MAYBE helpful hints buying a car

[GRAMPS SS]

What the Dealer Says:

"You have to make the deal today."

What You Should Say:

"Sorry, this offer expires tonight."

In this scenario the dealer quotes a price, but to apply pressure to the buyer the deal is only good for that day. This gives the buyer little chance to research the price or find a competing offer from another dealership. Fortunately, the buyer can regain control by coming up with his or her own price and adding, “My offer is only good for tonight.” A dealer desperate to make a sale will have little recourse, and should they not agree to the price the buyer is free to walk away. Just be sure to do your research before you go to the dealer so your offer is actually low enough.



What the Dealer Says:

"I have to check with my manager."

What You Should Say:

"I have to check with my spouse."

A salesperson often will tell you that he has to confer with a sales manager to see if the price he comes up with is agreeable. Thus, the manager becomes the bad guy and the salesperson comes off as being in the buyer’s corner. Don’t be fooled and don’t be afraid to use the same tactic. If you need time to think about it and you don’t want to come off as the bad guy, tell the salesperson you have to confer with your spouse. It helps to paint the spouse as the disagreeable sort. Don’t have a spouse? Try accountant, therapist, astrologist, cult leader, food taster, or any other authority figure whose opinion you supposedly value. Have the other person play the role of the bad guy who’s holding up the deal. It’s not uncommon for salespeople to belittle a customer for letting the “little lady” or “chauvinist husband” tell them what to do, so be prepared to set your ego aside and admit you’re only one member of the team making the decision.



What the Dealer Says:

"I have to put food on my table."

What You Should Say:

"I have to keep food on my table."

To play on the buyer’s compassion, the salesperson might tell you that he has to put food on his table. Apparently, the deal is so in favor of the buyer that the salesperson will starve if the deal gets any better. Remember, you’re the one unloading the cash, not the salesperson. Tell them, “I have to keep food on my table.”



What the Dealer Says:

"We’re already losing money on this deal."

What You Should Say:

"I’m already losing a hell of a lot of money on this deal."

To convince the buyer of the excellent deal that is being made, the salesperson might tell the buyer that the dealer is losing money on the deal. This is another tactic designed to appeal to one’s sympathy. Consider that the buyer is the one who is losing, or at least giving up, thousands of dollars. Be sure to remind the salesperson that you are the one losing the money.



What the Dealer Says:

"I’ve got another offer, this is in high demand."

What You Should Say:

"I could go down the street and get the same car."

Car salespeople will always try to convince the buyer that the car they are considering is in such high demand that they’d better move quickly or risk losing the car. “Other interested buyers” and “production shortages” are ruses designed to make the buyer believe that buying immediately is necessary. Mass-produced cars are, as the name implies, built in huge numbers. Even if what the dealer tells you is true, another just like the one you want will be built and available soon. And there are almost always other dealers that will have the same car or something close.



What the Dealer Says:

"This is the only one like it, take it or leave it."

What You Should Say:

"I am the only person who would ever buy this ridiculously unusual car."

Hard-core car enthusiasts often find themselves considering cars that ordinary buyers don’t even know exist. Consequently, the automaker doesn’t make a lot of these cars because the market for them is so thin. But they are out there. Somewhere a Cadillac dealer has a CTS with a six-speed manual transmission and it’s more than likely that the salesperson is telling the buyer, “This is the only one like it, take it or leave it.” The seller should respond in kind with, “I am the only person who would ever buy this ridiculously unusual car.”



What the Dealer Does:

Last-minute price increase or hidden fees

What You Should Do:

Last-minute offer decrease

If the dealer knows that you’re seriously interested and a price has been agreed upon, occasionally the dealer will surprise the buyer with a last-minute price increase or previously undisclosed fees and, of course, a plausible-sounding excuse for the increase. Don’t give in to this tactic. Try countering with a last-minute offer decrease.



