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I walk in and tell them "I'm just looking for right now"....because if they know you're desperate they know they have you in control already.
I then tell them what I want and what I'm willing to pay. They will either fulfill my requests or they wont.
If they say they can't/won't, that's when I say "Ok, thanks anyways" and start heading toward the door. The last thing any salesman wants to see. Usually by then they start changing their tune to my likings. It may take a few times because they want to be in control of you.
The rule of thumb when dealing with salesmen is "you are in full control". You just have to let them know up front in a very tactful way, that you know how much the car is worth, you know how much you can afford and there's no way in hell they're going to change your mind. And also letting them know you don't need it today tells them they're going to have to work harder for you.
They can read you like a book and they know in a few short seconds if you're naive or if you've got your game down to a science.
"Let the dog wag the tail, not the tail wag the dog."
I do a lot of research online. I find out what the dealer pays and then add a few hundred for their profit. I then email every dealer within 100 miles with what I am looking for and let the bidding begin. I bought my wife's then highly desired and hard to find car for invoice at a dealer 100 miles away. Every other dealer wanted a thousands more. My car was bought about 20 miles away and I saved $$$ (I do take into account the cost of traveling so far) but if I can save a few hundred, why not. A few good sites for research and info are carbuyingtips.com and Edmunds.com. Jay
This is what we do...
Let the dealerships compete.
Location: Just East of the Southern Portion of the Western Part of PA
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I have had alot of experience with car dealers, and here is what I have found:
Here is the best cast scenario for car dealers:
1) They sell you a car the same day and time that you arrive - they don't want you to leave because they know their odds of making a sale go down significantly once you leave the lot. You are more emotionally vulnerable on your first visit, and they know that you will be more prepared once you leave the lot and do some research.
2) They sell you a car that they already have in stock. This keeps thier overhead costs at a minimum and opens up room on their lot.
3) They discuss the price of the car only in terms of your monthly payment. This is why it can sometimes be difficult to get the bottom line price. How many times have you asked for the price of a car and you get this as your answer:
"Well, tell me what you are looking to spend per month and we will see what we can get you into".
They know that they can make the monthly payment do pretty much whatever you want it to do by manipulating the terms of the financing. This helps them sell the car for the highest price while still making you think that you got a good deal.
4) They want provide the financing. This allows addtional profits on loan interest and also allows the dealer to use the methods from item #3 above.
5) They want to provide additional ad-ons, such as undercoat treatments, additional warranty items, paint protection,maintenance packages, ect. This allows the dealer to reap additional profits from you after the car is sold.
Eliminating as many of these tactics as possible will help you get the edge on the dealers.
Basically, the keys are reasearch, patience, and the ability to keep a level head during the car buying experience.
I look up the invoice online, show it to them while on the lot, and then just leave if they won't give me a price that's at or maybe only a percent or two over. It's funny...the minute I turn and start walking towards my car, I hear a lot of "wait wait wait wait!"
Also, never tell them that you're paying cash (so they will lower the price thinking they can stick you with crap-ass financing), and never tell 'em you're not trading in your car to them (so they will lower price thinking they can stiff you on your trade).
Always make them tell you the total price of the car - I refuse to deal with any dealer who keeps talking about a monthly payment. That is skeevy and underhanded!
Good grief, it's threads like this that make me so happy I work with high-line cars.
Whats the difference? Are you inferring that wealthy people don't haggle?... I come across more stingy and very particular wealthy people than any other.
Whats the difference? Are you inferring that wealthy people don't haggle?... I come across more stingy and very particular wealthy people than any other.
The difference being it doesn't really matter if you know what the invoice is, blah blah blah. You just know how much money we are making on you in that case.
Also, wealthy people tend to look more at the overall picture. The car may cost more at the outset, but some of the perks such as free pick-up and delivery for service, things like that, may be worth it to someone who is incredibly busy. They also tend to be more realistic when it comes to profit and supply & demand. And yes, they may be more particular, but they are willing to pay to have a place that caters to their peculiarities.
Non-luxury stores tend to be more focused purely on monthly payment, sometimes on selling price. Whatever else they may get with the car doesn't matter.
I used to work in the business (highlines). I sold, financed, and wrote service. I hated selling cars. F'in hated it. I can sell, but don't get me started... Anyway I've written some pretty lengthy drafts on the car buying process for a few people. I've only got time for a short sypnopsis:
As the Texans would say, don't plant your crops before you build your fence. Remember that they negotiate every day and you don't, so be on your guard. You want to hold as many cards as you can; don't reveal them all before they win the hand. You have to hold your ground in the game. How?
Do your research beforehand to find the invoice price (if buying new) and the average sale price of the model you want. I always suggest Edmunds. IMO, I also suggest securing financing through your credit union. Unless a manufacturer is offering a super sweet rate, your CU should get you as good as or better, and is much less likely to bash you over the head with crap you don't need, like extended warranties or life insurance on your car loan. You now have another power of negotiation over them - you don't have to screw around with talking about your payments.
At the dealership, don't talk about anything monetarily except the purchase price of the car you will buy. Not monthly payments, not financing, not your trade in. When they ask, just politely say you are only interested in the price of the car you want to buy. If they get you talking about monthly payments, or how much you want on your trade, that's when they get you. That's when they break out the four squares. The four squares is a salesman’s best friend. It is your worst enemy. Google it. 4 squares is one good reason they don't want to negotiate over the phone, they lose this power of confusion.
So the Cliffs Notes is: Research and negotiate only the purchase price of the car. If you are serious about buying, tell them. Don't be smug and walk in with your Edmunds invoice printout taped to your forehead. Just know your numbers and start your bidding low. They will start high. Meet in the middle and don't get hung up over a lousy hundred bucks or whatever. Your time is worth money, too. Don't be afraid to walk away.
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