how do you haggle car prices

[yorketransport]

Dealers will get a real quote from a bank to finance you and will come back and look you in the eye and tell you  rate that is higher. If you bite, they will split the difference over the life of the loan with the bank. Say they get a quote for 6%. If they can sell you on 8% the difference is 2 %. So the bank and the dealer each get 1% interest over the life of the loan. On a $30,000 loan over 6 years, that is a big chunk of money, over $1,500 that you are only paying because they lied to you and you believed them.

  I won't touch any vehicle loan with interest above 3%. New or used, cars, trucks, boats, doesn't matter. First person to throw 6% at me is going to get laughed at as I walk out!

My advice, never give a monthly payment; they'll just adjust the terms to match your payment. Never give a price range; they'll just push you to the upper limit or beyond. Always negotiate the price of the vehicle and the value of your trade separately. The two are not connected, but rather two separate transactions.

My favorite trick is to buy the vehicle at dealer A from dealer B's lot. With the last commercial truck I bought, Dealer B had the truck I wanted, but I didn't like the salesman. He didn't know the product and he didn't take me serious when I walked in there, but knew about a special rebate that my company qualified for. Dealer A knew his stuff and wanted the sale, but was $8K off on the price. I told him that I would rather buy the truck from him, but Dealer B had the vehicle and the price right. They ended up doing a dealer to dealer trade for the truck I wanted. It took 2 days, but I got the truck I wanted for $27K instead of the $40K asking price, and I got it from the dealer that I liked.

Andrew

[follow maggie]

Treat it like a business transaction, because that's what it is. Too many people get emotionally invested in a new vehicle and beat themselves on it. Be ready to walk away like others have said. I like to pay cash and I always get a good price. I pay a fair price, the dealer makes some money and the sales person makes some commission. Being fair to the sales person also speeds up the process- when I bought my f-150 it took about 90 minutes

[Taco280AI]

Sometimes you can get more $$$ off if you finance. My trade was worth more than the car I just bought, but by having them cut me a check for half the value of the truck and putting the other half toward the car and financing the rest, I got another $500 off for the military discount. Only got it through financing. Then can just pay it off when I feel like it and keep the other $500

[jackmaster]

Sometimes you can get more $$$ off if you finance. My trade was worth more than the car I just bought, but by having them cut me a check for half the value of the truck and putting the other half toward the car and financing the rest, I got another $500 off for the military discount. Only got it through financing. Then can just pay it off when I feel like it and keep the other $500

congrats taco and good luck in germany.... stay safe up there 

[magnanimous_j]

Treat it like a business transaction, because that's what it is. Too many people get emotionally invested in a new vehicle and beat themselves on it. Be ready to walk away like others have said. I like to pay cash and I always get a good price. I pay a fair price, the dealer makes some money and the sales person makes some commission. Being fair to the sales person also speeds up the process- when I bought my f-150 it took about 90 minutes

This is the truth. People like to make it one big confrontation, and all that does is slow everything down.

Buying a new car is super easy, unless it's a brand new, really popular or rare car, just do this. Ask for the invoice, subtract any applicable incentives off of the invoice (not msrp), then add 300 dollars and offer that. They'll come back higher and then you settle somewhere between 400-500 over invoice (if the car is under 30 grand, or 5-1000 over if the car is more than 30,) minus rebates and there you go. Then if everything goes smoothly, slip the salesman a hundred in cash when no one is looking and he'll take care of you for life.

People who tipped me got all sorts of perks. Extra floormats, maybe a paint touch up pen, their car magically ended up at the front of the line for finance or detailing on a busy Saturday, etc.

[TommyH]

Tag. Good Info here.

[Igottanewknee]

If you got the cash, negotiate as if your going to finance if, get the best deal, then tell them you'll take it and you've decide to pay cash.

[JohnVH]

Ive been dealing a bunch with them lately to get a couple new to me, used rigs.. they wont deal at all, cash or not, they don't budge on their prices a dollar, and low ball me on mine.  Getting tired of walking out on them.  They just are not very hungry these days for some reason.

[xxlx7]

Decline any "Test Drives" they may offer, especially if it involves them photo copying your driver's license.  Their back room associate will immediately be performing a sleazy credit check and will put you at a serious bargaining disadvantage.

I don't know what dealers your going to, but I've been in sales/service since 2005 and have never even heard of this. The copying of a drivers license onto a demo permit is for insurance liability only because if you get in an accident and you are driving one of my vehicles, you are to be held responsible.

hiding the trade- DON'T DO THIS- reason for it, its not that we hate it, but sometimes customers want more money than their vehicle is worth, and we will take profit off of the sale price of the vehicle and add it to the value of the trade to get the number to where you need for banking purposes. Most people who come in are upside down in their loan to value ratio on their current vehicle.

Internet is a great resource, do your research, like most have said, see what comparable vehicles are going for price wise and how they are equipped. I've sold thousands of vehicles, and I've always found that customers are happiest when they understand the vehicle purchasing process, clarity of a process is a must with any sales person I talk to, if I see anything fishy, I would walk the other way, they will "turn" you to either another sales guy or their floor manager. Stick to your guns on a price you want, sometimes you won't be able to get there, you need to realize they are a business too, everyone needs to make a profit, no they don't need to make 10000, but they need to make something.

Certified vehicles are a great purchase for used vehicles, Toyota offers a warranty of 7 years or 100000 miles from original date of purchase, and durring my service process, they have to meet certain standards on tire tread, brakes and lots of other stuff to be certified.

Everyone knows dealers ask the world, its just like a consumer offering peanuts, dealers can always go down, but never back up, and consumers can always go up, but never back down. Be honest with your sales guy, and if you feel you have negotiated a deal your happy with, go for it.

I've had customers pay me profits on deals when I told them they can get it for less because the process was clear and fun, look for that. I have customers that come see me in the service department where i work that i sold car's and trucks to in 2005 because they had such a good experience, enjoy buying a new to you rig, they are big purchases and should be a great enjoyable time!!!

[aaronoto]

Ive been dealing a bunch with them lately to get a couple new to me, used rigs.. they wont deal at all, cash or not, they don't budge on their prices a dollar, and low ball me on mine.  Getting tired of walking out on them.  They just are not very hungry these days for some reason.

I've noticed the same and I've purchased two new cars in the last 3 years and traded in a car on one of those deals.  I think some of it depends on what brand you're looking at, seems like Toyota and Honda are always less willing to wheel and deal than the other brands.  While the new car market seems to be turning around, used cars are in high demand and dealerships are paying good money for them.  I traded in my 2009 Toyota Tacoma with over 100,000 miles when I bought my Tundra and they gave me $20,000 for it, and no I didn't get ripped off on the Tundra either.  They listed my Tacoma for about $2,000 over what they paid me and it wasn't around for long.

[TommyH]

I referenced this thread the other day to someone asking car buying questions.

Had to re-read and bring this thread back since I will be looking to -not get ripped off on a "new to me" used car. Lots of info in here that may help save $$$$. Trying to learn as much as possible before hand.