And this is why the Dealership Model needs to change.

[TiGeo]

If this was capitalism I would agree with you - but its not. People are buying $100K SUV's due to easy credit - created by easy money policy and federal overspending - there is too much money sloshing around in the system so anyone dumb enough to ask can get it.

Its the same as when the government took over the student loan program. As soon as unsophisticated borrowers could get as much money as they asked for, tuition skyrocketed.

In capitalism there is the concept of excess profits - the point being when people are making this much money a efficient market would flood the market with new product to make money while they can. But there not - there making too much money as it is.

So it affects everyone. Yes, I am not buying a vehicle at these prices. Fine. But I have now been excluded from the market because the market is broken.

Not capitalism.

Yeah basically same situation as the home mortgage drama in the late 2000s.

 

[dishdude]

Let's just say I know a little about negotiating. I walk into the dealership with the deal in hand.

Exactly this. Never leave your house without an OTD quote from the dealer you're visiting.

 

[TiGeo]

Exactly this. Never leave your house without an OTD quote from the dealer you're visiting.

Always.

 

[JeffKeryk]

Exactly this. Never leave your house without an OTD quote from the dealer you're visiting.

Forgot to say I tell them exactly what the other dealerships are quoting me.
Let them negotiate against each other if they want my business.
If they backslide, out the door I go.

 

[supton]

Exactly this. Never leave your house without an OTD quote from the dealer you're visiting.

So how do you get test drives in? Do you negotiate a price before omitting to looking at something?

 

[dishdude]

So how do you get test drives in? Do you negotiate a price before omitting to looking at something?

I don't talk price until I've decided on what I'm buying. Test driving is one phase, once I've decided on what I want I look for inventory at local dealers, if one has what I'm looking for I click on the request price and fill out the form with my info using a throwaway email and Google Voice number. About half the time I get an easy to work with dealer that will provide pricing, the other half just try to get you to come in and won't provide pricing. It's a good way to weed out the dealers that will be difficult to deal with in person.

The dealers that have provided pricing have always honored it and have been easy to work with. They'll still try and sell add-ons in the F&I office, but I've always paid the price I was quoted over email or text.

I've never engaged in negotiating between dealers, as long as I get a reasonable discount off MSRP and no silly add-ons like paint sealant or nitrogen in the tires, I'm happy. It's rare for me to find two dealers with cars that are the color I want, with the options I want and the powertrain I'm looking for anyway.