YACT: I would appreciate your input on improving my haggling techniques please !!! (UPDATE)

[leeland]

Hello,
Thanks for taking a look at my question. Me and the wife are looking at getting a used 4runner...it is a 04 with 16000 miles and in great shape.

I have done all my homework and have a good idea as to what the vehicle is worth. they have it listed at 27,000 right now. I think that a fair price would be around 25,000 - 25,500

here is a little formula I found on carbuyingtips.com to try to assess the value of a car that is less than 6 months old

MSRP - 3000 - .15 * # of miles

so the MSRP is 31,000 - 3000 - 2400 = 25,600

for a 2003 Edmunds with similar settings has the value at 25,025...



how do you go about starting out the bidding...we already went to see it...we really liked it so I want to call him and let him know we are interested....but that I have come up with a different price that I feel is more approperiate...

I know that the guy is going to high ball me...and I would like your input on how to handle car dealers...or any personal tips or stories that may help


I appreciate any and all info


thanks

leeland

 

[woowoo]

Put your offer in writing and have a cutoff date.
Fax it to your salesman
Don't try to justify the price.
See what happens.....

 

[LordSnailz]

Originally posted by: woowoo
Put your offer in writing and have a cutoff date.
Fax it to your salesman
Don't try to justify the price.
See what happens.....

Should his offer be less than the fair price, or the exact amt of the fair price? I would think they wouldn't take the first price you give them ...

 

[PingSpike]

Good god don't act like you are 'really interested' in the car. Remember you don't give a sh|t if you get the car or not. You like the car alright and might be interested in buying it at the right price, but ONLY under those circumstances.

I think the most important thing in haggling is to take your time, and always be prepared to walk away.

 

[iamwiz82]

bring someone along with you who will keep mentioning a car you saw at another dealer that was a better deal, etc.

 

[Red]

Originally posted by: LordSnailz

Originally posted by: woowoo
Put your offer in writing and have a cutoff date.
Fax it to your salesman
Don't try to justify the price.
See what happens.....

Should his offer be less than the fair price, or the exact amt of the fair price? I would think they wouldn't take the first price you give them ...

Woowoo is on the ball. During phone/fax negotions, tell them what are you are willing to pay (bottom line, not higher or lower) and send it. Make it sound professional and urgent, that's why you include the cutoff date. If they think you are going to do business today, and they want to move inventory (is this a large dealership or small dealership?) they will know you mean business. Have you got financing yet? If you do, tell them you've got the $$ ready to go if they are will sell it today for 24,500 or something.

 

Find another dealership with the same vehicle and work the two against each other.

 

[Mill]

Why would you care about the price of it? You're going to raped in the ass by gas prices, so what's an extra 2-3k?

 

[Papagayo]

Just print the Edmunds page and show it to them and tell them to match that price..

I did that twice and got them to match it..

 

[gsaldivar]

Originally posted by: PingSpike
Good god don't act like you are 'really interested' in the car. Remember you don't give a sh|t if you get the car or not. You like the car alright and might be interested in buying it at the right price, but ONLY under those circumstances.

I think the most important thing in haggling is to take your time, and always be prepared to walk away.

Very good advice here. :beer:

 

[Vic]

Originally posted by: Roger
Find another dealership with the same vehicle and work the two against each other.

Exactly how it is done. Such a plan is easier with new than used though.

And do all haggling over phone, fax, and internet. That puts you in control. Never in person at the lot. That puts them in control.

And if your offer is reasonable, and they refuse to meet it or play some little back-door trick (like they say they will meet your offer but then the final paperwork shows a higher cost), then never be afraid to just walk away. If the dealership tries to interfere with your walking away, but still refuses to meet your offer, then do not hesistate to be rude in order to end the negotiations. There are other cars, and other deals.

The attitude to have is, "We want the vehicle, and are VERY interested, motivated, and qualified to buy it, AT ONCE, but at $XXX price, which our research has shown is the appropriate price for the vehicle. Please meet this price or we will take our business elsewhere."
Just a word of advice with no disrespect intended -- make sure your wife is on board with this strategy. If negotiations go sour, you have to be able to walk away at once, and not look back. The biggest reasons why people get stroked on car buying is because (1) they do not properly research beforehand, and (2) they don't walk away from a deal gone sour for them even when they know that they should.

 

[leeland]

Originally posted by: Vic

Originally posted by: Roger
Find another dealership with the same vehicle and work the two against each other.

Exactly how it is done. Such a plan is easier with new than used though.

And do all haggling over phone, fax, and internet. That puts you in control. Never in person at the lot. That puts them in control.

And if your offer is reasonable, and they refuse to meet it or play some little back-door trick (like they say they will meet your offer but then the final paperwork shows a higher cost), then never be afraid to just walk away. If the dealership tries to interfere with your walking away, but still refuses to meet your offer, then do not hesistate to be rude in order to end the negotiations. There are other cars, and other deals.

