Price Haggling at a Dealership

Thanks for the links! So far it is online appraising between $3k and $5k higher than the advertised price given the mileage, options and in "excellent" condition.

I think that because it has cloth interior, not leather, no sunroof and no backup/NAV, they are having trouble moving the car. It has been on the lot for over 60days. Unless there is something wrong with it ofcourse, lol.

 

We have alot more room to move the price on used cars than new.
New has hidden incentives from the factory they can play with but not on used.
Just dont seem excited about the vehicle or in a rush to buy. IF you have to come back the next day or not at all then so be it.

 

When they give you payments on their 4 Square sheet they always use ask how did they get to that payment. they try to just use a payment to get you to agree. Stick to the numbers and tell them the payment is what it is when the the price of the car and the value of the trade is agreed on. then ask what interest rate they are using. They just pull one out of the air that they KNOW you will get approved on. But they can write any rate they want in the deal and send it to the banks and see if it gets apprioved. I went down 2% from their first estimate before I agreed to buy and let them send it to a bank for approval. Once a deal is done it usually wont get undone because of a rate. the dealers are paid by the banks for the loans they write, and the higher rate the more they get paid.

So I start like this. See there car, drive it, I DOUBT you can put it on a lift, safety rules. then agree an a price to buy the car at.

Then work the trade. they will appraise it and come back way below blue book. Have a blue book value in mind and see how close they will come. If they have a similar car to your trade on the lot then point it out and say its selling for XXX and you should give me XXX for mine. Keep in mind they usually need atleast a couple thousand between purchase price and selling price.

Now work the payment. What rate are they offering. would your bank offer better? Can they put in a lower rate and submit it to the banks and see who bites? Also they will offer all kinds of warranty and protection plans. refuse all you dont want and keep in mind those prices are negotiable too.

 

I have found it is best to negotiate a good price and rate then tell them you have a trade in.

 

Thanks for the feedback, guys.

Our possible trade-in is pretty rough, lol. My wife's 1993 Mustang LX convertible is not much to look at. I don't expect an offer more than $500, which is probably wholesale/scrap value. It has rust spots, the rear window canvas is torn with HVAC tape holding it in. The seats are faded and it smells like a used sponge. But it runs great and the top works, haha. So... yeah.

 

dont bother trading in the mustang. it may hurt the amount of room they can bargain with on the new car. Just toss a for sale sign on it and ask for $1000 and it will sell. the dealer $500 wont do anything for you and they wont get that back out of it so they will com edown less on their car.

 

Ryan, makes sense.

 

You could even part out the car and then scrap the rest yourself. Even if its a 4 cyl can it has alot of good parts on it for a 5.0 project. The 93 mustang airbag clock spring is about the rarest part there is for fox bodies. they list on ebay for $150 or more sometimes bcause 93 and late 92 are very specific. And if the wheel is in nice shape i could use it, the rubber dries up and flakes down here in the desert.

 

End of month sales are to your favor, gotta meet the quota.

If dealer offers financing, do it! They get $$$ back from the bank they use. Check credit union, insurance company, your bank for the cheapest loan rate around. The dealer will match it if not beat it by 1/4%.

As said earlier, walk away and DO NOT fall in love with the car! Plenty of others out there. Know your rock bottom price, let them quote you a price before you offer your price. NEVER buy a car just by a monthly payment! You should have a ballpark figure on what 20,000 will cost you a month for x years and Don't let them extend years to get payment lower. Oh,,, don't be afraid to walk away from sale!

As you said with cloth seats etc, most people may not even look at that car. A good point for you!

Have you priced a new car that will suit your needs? May be a better deal when all is said and done. Lots of good deals on new cars! Might be a good idea to let them convince you with sweet deal on buying new!

You do take a gamble on car being sold if and when you walk out , but after your research and what YOU want to pay for is not met, leave and THEY will call in a couple days making a better offer. You do have to be fair on your offer, it does sound like you are being fair.

