Originally Posted By: thescreensavers
I'm about to put a deposit down on a new car and the talk about pricing is going to stress me out, I hope its easy process.
I know all the fees they have to charge ..etc hopefully I can use logic and have an easy no games discussion to get the price I want.
The process is usually pretty straightforward if you do a little homework and follow some simple guidelines.
1) Know exactly what you want and what you are willing to pay for it. If you walk in the door hoping to start from whatever the dealer offers, you will pay more. Be aware of any incentives being offered on the model. It's not a bad idea to write all this down on a spreadsheet and have it available for reference. I typically give an out-the-door price, less tax. Have title, tags and documentation fees included in the OTD price. That helps prevent getting hit with outrageous fees after you think you wrote a good deal.
2) Make sure that the price in your head is grounded in reality. There are enough tools online to have a pretty good idea of what range your car sells in. If you come in and offer 20% below the lowest reported price, you will not be taken seriously. Also understand that the higher the demand for the particular model you want, the less of a discount you are going to get. You'll pay significantly more for an Accord or Camry than you will for a Chrysler 200 even if the sticker prices are similar. This is reality.
3) Make one offer, slightly below what you are willing to pay. Tell the salesman that this is the price you are willing to pay and if you can't get it for that you will thank him for his time and walk away. He will probably come back with something higher. If that higher number is at or below the price you originally intended to pay, buy the car. If not, counter with your set price and stick. Give him one more chance to "take it to his manager" and thank him for his time and walk out the door if he doesn't meet your price.
4) Be willing to walk away. Always buy a new car before you actually need it. If you had to catch a cab to the dealership, you're at a real disadvantage.
5) Be honest and straightforward. A good salesperson can spot a BSer a mile off. For example, don't lie and say you have a better price from another dealer. You just make yourself look stupid and ensure that when you are telling the truth you won't be believed.
6) Buy something that is on the lot. You may have to be a little flexible on equipment,color, etc.
7) Investigate and set up financing before you visit the dealer (if you won't be paying cash.) This way you will have a good benchmark for what makes a good deal. If the dealer can beat it, go with him. If not, use whatever you have set up. Often the dealer can do better given manufacturer-owned financing arms that offer subvented rates.
8) Once you get the papers signed and end up with the financing guy, just say no to anything you don't want. It's really that simple and I don't understand why so many people report being "pressured" into buying extended warranties, paint sealant and other stuff they say they didn't want. Just say no. If you want something, you can negotiate on that too.
Some will say to contact the internet sales manager directly and that might be a good way to go if you are really not up to negotiating. Note that I did this with 3 VW dealerships before I bought my newest car and got the price I wanted only from a face-to-face negotiation.
For all the bad, scary car dealerships there are plenty of dishonest buyers. Start the negotiation off by showing you are upfront, honest and serious about buying a car. If you show them right off the bat that you will not tolerate or offer and shenanigans, most salespeople will get right down to business.
Also, make sure you actually allow the dealer to make some kind of reasonable profit. This is probably the biggest mistake people make. They want to pay what the dealer paid for the car (or less.) They have decided that a fair price does not have to be fair for the seller. It reminds me of when people show up on Pawn Stars with something and that Mutley-laughing idiot calls in his "buddy" to appraise something. The appraisal is 10 grand and the dope looking to pawn it says, "You heard him, I want 10 grand!" Yeah, sure...
I've had some bad experiences at dealerships in the past, but all my purchases have been fine. I won't deal with sleazeballs so I move on when I encounter them. I am fair but firm with my offers and have prevailed most of the time.
The last bit of advice I have for you is to read and understand the contract before you sign it. Some dealers have unreasonable fees or other objectionable items listed. Only sign the contract if it accurately lists what you agreed to. Make sure certain fees already negotiated have not snuck back in at full price. Have them rewrite it if necessary. Don't be afraid to look stupid by questioning something you don't understand.
I would also caution you against taking anecdotal stories to heart. When someone at work tells you their cousin bought the exact same car you are looking at for thousands less that your research shows, take it with a grain of salt. I had someone tell me his sister bought the exact same VW Jetta I bought my wife for $2,000 less than I paid. He swore up and down it was the same car, just white instead of grey. For fun I had him call her. Her car was two years older, a base model vs my wife's SEL and she bought it USED. He did get the color right. If you buy the car at a price that is right for you, it really doesn't matter what other people did or didn't pay. It feels nice to think you got the car cheaper than everyone else, but over the life of a car a grand either way is not really worth losing sleep over. If you were happy with the price when you bought it, you got a good deal.
Good luck and let us know how you do.
