How flexible are car dealers' prices?

[jlee]

Originally posted by: teckmaster
I did a stint as a car salesman last year and have found working in the industry to be very helpful. New car prices for the most part, aren't that far above invoice prices for one. Used cars are marked up usually, between 3k and 4k.

As far as the new car prices go, a 20k vehicle probably has an invoice to the dealer for 18.5k. Now a vehicle that has a sticker of 40k probably only cost the dealer about 36k.

So from your experience..if I offered $4200 cash for a $6985 truck, are they going to take me seriously?

 

[QuitBanningMe]

Originally posted by: CadetLee

Originally posted by: QuitBanningMe

Originally posted by: CadetLee

Originally posted by: QuitBanningMe
1. Edmunds will not sell you a car
2. NADA left hand book is a good goal price.

NADA is $7500 to $9000..

What is NADA trade (left hand book)?

What's left hand blue book?

KBB dealer trade-in value in 'good' condition is $4170. Excellent condition is $4650.

I would start @ $5100. I wouldn't pay more than $5800 even if I really wanted the truck. I would by at $5600 and feel comfortable with my decision.

 

[QuitBanningMe]

Originally posted by: CadetLee

Originally posted by: teckmaster
I did a stint as a car salesman last year and have found working in the industry to be very helpful. New car prices for the most part, aren't that far above invoice prices for one. Used cars are marked up usually, between 3k and 4k.

As far as the new car prices go, a 20k vehicle probably has an invoice to the dealer for 18.5k. Now a vehicle that has a sticker of 40k probably only cost the dealer about 36k.

So from your experience..if I offered $4200 cash for a $6985 truck, are they going to take me seriously?

<--Salesman/F&I for a few years.

I would let you walk at anything less than $5500.

You do have a couple things going for you though.
Most banks will not finance over five years old.
You have cash?
They probably got it well behind trade due to the mileage.
They may not be like me.

 

[jlee]

I plan on buying with cash, yes -- as soon as my Corolla sells, that is..I think I'm getting ahead of myself here, since I can't buy it quite yet anyway

If it's still there by the time I can stop by, I may bring the Edmunds printout and offer 5k and see how the place feels..

I've only bought two cars - one from my grandfather, and another online..so I haven't really negotiated anything..time to learn, I guess.

 

[QuitBanningMe]

Of course arm yourself with all the information that is best for you. Don't be scared to walk. Find the price you are comfortable with and if they won't do it just leave and tell them if they reconsider to give you a call. I would try and get it for the least amount possible so start with Edmunds prices. However my first response would be "does Edmunds have it in stock"?

Actually you should always walk the first time when dealing with used cars.

 

[jlee]

Actually you should always walk the first time when dealing with used cars.

You mean make one shot at the price, and go with that?

 

[QuitBanningMe]

Originally posted by: CadetLee

Actually you should always walk the first time when dealing with used cars.

You mean make one shot at the price, and go with that?

Yes. Lowball, get rejected, give your number and tell them to have a nice day. Much easier than sitting at the dealer all day.

 

[Looney]

Originally posted by: CadetLee

Actually you should always walk the first time when dealing with used cars.

You mean make one shot at the price, and go with that?

No, don't just make an offer and walk away. Negotiate with him, to show him you're serious, then if he doens't agree, then walk out. They know that once you leave the lot, chances are, you aren't coming back. If you give a low ball offer and just walk, they know you weren't serious to begin with, and if you do come back, they're more likely to be antagonistic towards you for wasting their time in the first place.

 

[QuitBanningMe]

Originally posted by: Looney

Originally posted by: CadetLee

Actually you should always walk the first time when dealing with used cars.

You mean make one shot at the price, and go with that?

No, don't just make an offer and walk away. Negotiate with him, to show him you're serious, then if he doens't agree, then walk out. They know that once you leave the lot, chances are, you aren't coming back. If you give a low ball offer and just walk, they know you weren't serious to begin with, and if you do come back, they're more likely to be antagonistic towards you for wasting their time in the first place.

They will counter the offer at which point he should walk unless it is close to the number he has set in his mind. Giving contact info is enough to keep a salesman in pursuit.

 

[Looney]

I still wouldn't just give a low ball offer and then walk out. Take 15mins out of your day and negotiate with them, and if at the end you haven't reached an agreement, then give your # and walk out. But to go in, make an offer, then leave, is a little disrespectful. If they wanted to sell that low, then they will eventually to somebody else.

 

[jlee]

I should have plenty of time -- I'm not going to drive two hours to get there, and then get pissy if I have to hang around for 30 minutes.

A friend of ours runs a dealership up in NH..so I'll give him a call as well -- he may have something else available that I could pick up after I move.

 

[QuitBanningMe]

Originally posted by: Looney
I still wouldn't just give a low ball offer and then walk out. Take 15mins out of your day and negotiate with them, and if at the end you haven't reached an agreement, then give your # and walk out. But to go in, make an offer, then leave, is a little disrespectful. If they wanted to sell that low, then they will eventually to somebody else.

That is the negotiation. You give the number, they reject it, say "I have to go/have a nice day" and "if you can get closer to the price I can pay give me a call". They will probably stop him before he gets to his car but if they don't he will most likely get a call.

Everything is in his favor.
Car is listed in autotrader.
It has to be a cash sale.
Odds are they got it cheap.