Negotiating the price of a new car

The last time I bought a car, I was literally and figuratively taken for a ride. Those stealspeople can really juggle numbers fast and I would have ended up giving them my trade-in. By the time they added in destination charges, taxes, detailing and a dozen other little things, I would have been paying more than the sticker. When I questioned them about dropping some of the charges, the agent said, "Excuse me, I have to run that by the manager." He'd disappear and some other agent would come out and we'd start all over again. I said I wasn't comfortable about some things and started to leave. I thought they'd come running after me begging me to buy and agreeing with my deal. I got to the showroom door and looked back and the agent was leaning back in his chair with hands behind his head and smiling. To me it's sending the message,"Pay our price or go pound sand."

Any advice on how to negotiate with car salespeople?
 

Deb...I’ve bought many cars over the years and after I get home I wonder just what the hell just happened. We just bought a 2020 Kia Soul and when I try to understand what all the figures mean, I’m dumbfounded. After I signed the contract, I was asked to ring a big brass bell and everyone clapped and yelled. I think they were all thinking, congratulations sucker...:(
 
Yes, I was buying a truck once and I varified an "out the door" price. When the paperwork was brought to me to sign, it was a thousand dollars more! I walked out. The salesman called me a few days later and asked what happened and I told him, "Sorry, but i don't like the way you do business!" They can be sneaky!
 

I did some research on the internet to get a feel for the prices in my area for the new vehicle and the trade-in.

Then I went to the dealership's inventory online and requested a price quote for a vehicle that was already in inventory. The dealership online offered me a better price than the salesman on the floor offered me when I went into the showroom and he kept going around in circles over the value of my trade vs the cost of the new car.

I had already calculated what I thought to be a fair price using the information from the original internet search, dealer quote, and value of my old vehicle. When we finally got within a couple of hundred dollars of my number I bought the car.

I don't know if I got a good deal or not but it really doesn't make much difference to me since I drove the previous vehicle for thirteen years and will probably drive this one for a similar length of time. If I amortize any possible overpayment for that length of time it's small beans.
 
The last time I bought a car, I was literally and figuratively taken for a ride. Those stealspeople can really juggle numbers fast and I would have ended up giving them my trade-in. By the time they added in destination charges, taxes, detailing and a dozen other little things, I would have been paying more than the sticker. When I questioned them about dropping some of the charges, the agent said, "Excuse me, I have to run that by the manager." He'd disappear and some other agent would come out and we'd start all over again. I said I wasn't comfortable about some things and started to leave. I thought they'd come running after me begging me to buy and agreeing with my deal. I got to the showroom door and looked back and the agent was leaning back in his chair with hands behind his head and smiling. To me it's sending the message,"Pay our price or go pound sand."

Any advice on how to negotiate with car salespeople?
We have a retired car salesman on our side (a personal friend), and boy, if you can find the same, Deb, you'll have serious fire-power in your court the next time you go up against a car salesman, and you'll be able to tell them to go pound sand!

And don't be afraid to make calls outside of your State to beat someone's price. A colleague of my husbands was looking to buy a new truck, and there was no dealing in our area, so he and his wife woke up on a Saturday morning, drove a 3-1/2 drive away, and returned early Saturday evening with a brand, spanking new pickup truck, exactly what he wanted.
 
Shop when you don't need to buy. When you go in with that attitude the seller instantly knows they are in trouble. Second, shop at the end of the year or quarter or month preferably the last day and you will get better prices. Third, never tell them what you plant to do with your current ride. Also, the seller is not your friend so keep $$$ on your mind and in your tone of voice. Carry a piece of paper and after haggling remind the seller you are shopping not buying and show that person your piece of paper with the addresses and phone numbers of other dealers you plan to visit that same day. The last thing they want to happen is you walking away from their business because stats show very few return.
 
Exactly, they are not your friend @debodun, and don't let them try and make you feel you are a friend! Do some homework, investigate the type you want, how much you wanna spend, and stick with it! Don't let them talk you into things YOU don't want. Stay at the price you want! Plant your feet down, and don't budge... And being a woman ( not being mean by saying this) But they think they can push YOU over... Good luck @debodun
 
Since I started leasing in 1996, there are only two things to negotiate: The down payment & the monthly payments. That eliminates the trade-in arguments, financing, interest rates & the sticker price dispute.
For my last car - 2019 Nissan Altima SL, sticker price: $31,000.00, the salesman started with $4,500.00 down & $400.00/month.
An hour later, I drove off in the car - $2,500.00 down & $350.00/month. Much better than arguing for 3-4 hours. In 3 years, I turn the car in & get a 2022. No negotiation over trade in, no repairs, no arguing. And probably an even better deal if the economy is bad & dealers are more desperate.
I did go to one other dealer but they didn't accept my offer.
 
