How do you haggle with car salesman ???

[leeland]

Hello
well me and my fiancee are looking into purchasing a new vehichle (a SUV) and i hate trying to haggle with car salesman. the last time i did go and look at a used car the guy was a complete ass hat.

So i would like some advice or some comments to get an idea what kinda angle i should use. we are looking at a variety of mid sized SUV's ( Xterra, Jeep, Envoy...)

For example the list price on a new Xterra SE S/C at a local dealer is $29,250 when i am looking at reviews on the net the price that they suggest is around 26,000 to 27,000...

now take into account that i have reviewed each vehicle and know the pro's and con's of each, also have a basic price that they are going for ?

so how do you start the haggling process to get the price i want to try to get without being Rude or a friggin push over ?


thanks for any insight

leeland

p.s. any clarification needed just ask

 

[Sluggo]

Why are you going to buy a planet killing SUV?

Do you hate baby seals as well?

 

[Dudd]

I don't know much about car sales, but I do know this: don't worry about being rude. The car salesmen are looking to get every cent from you as possible, you should be trying to get the same from them. You are not there to make friends, so don't be afraid to push things a little farther than in a normal interaction.

 

[AgaBoogaBoo]

Talk to him, get a few quotes, when he says no say: How about I give you the finger and umm... I can't think of anything good right now.

 

[Lvis]

1. You need to be willing to invest a lot of time.

2. Shop around.

3. Shop some more.

4. Waste lots and lots of the salesman's time.

5. Ask them beat another dealers price. ( you may have to make this number up, they hate to lose your business to someone else.)

6. Don't assume the online/book prices you see are really accurate. Many are off by a lot.

7. Never be afraid to walk out. They hate to see you walk out, especially after wasting a bunch of their time.

In short, just know what your price will be, and stick with it. It takes a bunch of time, to get the best deal. The more time you spend with the sales geek, the better. They will want to sell, just to make some money, after all the time they invested. It also helps to shop at the start and end of the month.

 

[RossMAN]

I don't

I prefer to buy new cars BELOW invoice using a loss leader ad from the Saturday morning newspaper

Price is printed on the paper, VIN is listed, year/make/model is right there, assuming it hasn't already been sold - it's mine and no haggling required.

 

[OREOSpeedwagon]

Originally posted by: Sluggo
Why are you going to buy a planet killing SUV?

Do you hate baby seals as well?

Text

 

[Zrom999]

Insult his intelligence as much as possible, threats work nicely, make him recognize your superiority, explain to him complex economic terms he won't understand, cite laws that don't exist, let him know you know someone in power etc.

 

[woodie1]

I don't haggle. check out the type of vehicle you want in person and on the net. Look up the invoice price. Decide how much you want to pay. Have him/her fill out a sales order at your price so they know you are serious. If they say no walk out. They have your phone number and will call you in a day or two. It doesn't hurt to make an offer lower than you are willing to pay so you can haggle a little and still get your price.

EDIT: Forgot to mention, do this in the last week of the month. Everyone at the dealership will have their eye on their bonuses for the month and will work harder to make the sale.

 

[Vic]

Go to Edmunds (should be direct link to SUV in question but may have to enter ZIP code) and select/option out the right model. Print that out. Call various local car dealerships (actually going on the lot is ONLY for test driving), talk with some reps politely and (after a little small talk and discussion about the vehicle in question) inform them that you're only planning on paying something reasonably lower than the "TMV" price (edit: don't mention Edmunds or the TMV unless things really break down and you want to put the salesperson to the wall).

Actual haggling will now occur. He will say something to to the effect of how that price is ridiculous and he's selling them all day every day for some higher price, etc. Stick to your guns and bring up how you are talking with other dealers in the area who said they would do it for $<insert a price that is just slightly higher than the one you told this salesperson that you wanted it for, most likely that "TMV" price> but you were calling to see if his dealership (don't mention him, mention the dealership) could beat that. Do that even if this is the very first salesperson you talk to. If things go well, you will end up buying the car right about at that "slightly higher" price (roughly the "TMV" price, which was your original goal). If things don't go well, if he sticks to his guns, then he loses the sale and you call up another dealership - rinse and repeat until success.

Success on the phone isn't the end of it though. Generally after you and a salesperson have settled on a price over the phone, now you have to deal with the details. Credit app should be over the phone and fax (or email). In getting the best deal, it is extremely preferable that you have excellent credit qualifications. Salespeople do not like to give their best deals to people with bruised credit or with high debt ratios. It makes their job of getting you in the car harder and consequently they feel that they deserve a bigger commission for their work. When you're getting a great deal on a big ticket item, and everyone involved in the transaction knows it, it is very important to be polite, friendly, and helpful to those getting you that great deal.

