Teach me how to haggle with dealers

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iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
I wanna learn how to haggle with dealers over used cars.

Currently i'm looking for a 1999 Jeep Cherokee with 35,000 miles. There is one near my house for $12,800 sticker. KBB value for trade in is $9,030. It has brand new(still has the feelers) tires. How can i talk them down? I may or may not finance with them. I may also trade in my girlfriends 1995 Olds Cutlass Ciera, which KBB give $3500, trade in is $2500.

The SUV also comes with an 8 year/80,000 mile including 4WD and all other parts of it.
 
A

Atrail

Diamond Member
Apr 20, 2001
4,326
0
0
What kind of dealers are we talking about here?



Edit:-- Ok so its car dealers!
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: JeffreyLebowski
Don't pay stupid prep fees or crap like that.
Also what trim level is it?
Click to expand...

Sport. Not too many features, but i dont mind. PW, PL, PM, tint, towing package, roof rack.
 
L

linuxboy

Elite Member
Oct 9, 1999
2,577
6
76
Hi,

here is roughly a century of research on negotiation and human behavior condensed into one post:

1) Know what your best alternative to an agreement is but do not let the other party know it.
2) Set a target price, low price and high price.
3) Start with the low price and give up the same amount as the other person gives up, and incrementally give up less by 1/2 until you reach your expected target
4) Never start first and always do your research
5) Give them something of value that cost you little and build on an intergative solution to generate a win-win outcome.
6) In this case, pay in cash and be ready to walk out when your price isn't met
7) Check out the kelly blue book at kbb.com to make sure the dealer gets a decent profit of about $400 but no more, use that as your target price.


Cheers ! :)
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
thanks for the articles. I have read them, but i want everything condensed, since there are 1000 different website stating 1001 different ideas on how to haggle. I'd like to make a complete list of all ideas.
 
K

kgraeme

Diamond Member
Sep 5, 2000
3,536
0
0
Originally posted by: linuxboy

5) Give them something of value that cost you little and build on an intergative solution to generate a win-win outcome.
Click to expand...

intergative ?
 
P

Pacfanweb

Lifer
Jan 2, 2000
13,158
59
91
First of all, I don't know where you live, but a 95 Cutlass is maybe a 1500.00 trade in. KBB is tits-on-a-boar hog-worthless, unless you're the one selling the car.

Go Here and use the Black Book to figure out what the dealer might have in the car. Rough book is generally what you get on trade, so figure that plus maybe 400 bucks to get it ready for sale, unless they tell you they put brakes, tires,(you said they did, actually). So add whatever the tires cost to it.
That's probably pretty close to what they have in the car, unless they practically stole it at auction or something.

Now, average dealer profit on used cars is 1500.00. If they will come lower than that, then more power to you. But that crap about dealers only needing to make 400.00 on a car sale is just that, crap. If that's all they made on every sale, they wouldn't be in business for long, especially new car dealerships.
If you buy a 10,000.00 car for 10,400.00, that's what, a 4% profit for the dealer? That's what a lot of people will tell you is fair. Then those same people will ride with you in your new car to the mall and both of you pay 50.00 for a polo shirt that cost the store there 8.00 and think that's ok.
So if a dealer has 10k in a car and you can get it for 11,500.00, that's only 15% mark up. Not a bad deal. Of course, if you can get a better one, go for it. Use the link I gave you to figure out what you think is a fair price (average retail is pretty fair), and just tell them that's how much you'll pay, and stick to it. The best way to "check their temperature" is to get up and start to leave if they balk at your offer. If they start kissing your butt trying to get you to stay, you're probably going to get your price.

Sure, car dealers have a well-deserved reputation for being crooked that has been built up over many years. But that doesn't change the fact that they do need to turn a profit, so they'll be there next time you need a car. So just stick to the black book values, especially for trades, and you'll be playing in the same ball park as they are.
 
