". Yeah, right.
JT's Avatar
  • JT
  • 10-01-2010, 08:50 AM
Sales, yes. Used cars, no. Slimy, Ive been called worse, but I've never been called a cheap mother fucker.
Lets please not get into a pissing match. Both sides have had their chance to vent.
dirty dog's Avatar
Sales, yes. Used cars, no. Slimy, Ive been called worse, but I've never been called a cheap mother fucker. Originally Posted by JT
If you werent trying to hit a home run on every sale, if you didn't fuck every woman that you sold a car to out of her money and if you didn't try to screw everyone with your over priced profit makers such as undercoating and other "custom items", people wouldn't think of you has a slimy salesmen, but then you wouldn't be a car salesmen. What dealer to you work at so I will know where not to send my friends and family, because your attitude shows that you are the kind that has to have maximum profit on every sale rather than just a modest and fair one. By the way, even if everything went exactly as biggest said, your dealership would still make money on the dealer incentives you will forget to tell the purchaser about or from the kick back you get from the maker. Its easy not to be a "cheap mother fucker" when you're spending other people's money.
JT's Avatar
  • JT
  • 10-01-2010, 08:48 PM
DD - Let me be a little more clear for you. Am I in sales? Yes. Am I in car sales? No. It doesn't matter what anyone selling or what service they're providing. When there's a salesman or lady for that matter out there working, trying to support a family and a person goes around them and tries and cut them out so they make no money, that's chicken shit. Would you go in a restaurant and and ask the manager to seat you so you don't have to tip the hostess? Would you ask the manager to serve you so you don't have to tip the waitress? I'll ask you the same thing I asked BB (which he refused to answer). Do you work for free?
Cheaper2buyit's Avatar
I will say this the salesperson on a carlot makes min wage if they don't make quote & now a days the mark up on a car is 0nly about 3k to 4k now used cars they spend about 1k on every car. So as a inside person most ofthe people that get these way below price cars are buying usa made cars which is why a loy of dealers are going out of biz. I have no problem with a person wanting a good deal but you have to understand the salesperson might only make 100 to 200 of the car. What makes me made sometimes is that most people don't understand this but they buy every thing else at what ever price is set like when you buy bread you don't say hay I want to this bread for $1.00 & it cost 2.00 you just buy it. THE MARK UP ON CARS IS THE SMALLEST MARK UP OF ANYTHING YOU BUY. GET A GOOD DEAL BUT DON'T RAPE A HARD WORKING GUY THATS JUST TRYING TO FEED HIS FAM. IF YOU GET A DEAL THATS JUST TO GOOD TO BE TRUE YOU CAN BET THAT PERSON IS GOING TO BE FIRED IN A MONTH OR SO SO JUST GET A GOOD DEAL SAVE SOME MONEY BUT DON'T RAPED THE SMALL FRY. ASK FOR THINGS LIKE FREE OIL CHANGES OR CHEAP SERVICE CONTRACTS EVEN SUN ROOFS LEATHER BUT LET A HARD WORKING GUY MAKE SOMETHING JUST MY 2 CENTS
dirty dog's Avatar
I will say this the salesperson on a carlot makes min wage if they don't make quote & now a days the mark up on a car is 0nly about 3k to 4k now used cars they spend about 1k on every car. So as a inside person most ofthe people that get these way below price cars are buying usa made cars which is why a loy of dealers are going out of biz. I have no problem with a person wanting a good deal but you have to understand the salesperson might only make 100 to 200 of the car. What makes me made sometimes is that most people don't understand this but they buy every thing else at what ever price is set like when you buy bread you don't say hay I want to this bread for $1.00 & it cost 2.00 you just buy it. THE MARK UP ON CARS IS THE SMALLEST MARK UP OF ANYTHING YOU BUY. GET A GOOD DEAL BUT DON'T RAPE A HARD WORKING GUY THATS JUST TRYING TO FEED HIS FAM. IF YOU GET A DEAL THATS JUST TO GOOD TO BE TRUE YOU CAN BET THAT PERSON IS GOING TO BE FIRED IN A MONTH OR SO SO JUST GET A GOOD DEAL SAVE SOME MONEY BUT DON'T RAPED THE SMALL FRY. ASK FOR THINGS LIKE FREE OIL CHANGES OR CHEAP SERVICE CONTRACTS EVEN SUN ROOFS LEATHER BUT LET A HARD WORKING GUY MAKE SOMETHING JUST MY 2 CENTS Originally Posted by Cheaper2buyit
How are you raping them, they have the final decision on what they will sell the car for. If there getting raped it's because they allowed it. They DONT HAVE TO SELL THE CAR AT THE PRICE YOU OFFER they can say no. No dealer sells a car at a loss, even if they tell you they are. You make is seem like they HAVE TO SELL THE CAR FOR THE PRICE THE CUSTOMER OFFERS, they dont, they control the price they will sell the car at. For every customer who knows the deal and how to get the best price there are 20 who dont and get screwed so stop the boo hoo for the salemen crap.