Finally, a time will be arranged to sign the paperwork and take delivery of the vehicle. Here it is very important to make sure that absolutely everything is as you and the salesperson originally discussed - right down to the penny, color of the vehicle, and the smallest option. All should be in order. Any discrepancy at all should either be quickly rectified or you should get up and walk right out. Hopefully that doesn't happen and all is well.
And... congrats, you got a new car.

 

[leeland]

Originally posted by: woodie1
I don't haggle. check out the type of vehicle you want in person and on the net. Look up the invoice price. Decide how much you want to pay. Have him/her fill out a sales order at your price so they know you are serious. If they say no walk out. They have your phone number and will call you in a day or two. It doesn't hurt to make an offer lower than you are willing to pay so you can haggle a little and still get your price.

EDIT: Forgot to mention, do this in the last week of the month. Everyone at the dealership will have their eye on their bonuses for the month and will work harder to make the sale.

You make an excellent point....so let me give you a little senerio...


lets say you are trying to by car (X) which is around 30,000 listed at the dealership...now when you go and look up the invoice price is
MSRP Invoice
Base: $27,999 $25,748


how would you justify your price when they challenge you back with a higher price...by the way this is the price for the Xterra SE S/C. would you offer like 24,500 when the sticker price is 30,000 so they can come back with a higher price ???


also a related question what is the MSRP stand for ???


sorry for the ignorant questions, i like the hear how other people deal with this situation



leeland

 

[leeland]

Originally posted by: OREOSpeedwagon

Originally posted by: Sluggo
Why are you going to buy a planet killing SUV?

Do you hate baby seals as well?

Text

an excellent pic !!!

 

[isekii]

Just fax like 4-5 dealerships within your area.. or even if it's out of the area a bit.

In the fax.. include the type of car you want and the price you want to pay.

You'll definitely receive a call regarding the fax. They want the sale, they aren't just gonna ignore you.

 

[flxnimprtmscl]

Originally posted by: woodie1
I don't haggle. check out the type of vehicle you want in person and on the net. Look up the invoice price. Decide how much you want to pay. Have him/her fill out a sales order at your price so they know you are serious. If they say no walk out. They have your phone number and will call you in a day or two. It doesn't hurt to make an offer lower than you are willing to pay so you can haggle a little and still get your price.

EDIT: Forgot to mention, do this in the last week of the month. Everyone at the dealership will have their eye on their bonuses for the month and will work harder to make the sale.

Exactly what I do to. Decide what you wan't to pay, and if they aren't willing to do it that's fine. Thank them for their time and leave. They'll give you a call within a few days.

 

[FoBoT]

i did it the easy way, i got my brother and brother in law and dad to take my wife and do all that crap, after they found the van she liked, they did all the haggling and all i had to do was write the check , it was sweet

i gave my brother and brother in law a computer in payment, it was worth it

 

[Vic]

Originally posted by: RossMAN
I don't

I prefer to buy new cars BELOW invoice using a loss leader ad from the Saturday morning newspaper

Price is printed on the paper, VIN is listed, year/make/model is right there, assuming it hasn't already been sold - it's mine and no haggling required.

VERY effective when you're looking for the rock-bottom lowest price but you're not too terribly concerned about color/options, etc.

MSRP = Manufacturer's Suggested Retail Price

The best way to justify your lower price when haggling against a higher price is to imply that you get could the product at your price (or thereabouts) from their competitor.

That price of $24,500 is way too low. It's ~$2,500 under the dealer's invoice cost. They would lose considerable money on the deal (it's less than their holdback). If you told a salesperson that another dealership would give you that price, they'd tell you to take it. If you just walked in and demanded it, they'd probably end up asking you to leave. Your realistic target price for that vehicle is gonna be in the neighboorhood of $26,500 to $27,000.

edited: minor typo

 

[leeland]

also does anyone know where to get an accurate invoice price on a vehicle to get a starting point of a price to ask ???



thanks again

leeland

 

[Vic]

Either see the Edmunds link I posted above, go to CarsDirect, or have a friend/relative in the industry. Actual invoice prices are not something dealers give out freely or want you to know (and before anyone gets offended, did you know that there is a 50-100% markup on most clothing, for example?). They may let you see it if earnest haggling falls below the invoice price, in which case the salesman may show you the invoice as a way to bring the price up.

 

[KenGr]

Originally posted by: leeland

Originally posted by: woodie1
I don't haggle. check out the type of vehicle you want in person and on the net. Look up the invoice price. Decide how much you want to pay. Have him/her fill out a sales order at your price so they know you are serious. If they say no walk out. They have your phone number and will call you in a day or two. It doesn't hurt to make an offer lower than you are willing to pay so you can haggle a little and still get your price.