T

tcsenter

Lifer
Sep 7, 2001
18,949
573
126
If you want to learn the art of negotiation and bargaining, this is one of those skills you cannot get from a book, and certainly not a discussion forum. Sorry, you may not like to hear that, but then the truth isn't always warm and fuzzy. You need to find someone who is a tough and intuitive negotiator, then learn from them personally.
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Cutlass Cieras(94-96) around my area go for $3000-$5500.

Your link actually pops out $2500 for trade in, $3900 for retail. This is average, which it is. As i said before, i would assume that they grabbed the jeep for $9000, assume $1000 in details, and they have it for $10000. They are wanting $12,800. Thats a 28% increase. I dont wear name brand clothes, either. My last shirts i got 4 for $5 ;)
 
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Pacfanweb

Lifer
Jan 2, 2000
13,158
59
91
Originally posted by: iamwiz82
Cutlass Cieras(94-96) around my area go for $3000-$5500.

Your link actually pops out $2500 for trade in, $3900 for retail. This is average, which it is. As i said before, i would assume that they grabbed the jeep for $9000, assume $1000 in details, and they have it for $10000. They are wanting $12,800. Thats a 28% increase. I dont wear name brand clothes, either. My last shirts i got 4 for $5 ;)
Click to expand...


I just checked, and mine said 1300 for ROUGH (which any 1995 is) trade in. 2500 is AVERAGE trade in. You don't get AVERAGE trade in.
It is irrelevant what they go for. Just because people around there ASK 3-5k doesn't mean they GET 3-5k. Heck, they can ASK 10k if they want.
What does the Jeep book out for? Like I said, set avg. retail as your target(or somewhere in that area, depending on the individual car) and stick to it. I wouldn't pay clean or extra clean retail. If they got it for rough book, then they should make decent money selling it for avg. retail. If the 12,800 is clean or extra clean retail, hammer them with the avg. retail figure. If they don't budge, then leave. If they are willing to sell it for that amt, that's when they'll let you know.

EDIT: any 95 vehicle with normal mileage is a ROUGH book trade in. Period. You can buy them at the wholesale auction all day long for 1000-1200 bucks (Cutlass Ciera I'm speaking of), so you really can't expect the dealer to give you much more than that.
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
every 1995 is rough? There are no problems with this car at this point. My mechanic said it is still is great shape, especially for its age.

I should add, this vehicle was an older woman's car. it has low mileage
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Another thing, There are 4 dealerships selling similar Ciera for $5000-$6000. Obviously, the economy here supports those prices, so I would think $3000 is fair.
 
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Pacfanweb

Lifer
Jan 2, 2000
13,158
59
91
Yes. Nearly any trade in will bring rough book. Read the definition of what rough is, and you'll realize that's the truth. Low mileage or not, if a dealer can buy them for that cheap or cheaper at auction, then that's what you'll get for trade in value.
All those price guides are really doing people a disservice by not just printing the truth.
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
I was planning on selling it privately, since all the high school kids are learning to drive now and they want a car cheap with cheap insurance, which is this car.
 
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GermyBoy

Banned
Jun 5, 2001
3,524
0
0
Haggling is something that you are born with, it's in your personality. It cannot be taught.

Sorry!

Peace,
GermyBoy
 
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Pacfanweb

Lifer
Jan 2, 2000
13,158
59
91
That's the best way to go nearly every time. The exception would be when you're upside down and need to roll some negative equity into another car. Then the best way is to trade.
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: GermyBoy
Haggling is something that you are born with, it's in your personality. It cannot be taught.

Sorry!

Peace,
GermyBoy
Click to expand...

I dont know if i can since i have never tried on a car. But, i'm a heck of a haggler when it comes to PC parts ;).
 
iamwiz82

iamwiz82

Lifer
Jan 10, 2001
30,772
13
81
Originally posted by: Pacfanweb
That's the best way to go nearly every time. The exception would be when you're upside down and need to roll some negative equity into another car. Then the best way is to trade.
Click to expand...

The car is completely paid off.
 
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