Just being honest here,,, Don't let them get your wife to sweet talk you into their deal! Happens many times.

Good luck!

 

Dave,

All great points, thanks. Like you mentioned, we also thought of talking to the dealership about new options, just to make sure it was not out of the picture. Thanks again!

 

What I've done is tell the salesman you will speak only to the manager,tell the manager with the salesman right there, your time is worth more than his because it's yours and that if he can't give you his "out the door"price within 30min.including commission for salesman,your gone.They may test you,so you need to be able to walk from it.Once you have that figure,tell them you're taking it for a drive,without them.They can appraise yours at this time.Drive it directly to a different dealership.Tell that salesman the same thing.When his manager greets you,Just say "I'm not trying to be rude but I'm not the customer you"ll be making a lot of money off of.I am ending this day with a new car,either yours or the one I drove here for $--- out the door.If you can beat it ,we can do business,but I'm taking this one back in 30 mins." One manager told me that's not how they do it there,it's unorthodoxed.I said this is how I do it. Worked for me,first time was in 1986.Saw the ford I wanted,Went to a chevy dealership.Told them Ford has my baby for $16k.They said the best they could do was $17,3.I took the loaded chevy 1ton4x4 over to Ford.Said I don't need 1ton for $17,3,but I'll take that loaded ford3/4ton4x4 for$16k that's what I told them you'll sell it for.He came back with $16,616. He said that was his best price.I said "Mount a spare under the bed,get the paperwork started" When I returned the chevy,he said he would go lower.I told him to educate himself on phrases (out the door).No sitting there haggling for hrs.For me it's fun and stress free.B.T.W. The ford is what I was after.It was listed at high $19k .

A much more simpler way is :get on the manufacturer's website ,choose the options you want.It gives you the invoice price with it. Print it and add your name and phone #.Make copies.Go and talk to the manager at each dealership take their business card and leave a copy of your invoice build.Let them know you're visiting other dealers same way and you're going with the best deal.
In 2005,for Mothers Day,my wife got a 2006 chrysler300 for $100 over invoice.The manager actually got it from one of the other dealerships that he beat !
Good luck,Rusty. John

 

My day job is selling car dealers their advertising. My Dad has been a Ford dealer since 1953....sales, management, ownership, etc.....and at 81 years of age....he is still at it. I grew up on a Ford car lot.

Having said that....here is what I can offer.

What they give you for your trade-in means nothing. Bottom line is the "difference" you have to pay. Since you described what you have to trade in, I can tell you, it won't matter what they show you on paper.....they will be putting ZERO dollars into your trade-in. I would not trade the car in. Just sell it on Craig's List, ebay, etc.

Since you won't have a trade...the next thing is the price you have to pay for the vehicle. I can tell you...it is a seller's market right now. Used cars are in short supply right now. Most dealerships have half the inventory they would like to have. Cars are VERY HIGH at the dealer auctions. What a dealer has to pay for a car right now is very high. This high cost then has to get passed on to the consumer. The dealer had to pay more for the car....so that means he has to sell it for more.

Buy the car based on the total out the door price. Since you are financing the car, some dealers will try to sell you a car based on PAYMENTS. You need to buy the car based on PRICE. There is a difference.

If you need more help, let me know. Lot's of Flex's in this area. Heck...my Dad might have one.

 

And as a side note.....not ALL dealers are crooks. Yes...there are some that are out to "get you"...but they are not all that way. Reading some of these posts makes it soud like all dealers are out to rip people off. That is just not the case. Best to shop around. The "crooks" will reveal themselves pretty quickly.

 

The Best option would be to get your loan approved by a bank or credit union and go buy the same car Private Party if there are any listed for sale. Takes more time and work on your end but you get a better deal. yo uwould save on tax, document fees, and all the crap the dealer charges, plus would be less markup.

 

Thanks John, great information!

Craig, thanks also for the info. I agree, we will leave the Mustang out of it. Also agreed on the total price versus payment price. I can definitely tell that there are not many used cars around.