JT other than houses, cars are the only sales item you can really negotiate a price on. And as I stated above, you know what your drop dead price is, if you sell the item without a profit its your fault ( I know your not a car salesmen), the difference is the greed factor, the dealership wants to make $3000.00 profit on the car instead of a fair profit. I am in the sales business to, you can have very high prices and sell 2 items or you can have fair prices and sell 200.
Omahan's Avatar
What makes me made sometimes is that most people don't understand this but they buy every thing else at what ever price is set like when you buy bread you don't say hay I want to this bread for $1.00 & it cost 2.00 you just buy it. Originally Posted by Cheaper2buyit
The new car industry is to blame for this because of their sales practices over the years. People who come in and pay full sticker price get fucked. The customer who fights and claws for a deal gets the better deal. The car dealers created that climate - not the buyer. Saturn tried to change it without much impact.
BigMikeinKC's Avatar
Start with the Consumer Report and you will find out what the dealer is paying. Little know is that the dealer will also get $500 - $1000 from the car maker, in additon to the "invoice" as an incentive for keeping the car on the lot. don't indicate a trade in until after you strike a deal on the new car price. Don't use dealer financing, go to your credit union or bank, however, indicate that you are intersted in dealer financing at the beginning of negotiations. (they may lower the price, figuring that they will screw you on financing) Bring a check for the agreed upon car price. When you go to pay have your check from the bank for the aggred upon price. and when they hit you for the $200 paperwork fee, start throwing a fit -- its called their overhead!!! They will lower the car price to compensate, if not, leave and they will usually chase you down.

Take no aftermarket add-ons, you can get them cheaper later from other sources. No extended warranties. My line is "if the car is so unreliable that I need an extended warranty it must be a POS and I don't want it." Most importantly, do your research, know what you want and stick to it, don't let them steer you to a higher price model.

Now, you've gotten your car and the dealer has made a small profit. Now, they figure they will screw you on service -- Take you car to a different dealer for service.

Good Luck!
BigMikeinKC's Avatar
You're going to need it Originally Posted by JT
Originally Posted by BiggestBest
This strategy has worked well for me:

1) Do your research ahead of time. Pick out the exact options you require, color, etc. Always say that you are "just looking". This will let the saleman know you're just wasting his time. (Actually the salesman who was "front" will turn it offer to the "last", who either just sold a car, so he can afford to take a hit, or is the lest experienced.) Never fall in love with a specific car. Now the saleman knows not only are you wasting time, but you also can't make a decision. Never go into a salesman's office. I guess you're never going to buy a car. Never accept their business card. Huh?? If they start bothering you, get in your car and leave. Awwww, don't bother me or I'm going home. Now all the other salesmen are laughing at you saying I bet that guy used to get his ass kicked on the bus everyday. (Who cares, if they won't deal leave.) Research the dealer's cost. In the spring (March or April), Consumer Reports has an auto issue that is good for prices and repair records and features comparison. How does Consumers Report make their money? From advertisers. Do you honsetly think they are going give the companys that spend the most money on ads a bad rating? Have another cup of Kool Aid. (Consumer's Reports is not for profit and takes no money from advertisers. So other rags that use "consumer in their name do.)

