Why is bargaining at auto Dealerships a standard practice?

[dirtboy]

Originally posted by: Ballatician
so I've never bought a car before but I was wondering how many people have actually gotten at or below the Edmunds price for their area (zip code) when buying a new car?? It seems like if you show a dealer that price, which other people are actually paying for the car in the same area as you, you'd have to be a fool to pay more right?

6 months ago, or there abouts, I bought my Jeep for 25% off window and what turned out to be under invoice. So yes you can get good deals, it all depends on what you want, how much demand it is in, and how desperate (time of month) the dealership is.

 

[Ballatician]

so whats the best time of month? im guessing the switch to new models matters also

 

[BarneyFife]

Originally posted by: Ballatician
so whats the best time of month? im guessing the switch to new models matters also

It would have to be August/September when they are trying to get rid of the previous models.

Not a big fan of negotiating.

 

[dirtboy]

Originally posted by: Ballatician
so whats the best time of month? im guessing the switch to new models matters also

Yes, Aug/Sep as the next year's models move in is the best time. A lot of the research can be done ahead of time and when you find vehicles listed with rebates and/or low interest rates, those are the ones the manufacturer wants to get rid of and likely the ones the dealership has lots of. Those models are the ones you haggle on, cause the dealer knows after the promotions end, they are stuck with the car at full price.

Luckily for me, my lease is set to end around this time, 1.5 years from now.

But I am not particular about what I drive, so long as it is RWD. Unlike the recent rush of BMW buyers hitting this board as of late, I know I can't get a deal on one of them. So I get a vehicle not many want, but since it is discounted and I can further negotiate, I can get these cars decked out and at a lower price than someone getting a base model of a premium brand.

Just depends on how much of a badge whore you are and how important your self image is based on what you buy. If those aren't an issue, you can get fantastic deals with a little know how and research.

 

[cKGunslinger]

I somehow manged to get a car below invoice and cause the dealership to "lose money on the deal" when I bought my MZ3 last year. I feel so guilty for denying my salesman his commission. Hell, I assume he even has to pay back the difference in the price out of his own pocket. :roll:

 

[Manok]

Originally posted by: cKGunslinger
I somehow manged to get a car below invoice and cause the dealership to "lose money on the deal" when I bought my MZ3 last year. I feel so guilty for denying my salesman his commission. Hell, I assume he even has to pay back the difference in the price out of his own pocket. :roll:

he didn't lose money. Trust me.

 

[Thump553]

Originally posted by: Ballatician
so whats the best time of month? im guessing the switch to new models matters also

January is pretty good, especially this year. Very few buyers, everyone is cleaned out from Xmas and/or waiting for the President's day sales. Amazing how many new 2007's are still on the floor. Heck a Kia dealer I went to still had new 2006's left. The only trouble is your car will look like crap two days after you buy it (at least here in the snowbelt).

Generally speaking I'm told it's best to deal towards the end of the month-if the salesman and dealership can close the deal this month it may push them over the limit for a bonus, etc.

I price the cars on Edmunds and let the salesman know I know those figures. Also, avoid sitting down if at all possible-they get you seated they can work their sales magic. Tell them this is what I want, here's what's I'm willing to pay, can we deal? If they want you to sit and discuss say I have to run to price other vehicles, here's my cell number, give me a call when you decide.

When you get to the closing stage, be careful to avoid dealership addons-$100 floormats seem common now, every dealer around here trys to charge apporx. $200 to process the DMV paperwork, special wax jobs, etc.
I still hate the process but with preparation it's doable.

 

[SearchMaster]

I read something a few years ago that explains it perfectly (and this was before "no-haggle" existed). 1/3 new car buyers pays sticker price without even attempting to negotiate.

 

[PingSpike]

Originally posted by: SearchMaster
I read something a few years ago that explains it perfectly (and this was before "no-haggle" existed). 1/3 new car buyers pays sticker price without even attempting to negotiate.

Wow! Thats nuts because it seems like half the time the sticker price is MSRP + 3K or something.

 

[MetalMat]

Originally posted by: meltdown75
with fixed prices, the salesmen would never be able to "take your offer back to the manager". :roll:

i think every dealership has a blowup weeble-wobble doll "in the back" nicknamed "the manager".

You obviously dont know jack about sales.

 

[cKGunslinger]

Originally posted by: Manok

Originally posted by: cKGunslinger
I somehow manged to get a car below invoice and cause the dealership to "lose money on the deal" when I bought my MZ3 last year. I feel so guilty for denying my salesman his commission. Hell, I assume he even has to pay back the difference in the price out of his own pocket. :roll:

he didn't lose money. Trust me.

Sure he did - don't you know that's how car dealerships profit - they lose money on cars they sell! The key is, they make up for it in volume!

 

[Mxylplyx]

Originally posted by: rudder
Don't bargain. Research the car you want to buy, find a fair price, goto dealer and tell him you will pay X amount for the car. If they say no, then walk out. Of course this works best in an area where you have competing dealerships close by. Near me I can drive 30-45 minutes at the most and find at least one other dealer for whatever major car brand I could want.

Be sure to give them your phone number before you leave. You'll probably get a call before you even drive off the lot.

 

[BarneyFife]

Originally posted by: Mxylplyx

Originally posted by: rudder
Don't bargain. Research the car you want to buy, find a fair price, goto dealer and tell him you will pay X amount for the car. If they say no, then walk out. Of course this works best in an area where you have competing dealerships close by. Near me I can drive 30-45 minutes at the most and find at least one other dealer for whatever major car brand I could want.

Be sure to give them your phone number before you leave. You'll probably get a call before you even drive off the lot.

Uggh... I hate that. One rule when I see dealerships is never to give my phone number or they will not stop calling.

 

[sjwaste]

Originally posted by: cardiac
Is $200 below invoice a good rule of thumb? I'm in Northern VA and thinking about buying my first (new) car. I'm fine with negotiating, but finding my starting point on price has been difficult.

Out of curiosity, are there any good resources on negotiating used cars? The economist in me says to buy a 2 year old car to save a bit.

Here are 2 good articles to read: 10 steps to buying a new car.

And this: Confessions of a car salesman., which is a long, but good article.

Bob[/quote]

Thanks!

 

[rh71]

Originally posted by: ProfJohn

Originally posted by: rh71
I showed up with invoice pricing in hand. I got 2 other prices the same way before. Out the door in 10 mins with an offer of -$3625 off MSRP ($200 lower than the previous guy). They still got a little over invoice which I was fine with (BMW). Easiest sale ever, for both of us.

If you bought a BMW then why is your ride still a Rodeo?

Because it is a 4-5 week wait for delivery. It's custom built, not off their lot. I am picking it up this week. What a long-ass wait.