Originally posted by: Staley8
Originally posted by: CPA
Never negotiate monthly amount. Always negotiate total cost, including warranty and any other add-ons. But don't forget to add in tax, title and fees that normally won't come into negotiating total cost.
Ya, what he said. I ALWAYS negotiate the "out the door" price. I tell them I'm not going to deal with tax, title, license and extra fees after we agree on a price. They will tack on around 10% more onto the sales price if you don't negotiate for an out the door price. So for starters, take the sticker price, tell them you will only deal with out the door final price and then make an offer even lower than the sticker price. My last truck I went $5500 below the "sticker price" for my "out the door" price. Don't be afraid to spend hours negotiating. It may be very tiring to you but the salesmen will start to freak out and sell lower than intended b/c he's already sunk so much time into you, he doesn't want you to walk away without at least a small profit for him.
I agree for the most part but why spend hours negotiating? Salesmen don't freak out afraid that you'll walk out on the deal and they wasted their time. To them, that's just one more bit of leverage to hold against you. They even brag to each other about how they have one "on the hook" or "in the box".
Here's how you buy a car in today's modern world:
- Research what you want on the internet. Right down to the last option and color. Do not forget to check out the message boards set up by owners.
- Call up dealerships and schedule test drives of those cars you think you like. Do NOT give them your car's keys, discuss trade-ins, payments, or anything of that nature. DO let them make a copy of your drivers license if they need it for their insurance purposes, but time them 5 minutes max to make the copy. After the test drive, do NOT walk back into the dealership but straight back to your car and drive off. This process should be quick and dirty. In, drive, out. Ideally, you should be able to do it on your lunch hour with time enough to still have lunch.
- After the test drives, you should have narrowed down exactly which car you want to buy. Call and email around to the "internet sales department" of the various local dealerships looking to see who has exactly the car you want in stock and for what price. Do all negotiating over the phone. They offer $XX, tell them that so-and-so dealership will go $XX less. Everything over the phone and email. Be polite and spend minimal time. What you are looking for is to become an instant "mini", or a smart customer where they sell it quick at a minimum just to post a number and clear the dealer's lot of excess inventory. Only fools walk the lot, and after they work a fool for hours, they expect a fat check.
- "Out the door" price is meaningless, because it varies. For example, my state has no vehicle sales or excise taxes. Purchase price, purchase price, purchase price. If you don't see the fee, it's not because it went away, it's because they hid it somewhere.
- Complete credit app, etc. over phone, fax, or e-mail. All from the comfort of home or office. If the vehicle is used and/or you don't quality for ridiculously-low-interest manufacturers financing, then go to your bank or credit union and get your own.
- Schedule a date and time to sign for and pick up the car. If the car is used, arrange for a third-party inspection (expect and
want to pay for this out of your own pocket).
- Go pick up the car. Examine it thoroughly for mileage and imperfections. If the car is new, all imperfections are to be fixed before you accept delivery. Read and examine all paperwork before signing. If you can't read documents, take someone with you that you trust who can. If the numbers aren't what you were promised, demand they be fixed.
- If everything works, drive home happy.
I spent less than an hour talking with salesmen when I bought my last car, and I picked up an import for $4k under sticker ($1k under invoice). So unless you actually like haggling with salespeople, you can do it your way. Otherwise, I strongly suggest the back-door "mini" way.
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