2) Armed with your model and list of options, call the dealership and ask for the sales manager. (He doesn't have to pay a commission to any of his salesmen on this deal.) He doesn't deserve to get paid? That poor guy is just trying to make a living and support his family. Do YOU work for free?? Do you go to the grocery store and ask the manager to check you out so they don't have to pay the cashier and then ask them to dedcut the cashiers pay from your bill? ( I have heard the best dealers are the "internet" salesman - but have no personal experience)It is best to buy at the end of the quarter (end of September, but you may not have time to finish the research) or end of the month. I call about a week to 10 days before the end of the quarter or month. Dealers don't ever want to sell cars the rest of the month?? (no, but the salesmen are under pressure to make their quota. Actually the best time is AFTER the new years models are in, go for last years, they want them off the lot.)

3) Tell the sales manager that you know how the game is played. I bet he's scared now. You have a list of options you want (and probably can't afford)and you are buying a car from someone this week. No trade-in and you are paying cash (no loan needed). Don't be cocky, just confident and business-like. I bet he's never heard that before and won't know how to react. (Always, say you want financing, often they will lower the price to get you on the financing, but when you show up to buy, bring cash. Te two deals are different - if they balk, call the AG.)

4) He gets one chance to give his best offer. He'll suggest that you call the other places first and come back to him. There is no GOOD saleman that's going to tell you to call his competitor. No. He can choose to make an offer or not. You are calling other dealers. He already knows that. Mention that if the price is too high locally, you are willing to drive to Columbia or Omaha or St Louis to get the best deal from someone else. Are you also willing to drive out of town to get the car worked on? Oh sure you can get your work done locally, but if there's 10 cars there for service and 9 of them bought their cars there. Who do you think goes to the end of the line? (you don't have to get your car serviced at a dealer to keep the warranty intact) Ask if he wants your purchase to be included in his numbers or someone else (an out of town dealership). Most smart sales managers will make an offer.

5) Look at the offers compared to the Consumer Reports dealer costs. If they are too far off from cost (he can live with $500 profit or even less to make his numbers at the end of a month) he can tell his employees they're not getting paid this week because he didn't make any money on the cars he sold then call in a wider circle (Columbia, Topeka, Omaha, Des Moines, St. Louis) until you have a reasonable price. Also ask the out of town dealers if they will drive to KC and pick up and deliver your car (that they didn't make any money on) for warranty work.

6) Be careful on the back end of the deal. AFTER you agree on price, they will try to sell you all kinds of crap you don't need. Undercoating, soundproofing, extended warranties, etc. You don't need ANY of that. It is just a way to get more money for almost nothing. What a great idea! Go out and spend $20,000 on a new car and don't do anything to protect your investment. Infact go ahead and cancel your insurance too, hell it's only $20,000. ( go elsewhere for aftermarket items - its cheaper)

7) If you actually have a trade-in, then AFTER you have agreed on price for the new car, ask how much they could pay if you decided to trade-in. Don't be offended, it will be VERY low. So you want the dealer to make nothing on the car he sells you and give you retail for your car??? (Who are you lokking out for, yourself or the dealer/)You can sell it yourself for a better price. Use kbb.com to get the "private sale" value and put it on Craigs List. Then if you're real lucky the dealer will have to close and put another 100 people out of work. ( Right, for everyone that gets a good deal, there is some chump paying full sticker.)

swarmyone's Avatar
I NEVER take my vehicle for the dealership for service. It is well known that they make little money from the sale of the vehicle. Their bread and butter is through service. I have never had a postitve experience at a dealer service center, but could give at least a half dozen tales of how I was literally ripped off (or almost ripped off before I called them on it).