EDIT: Forgot to mention, do this in the last week of the month. Everyone at the dealership will have their eye on their bonuses for the month and will work harder to make the sale.

You make an excellent point....so let me give you a little senerio...


lets say you are trying to by car (X) which is around 30,000 listed at the dealership...now when you go and look up the invoice price is
MSRP Invoice
Base: $27,999 $25,748


how would you justify your price when they challenge you back with a higher price...by the way this is the price for the Xterra SE S/C. would you offer like 24,500 when the sticker price is 30,000 so they can come back with a higher price ???


also a related question what is the MSRP stand for ???


sorry for the ignorant questions, i like the hear how other people deal with this situation



leeland

MSRP is Manufactures Suggested Retail Price. That's the price the dealership would like to get. Then they would only have to sell about 2 cars a month.

Invoice is the supposed price the dealership pays the factory for the car. Except it isn't. The dealership gets a 2 to 3% "holdback" returned to them after they sell the car. So the "invoice" is really what they can sell the car for if they need to move it and still pay expenses. Most dealerships can't sell all the cars at invoice but they can sell some of them at invoice if they need to increase volume.

I always expect to pay $100 to $200 over invoice for a car. However, if you want a car that's in demand (like that hot new crappy SUV) you may have to pay considerably more. I never justify my price. Don't argue with the salesman. He's knows more about selling than you will ever know. If you can't get the price you want (or close enough that you can't justify making another trip) just leave and go to different dealership.

There are add on costs that are legitimate. Transportation, license fees etc. Before you start dealing find out about the "documentation fee". That's an add on that just covers dealers overhead but in some places dealers associations require all dealers to charge it to keep a level playing field. That's also true for "advertising fees". Sometimes factories do area advertising and require dealers to pay for in on a car by car basis. However, you have to check around and find out if this is legitimate in your area. Obviously, all the rustproofing, paint protection, interior protection, etc add ons are ripoffs.

Remember that even though you're buying a $25,000 car, to the salesman that last $100 is pretty important. A friend of mine who sold cars used to tell me about all the buyers who would haggle for hours to knock the car price down $50 and then buy the add-ons and take the dealer financing and put an extra $1000 in the dealer's pocket.

 

[Spac3d]

CarBuyingTips.com has TONS of info on how to get the best deal you can get. Read, read, read and be educated before you go to the dealer.

Good luck!:beer:

 

[LeeTJ]

be willing to walk out and show them you are willing to walk out.

 

[isekii]

Shoot for like 26,500
Are Xterras in high demand ?
I rarely see any on the road. Personally I think they're pretty ugly.
26,500 should be under invoice and doesn't seem too bad of an offer from your end. ( Xterra SE S/C )

If you don't wnat to walk in and haggle. Just fax them. That's probably the simplest way.

 

[DerwenArtos12]

walk into the dealership and when a sales man comes up just let him go through his schpeal then whenever he asks if you are ready say sure. go back to his office and let him run the numbers. he will throw you a number. you say that sounds nice but. you want the car 1000 below invoice. and if you are trading ina car tell them exactly what you want for it. then if they are not willing to deal from there then say thanx but you still need to shop around some more and thank him for his time. he will try and hook you but don't let him push you around just say thanx but i need to shop around more.

 

[Cyberian]

Originally posted by: leeland
also does anyone know where to get an accurate invoice price on a vehicle to get a starting point of a price to ask ???



thanks again

leeland

Edmunds for one.

 

[RossMAN]

Originally posted by: Vic

Originally posted by: RossMAN
I don't

I prefer to buy new cars BELOW invoice using a loss leader ad from the Saturday morning newspaper

Price is printed on the paper, VIN is listed, year/make/model is right there, assuming it hasn't already been sold - it's mine and no haggling required.

VERY effective when you're looking for the rock-bottom lowest price but you're not too terribly concerned about color/options, etc.

MSRP = Manufacturer's Suggested Retail Price

The best way to justify your lower price when haggling against a higher to imply that you could the product at your price (or thereabouts) from their competitor.

That price of $24,500 is way too low. It's ~$2,500 under the dealer's invoice cost. They would lose considerable money on the deal (it's less than their holdback). If you told a salesperson that another dealership would give you that price, they'd tell you to take it. If you just walked in and demanded it, they'd probably end up asking you to leave. Your realistic target price for that vehicle is gonna be in the neighboorhood of $26,500 to $27,000.

True.

With my no hassle "loss leader ad" method you have no choice when it comes to colors, options, doors, transmission or trim level. You take it or leave it basically.

But for the savings it's incredible.

All my future cars will be loss leaders.