Secrets to car buying anyone?

[coachgrd]

Anyone have any secrets to getting the best deal possible off a car dealer? I'd like to make the experience as pleasant as possible, if that can be done. I've selected the car, make & model and have the invoice price from http://www.kbb.com Any suggestions as to how I make my first move with the salesman/dealer?

Thanks,
coachgrd

 

[Gatorboy]

Email your dealer's Internet Sales Guy. You should be able to buy that car for $100 over invoice or less. The deal can be done before you even set foot on the dealership property.

 

[bczoom]

Coachgrd,

Also check edmunds.com & nadaguide.com.
I also get a copy of the actual invoice from the salesman.

I don't like the "going back and forth" on negotiating with a dealer. I give them 1 shot at it. I tell the salesman that he's to go to whomever (usually the sales mgr.) and come back with their best price as it is their only shot at my business.

I let them know if I like the price, I'll buy... if not, I walk. Have the $ amount in your head (or on paper) before they come back. If they don't match/beat it.... walk. Don't give them a second chance. I don't even tell them my amount.

If they do match/meet the price you have in mind now you're ready to buy. At this point I go for the extras. Have some small options that you want thrown in (mud flaps, floor mats, bed liner for a truck... whatever). Tell them you'll buy today if they throw in those options. Normally, you'll get the small ones but not everything you try to throw in.

Like gatorboy said, invoice +/- about $100 is generally where you should be. They do get a "dealer holdback" so don't let them try to tell you they're not making any money. Also be aware of any mfgrs rebates or discounts as well. Last truck I bought came in thousands below invoice due to rebates.

Good luck.
Brian

PS. Are you going to mention what car you're looking at?

 

[_RaT_]

After you get your quote, mention your still waiting for a quote from this guy. He is the largest dealer in the USA. Dave Smith Motors

 

[Panache]

I got the address of every dealer with in 100 mi. One Saturday night I faxed a request for quote to the "Fleet Manager" with exactly what I wanted in a vehicle requesting a total price except tax and title. Fleet managers are salaried. This was for an Ordered vehicle. Best fax back was $250 over KBB invoice. about a week later my local dealer called, said he knew what I was doing and wanted to know my best price. I told him $250. He said they like to get $500 but to get this sale he would go $200. I told him to order it. It was ordered the next day. 6 weeks later it came in. I went down to pick it up. That was the first time I was in the dealers office. I was supprised at the price quote spead I recieved, as much as $2500 over invoice, and this was from a "low overhead dealer". Remember to ask if they have quota available also. The price is no good if they are not allowed to actually order one.

 

[mathey]

I agree with Panache above...

You first need to decide the exact vehicle you want including every option and the color(s). You need to determine if you will have a trade, and how much that's worth. Determine if you will finance through them or if you'll be paying cash (or financing through the bank).

I went to the Honda website and got the email address for every Honda dealer within about 50 miles. I then emailed all of them and explained the car I wanted, the colors I would accept, that I had no trade and I was a cash buyer, and ready to buy now. I explained that what they emailed me back should be considered their BAFO.

About half actually replied, some were well above MSRP, some at MSRP and some were well below MSRP (approcahing invoice). I should state that this was a new model vehicle that was in high demand, which explained the MSRP guys. I guess about 3 were pretty close, so I emailed them back and told them the offers I had recieved (i.e. "lowest is $400 over invoice). Turns out my local dealer said he would beat any other offer by $200, so I chose him...ended up about $200 over invoice and he was close by (one of the others was about 1 hour away).

I went to the dealership once for about 5 minutes to put down a deposit, and then again for about 30 minutes to pick it up a month later. Of course, if there was someway to avoid the miserable process of dealing with the extwarr/paint/scotchgard guy, I'd have done that too...just keep saying "NO".

All in all, it was a painless process...the actual shopping via email took about a week, but all from the comfort of home!

 

[HammerFour]

Don't let them pull you into the "monthly payment" discussion.

Have a number ready on what you will pay for the vehicle and a number on what you will take for your trade ( if you have one ).

It is best not to have a trade, try and sell it yourself thru autotrader.com or local classifieds, you will get more for it.

Have your own financing prearranged so you can negotiate as a cash buyer if you aren't paying cash.

Plan ahead what "extra" options you want before you see the finance guy, he is paid a commission to sell you stuff like scotchguard, undercoating, glass etching, extended warranties. The previous poster had it correct, just keep saying no.

Most new cars come with warranties that last longer than most folks realize anyhow, if a vehicle is questionable enough to make you want an extended warranty, you may want to rethink buying it at all. That said, I almost never buy a new vehicle as I hate to take that huge depreciation hit that the first person to own the car takes, like 20% in the first year.
But we did buy a brand new Dodge diesel 3/4 ton truck decked out with all the options in 2003, we plan to keep that truck as long as possible anyhow. So far its been great. =)

 

[Jagmandave]

I was in the "car biz" for about 30 years, and I'm always amazed that people think a dealer can stay in business by selling cars at $100 over invoice. If they sold 100 cars a month at this rate they'd make $10,000 a month - wouldn't even pay the flooring costs (interest on the new cars sitting on the lot) let alone all the other expenses - now you know why shop labor is approaching $100 an hour................
Everybody says I'll pay $100 over, let them make their money on the "other guy", but who exactly is the other guy?
I'm all for getting a "deal", just like anyone else, but does $300 really matter on a $30,000 + purchase? I don't work for free, do you? Let these guys make a little money and they'll still be there in a few years to take care of you. Strangle them hard enough, and your "deals" will go away, along with the dealer. The lowest price is not always the best deal..........
(end of editorial comments - off soapbox now /forums/images/graemlins/smirk.gif)

 

[Gatorboy]

<font color="blue"> I'm always amazed that people think a dealer can stay in business by selling cars at $100 over invoice. If they sold 100 cars a month at this rate they'd make $10,000 a month </font>

$100 + 3% holdback. $30,000 car would net $1000 (not $100). Let's not even get into how much they make on trade-ins.

 

[BB_TX]

As Gatorboy stated, the dealer makes money from the <font color="blue"> holdback </font> even if they sell at invoice. When I bought my truck, the fleet salesman offered anything on the lot at invoice before I even had a chance to say anything. /forums/images/graemlins/laugh.gif
Now I will disagree with the $100 over invoice. It is all supply and demand. Some vehicles you can get at invoice or even below. Some very popular/low supply models you will not get anywhere near invoice. You don't say what you are wanting to buy. But you are on the right track. Don't talk price until you find exactly what you want. Then tell the salesman you will pay $100 over invoice (or whatever you feel you want to pay). And let him know that you have the invoice pricing. That puts him on the defensive right away and puts you in the drivers seat (so to speak).
Rebates - be sure to ask about rebates and incentives. Sometimes the dealer will tell all. Sometimes they will not. There are a lot of unadvertised rebates available. For example when I bought my truck Ford was advertising a $1500 rebate. However, the salesman pulled a long list up on his computer and asked if I might qualify for any of them. Turned out I got another $500 rebate because I had totaled my old Ford truck and was buying a new one. I got another $500 rebate because my wife and I own a small business. /forums/images/graemlins/grin.gif There were many more that I did not qualify for but you may. This where a good salesman helps.