What the Dealer Says:

"I’m throwing in all this for free."

What You Should Say:

"I don’t even want all this stuff."

A salesperson will often attempt to justify an inflated price by including valueless items like pinstriping, undercoating, fabric or paint protectant, or pre-sale inspections. Sometimes even optional equipment may be part of the deal and appear to be free. If you don’t want the extra options, just let the dealer know. Tell the dealer, “These non-factory items, if anything, make this car worth less to me.”


:thumbsup

[hotshift13]

Thanks, I guess I didn't know their was that much wiggle room in the price of a new car. Do these tatics work in the used car market, as ive never bought a car from a dealer.

[GRAMPS SS]

I'M sure they would for most used car lots that i have been to get there cars at the auction yard...and you know thaty don't pay close to what they are asking...JMO

[Greg@GLD]

http://autos.yahoo.com/articles/autos_content_landing_pages/845/Car-Shopping-on-the-Offensive-8-Aggressive-Buying-Tactics

[GRAMPS SS]

gee why didn't i think of copying the whole page, instead of the good part....:confused...great idea Greg...:D

[MurphysLaw88GT]

Just did the last minute price decrease! didn't work but they have my #. if they want a sale bad enough they will consider. until then the escort soldiers on!

[1320PNY]

Just an adder to your list...

Dealerships get their "allocation" based on their ability to sell cars. If you find out when they get audited for their allocation, that is the month to deal. I bought an '08 Subaru from Don Jacobs in September. They get audited October 1st as their 2010 allocation was being decided. For every '08 they had on the lot, they got nicked 1 2010. So they were really pushing this car. I found it on the net in the morning and we went there.

Fortunately DJ is a great dealership and they skip the whole "dickering". I just said: "So when does that '08 have to be GONE?" My sales guy said they needed it off the lot or SOLD by month's end. I threw him my offer and gave my demands. They checked my credit and the deal was done.

The list posted above is TRUE. I also have a little trick to help:

1.) Go by yourself and "looky loo" and get a card.
2.) Come back with the wife and let HER drive it.
3.) Come back again by yourself and give the "wife approved" bid.
4.) Bring the wife in and let her give the list of MUSTS before you sign.

On average I paid between dealer invoice (which is padded) and MSRP. I have also gotten floor mats, oil changes, rotations, running boards, mudflaps, a hitch, roof rack, fog lights, leather interior, and a few other items added and kept my price or paid for materials (leather).

[GRAMPS SS]

that's another great add on..thanks for your added tip....this is a time to buy a car i feel if you think your income is stable to obtain it..they want to move the cars off there lot or they will sit with them or run them to auction....either way they get gone...i had heard once that if the car sits more then 120 days it starts to loose cash...maybe some sales guys can chime in...

[Voodoo Chick]

I wonder how these tactics would work if tried in reality.....anyone here ever try any in "real life?" If so, what happened?

[1320PNY]

I DID what I posted. I got my '06 Mustang GT for $27,005. I ordered it January 1st 2006 and picked it up April 1st, 2006. The car is a GT Deluxe with Leather, Bullitt Wheels, 3.55 Gears. I got a CDC body kit and a Hurst shifter installed by the dealer before I picked the car up. The cost was better then if I had bought the car and found the parts on eBay unpainted.

[Crawlin]

BWAHAHAHAHAHAHAHAHHAHAHAHAHHAHAHHA

The more you act like a ****, the higher your price will be. Guaranteed!

You may think the PRICE of the car is a hell of a deal, but we made money somewhere else. We always do. We always will.

The sooner people get that through their mind and come in with realistic expectations, the better off everyone will be. You'll get treated better. If you have a problem later on with a car, we will be more apt to help you out. Complaining does nothing but piss people off. Ultimatums never work. Try one on your kid and see what happens. Who wants to help someone that bitched and moaned throughout the whole process. It's called brain damage. As much as you THINK one sale would hurt a dealer, realize business to a dealership is like voting. Yeah your vote counts, but it'll never be THE ONE that swings something the other way.