The attitude to have is, "We want the vehicle, and are VERY interested, motivated, and qualified to buy it, AT ONCE, but at $XXX price, which our research has shown is the appropriate price for the vehicle. Please meet this price or we will take our business elsewhere."
Just a word of advice with no disrespect intended -- make sure your wife is on board with this strategy. If negotiations go sour, you have to be able to walk away at once, and not look back. The biggest reasons why people get stroked on car buying is because (1) they do not properly research beforehand, and (2) they don't walk away from a deal gone sour for them even when they know that they should.

Vic that is excellent advice first and formost along with all the other great comments. here is how I was planning on dealing with this. I have most of the relevant data that I think I need. I went to lendingtree and we were approved for a loan of roughly 4.8% we have 50% to put as a down payment so the financing is not a problem.

we have shopped and test drove alot of cars, the reason we are gettting an SUV is we are having a little one on the way and I have a civic and her an eclipse...so we need a bigger vehicle...

I am going to call the dealer and basically be respectful and use your line Vic. we are not in love with any vehicle so walking away is not a problem...the wife is on board and letting me handle the negotiation part....the reason I am uneasy about this is it is my first big purchase on a newer car...so I am trying to get advice....which you guys are here for...and thanks so much


I apprecaite your comments and if anyone else cares to say something by all means please do


thanks

leeland

 

[leeland]

Ok I just got off the phone with the salesman. we initally traded some chit chat...and then I told him basically what Vic had stated above, that we were interested, and had financing all lined up...but at a price of 24,000

he respsoned that he couldn't sell that at that price...that that price was below what he paid for the vehicle...

he then goes "i got some people in my office can I call you back..." basically I was assuming he wanted to run some numbers and counter


so he calls back and says that he can't go below 25,800 since they already paid 25,000 for it and had to recondition it and all the yada yada yada....so I said thank you for your time and that the price he offered was a little out of our range...

then he said if there was anything he could do as far as the deal was concerned I could call him and he left it at that...

is it even worth haggling to try and get the price lower...I know he didn't pay 25,000 for that vehicle but it is my word vs his...going on what is posted on edmunds...a trade in on that vehicle is listed around 21,000 for dealer retail on a 2003...and if it were sold as private party it would be around 22,200

thanks for your help in this process


leeland

 

[waggy]

Originally posted by: Vic

Originally posted by: Roger
Find another dealership with the same vehicle and work the two against each other.

Exactly how it is done. Such a plan is easier with new than used though.

And do all haggling over phone, fax, and internet. That puts you in control. Never in person at the lot. That puts them in control.

And if your offer is reasonable, and they refuse to meet it or play some little back-door trick (like they say they will meet your offer but then the final paperwork shows a higher cost), then never be afraid to just walk away. If the dealership tries to interfere with your walking away, but still refuses to meet your offer, then do not hesistate to be rude in order to end the negotiations. There are other cars, and other deals.

The attitude to have is, "We want the vehicle, and are VERY interested, motivated, and qualified to buy it, AT ONCE, but at $XXX price, which our research has shown is the appropriate price for the vehicle. Please meet this price or we will take our business elsewhere."
Just a word of advice with no disrespect intended -- make sure your wife is on board with this strategy. If negotiations go sour, you have to be able to walk away at once, and not look back. The biggest reasons why people get stroked on car buying is because (1) they do not properly research beforehand, and (2) they don't walk away from a deal gone sour for them even when they know that they should.

great advice.

People who go in and try to act like they aren't interested in the vehicle look retarded. If you are not interested say don't like the car and quit wasting the salesmen time. IF you are interested in the car then say you are but you will pay XXX price. If they can't do that then say thank you and leave. If it is a reasonable price they will either sale it to you or they can't.

Always read all paperwork! every page! every line! double and triple check all figures!

Always be prepared to walk away when you can NOT agree or if the salesmen starts to play around.

 

[Vic]

KBB shows dealer retail for a 4x4 V6 base model at $26,580. If they think they can move it for $25,800 or more, they will hold it and wait.
At least the salesmen sounded professional, except for where he used the old tired line of how much they paid for it. When will car salespeople realize that while that may be important for their commission, it means nothing to the customer?
Anyway, it seems like you have their bottom line at this point. In a way, that's what you were looking for, to get to the bottom line quickly and easily. Now you have to decide whether you want to move up to it, wait to see if they come down (and the vehicle doesn't get sold), or walk away.

 

[TwoBills]

Keep it simple. Go look at the vehicle, get the salesman's business card, write your offer and phone number on the back, give it back to him/her, and WALK AWAY. If you get a call, you've got the car. If not, keep looking.

 

[leeland]

Originally posted by: TwoBills
Keep it simple. Go look at the vehicle, get the salesman's business card, write your offer and phone number on the back, give it back to him/her, and WALK AWAY. If you get a call, you've got the car. If not, keep looking.

Interesting idea...have you ever tried this technique ? I like the sounds of it...if you ever did it I would like to hear about your experiences

Lee