Just a little scoop from "the other side" ;)

[Bobby "Big Daddy" Flay]

BWAHAHAHAHAHAHAHAHHAHAHAHAHHAHAHHA

The more you act like a ****, the higher your price will be. Guaranteed!

You may think the PRICE of the car is a hell of a deal, but we made money somewhere else. We always do. We always will.

The sooner people get that through their mind and come in with realistic expectations, the better off everyone will be. You'll get treated better. If you have a problem later on with a car, we will be more apt to help you out. Complaining does nothing but piss people off. Ultimatums never work. Try one on your kid and see what happens. Who wants to help someone that bitched and moaned throughout the whole process. It's called brain damage. As much as you THINK one sale would hurt a dealer, realize business to a dealership is like voting. Yeah your vote counts, but it'll never be THE ONE that swings something the other way.

Just a little scoop from "the other side" ;)

Damn you:rolf

[Prince Valiant]

Here's the tactic I used

1) Found a vehicle at a dealer that doesn't normally sell said vehicle...in this case, it was a full size truck @ a VW dealer. The reason this was important was because I knew not many were cross shopping this vehicle on the lot...and since it was a local trade in, they'd probably hold if for a while, then take it to auction.

2) I already had an idea of what the vehicle was going for at auction...in this case, ~ 9,500 dollars.

3) The auction thing was important...because I figured they worked the deal so that even the auction value would represent at least some gain for them, if not the break-even point.

4) I'm always in the middle of "looking", and always have other cars I've got to look at after this one...so I tell them I don't want to deal yet.

5)But I always say at the end of the test drive, or if the guy offers that they might be willing to deal, I always shoot for a LOW LOW offer, usually close to what the auction value might be.

I'm never an ass, I never act cocky like I'm going to get it...I just act like I really don't care if they say no to my offer.

SO, knowing this here's the story:

It was in 2001 that I bought my 1998 Dodge Ram SS/T...very attractive, clean truck with only 48,000 miles.

The price on the window was 15,995. They had the "SALE-THIS WEEKONLY" sticker at 12,500. I went in, looked at it and told them I liked it...but, had to go look at a Jeep cherokee that was less afterward.

As I gave him back the key, he allowed without me asking, that they'd be willing to negotiate that price (the MAJOR sale price of 12,500). Knowing that IF it was going at auction at ~ 9,500, that maybe if I offered 9,600, I might get it. If they said no, that's fine...I'd just continue my shopping as I originally planned.

Sure enough, he said, "Well, that's REALLY low...probably will get turned down, etc". "

"Fine...Like I said, I've got other cars to look at...but at THAT price, it's not even worth going to look at other cars"

Comes back with his manager and they said "Copngrats!" indicating that they agreed to 9,600. This was from a vehicle that had 15,995 on the sticker, and a "special" sale price of 12,500.

I've used this with most vehicles i've bought...I had a GC (not my green one) for a while....9995 on the window, 5,200 out the door. Jeep Cherokee at a ford dealership and with high mileage, 8995 on the window, 4,500 out the door (would sell it later for ~ same price with 40,000+ more miles).

The only time I didn't use this technique was buying the insight...I called 15 minutes after it was posted, and I was the third caller. Knowing that, I told the guy that barring anything major when I actually saw/drove it, I'd give him the asking price in cash.

[Karps TA]

I find the most helpful thing you have when buying a car is the ability to walk out the door. If they let you walk, then they obviously can't do the deal at what you're asking. You can always come back the next day, or even better wait for them to call you the next day. Especially with car sales being so tough now. You don't have to be a **** about it, just say sorry we can't get the deal done, please call me if anything changes and walk out the door.

[johnny--2k]

BWAHAHAHAHAHAHAHAHHAHAHAHAHHAHAHHA

The more you act like a ****, the higher your price will be. Guaranteed!

You may think the PRICE of the car is a hell of a deal, but we made money somewhere else. We always do. We always will.

The sooner people get that through their mind and come in with realistic expectations, the better off everyone will be. You'll get treated better. If you have a problem later on with a car, we will be more apt to help you out. Complaining does nothing but piss people off. Ultimatums never work. Try one on your kid and see what happens. Who wants to help someone that bitched and moaned throughout the whole process. It's called brain damage. As much as you THINK one sale would hurt a dealer, realize business to a dealership is like voting. Yeah your vote counts, but it'll never be THE ONE that swings something the other way.

Just a little scoop from "the other side" ;)

I'm gonna have to agree with Chris on this one. There is ALWAYS money somewhere in the deal, whether you know it or not, there is.

As for the invoice being "Padded" thats really what pays for the clean up, PDI, salespersons commission, full tank of gas for the new cars, etc....

[buttersgt350]

the average price for a used car is about $5000 over what they got into it. before buying a new car always check the manufacturers website because they will have the special finance rates or lease rates for whatever car your looking at. the dealer wont tell you you can get it at 3.9% because if you dont ask what the % rate is they will charge you whatever and make money on it. most people only care about monthly payment and will often overlook their trade-in value and other factors of buying a car. the banks are a little tighter right now and most banks will require some sort of a down payment. some dealerships will not sell a car for less than invoice price. some will because they know if they sell x amount of cars each month they will get a kick back from the manufacturer. when purchasing the protector packages or environmental packages the dealership usually pays under $500 for the package, so dont let them charge you $1500. remember the more cars a dealership sells the more money they make so they will work with you.

[Crawlin]

sure, that is the price ADVERTISED over what we got it for. Average used car profit across the board at every dealership in the USA will be about $1200. If you can attain that, your job is safe.

Think of it this way though....

Auction - Bought car for $12,000
Auction Fee - $300
Pack - $600
Certified Inspection Cost - $125
Certified Cost - $405
Setup/Inspection - $800 (and it could go WAAAY up from there)
+ any random general journal fees they want to add for a dent removal of $125 or whatever.

So even without that, the "auction price" of $12,000, we'll OWN the car on the lot for $14,230.

That's a REALISTIC Dodge/Chrysler/Jeep certified vehicle gross log. It's what I look at every day.

Sometimes, it may be an older car. So in P.V.'s case, thy might have just wanted to get rid of it and take the loss so it doesn't sit any longer. Cost more to keep insuring it on the lot especially if P.V. was the first person in a couple months to even come look at the car(and we do keep track of that stuff)

As for the rate, yes that can happen. We can't just make it whatever we want. We have a "buy rate" that we get, and there is a maximum mark up on that rate. We get paid a percentage of the difference from over the course of the loan's "finance charge".

Ford Motor Car Credit used to allow people to mark it up to whatever they could get the customer to take. And on a $30,000 finance amount, only 2pts for 72 months might pay you $2200 for the finance department :)

So like I said, realize there will be money made somewhere, treat the salesperson how you'd like to be treated if someone came into YOUR work to work directly with you. If he's acting like an ass, by ALL MEANS, walk right out the door.

Flip side, even if you do your own outside financing cause you don't want to get taken advantage of in the finance department, well realize we are more often than not still able to beat your rate AND still make money. At that point, it's a no loss situation. Just do your research on what your bank/credit union is giving.

[deuceWI]

I found it easiest to talk about the Out The Door price only. That includes car + any upgrades + maintenance packages + dealer prep. + stupid fees + tax + title + anything else they want to throw in.

It makes it much simpler when shopping around, and if a dealer wants creative with the price, I don't care, I just want to see the bottom line number. Get the financing people involved early too, I don't want to any extra BS brought up after I agree on a price.

This made my recent purchase in 08 pleasant and headache free.