Any advice on how to negotiate with car salespeople?

When I left the USAF, I took a job as a car salesman at a Pontiac dealer in Denver, for about 4 or 5 months while I looked for an "honest" job. That was an Education! Every morning, there would be a sales meeting, and at the end the manager would say "OK, lets go stick it to them".

The best advice, IMO, is to do your shopping online first, and use a site such as Kelley Blue Book to determine the value of your existing car. Then, check the dealer web sites to find a car you want, and the price. Once you know the dollars involved, put any and all emotion aside, and visit the dealer pretending to "shop" for a car....rather than needing to "buy". If they think you are just shopping, instead of buying, they are more likely to make an attractive offer, and induce you to not go to another dealer.

The "markup" and dealer profits vary widely, depending upon the vehicle. Basic economy cars usually only have a 5% profit margin, whereas top of the line expensive cars and pickups may have a 30%, or more, markup. The cheaper the car, the less room to 'maneuver".

The time of the month also makes a difference. All sales managers are under pressure to make their monthly "quota", so as the last few days of the month arrive, there is a better chance that the dealer may be behind on sales, and offer a better deal, so as to make their "numbers".
 
I looked at the Honda web page of the dealership closest to me. The prices on their listed models have a red line through them. I assume this meas the prices are negotiable. I find Honda and Toyota salespeople are the most difficult to try to get to take off on the sticker price. Their smug attitude does not endear them to me. When I tell them it will be a cash deal and I will not be financing it (and the dealership would be the last place I would do financing though) they become very uppity. You'd think they would welcome a cash deal!

I also would like to know if including a trade-in is better, or trying to sell my old paint shaker on my own. If I give the trade-in to the dealer, I don't have to worry about insuring and registering two cars in the event I can't sell it. The dealers tell me that after 3 years (or 30,000 miles), a trade-in is virtually worthless (and my car is old enough to vote). Also, if I sell on my own, I might get more in money, but run the risk of the buyer complaining about this and that about it after purchase.

I think I read or heard somewhere that the last week in December is the best time to buy a car. The dealers are anxious to unload their remaining inventory of that model year, and people are financially strapped after Christmas and not shopping for cars.
 
Deb,

These days all deals are cash deals, they get the money directly from you, the bank, or their own brand's finance company.

When I trade my old cars in they are immediately sold to a scrapper or auction dealer that is usually lurking around in the backroom ready to whisk them away. I insist on the dealer taking my old car because I don't want to deal with the hassle of trying to dispose of it on my own.

Buying a new car is a daunting task and I wish you all the best.
 
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Any advice on how to negotiate with car salespeople?

Bring my SIL. ... When I bought a new car in December, I knew (in my head) exactly what I wanted, AND what I wanted to pay.
The salesman had other ideas! .. After an exhausting and embarrassing 2 hours, my son-in-law got me the deal I wanted. It only took 5 trips back and forth between the salesman and head honcho. But we won in the end.
Myself, I would have given up the haggling after a couple attempts.
Glad I don't intend to ever buy another car.
 
1-Dealers get "kickbacks" from the financing company. When you pay cash, it costs them money. Some will ask you to finance the car and then immediately pay off the loan if you wish, just so they get that "kickback." It's a big part of their profit.

2- Walk around their used car area (or look at used cars on their website) to test their
3 year/30,000 mile = Valueless theory. Hint: They will fail.

Actually, I just went to the website for Carmax in Albany.
Here are the Year/Mileage/Values for a couple Hondas and Toyotas they have in stock.

There's a 2014 Honda with 85,000 miles for $18,000
There's a 2017 Toyota with 36,000 miles for $29,000
Heck, there's a 2015 Honda with over 100,000 miles for $16,000.

Valueless? Lying ba$tard$.
 
1-Dealers get "kickbacks" from the financing company. When you pay cash, it costs them money. Some will ask you to finance the car and then immediately pay off the loan if you wish, just so they get that "kickback." It's a big part of their profit.

Awww .... thanks for that info! I was ready to pay cash for my car. The finance guy wouldn't hear of it! .. said I could pay half down, but had to finance the rest. Now, i see why.
And now, it's hard to pay off during the present 'corona' time, because I would wonder when I would get the title.
 
Awww .... thanks for that info! I was ready to pay cash for my car. The finance guy wouldn't hear of it! .. said I could pay half down, but had to finance the rest. Now, i see why.
And now, it's hard to pay off during the present 'corona' time, because I would wonder when I would get the title.
I can't recall if my title was mailed to me here in Virginia when I paid off my truck. I believe that it was, because the lien was removed.
 
Those prices are almost new car prices!
Yup.

I bought a new car in March of 2019. I started looking at low mileage used. The prices were so high that when I calculated the payment based on the loan rate for used cars, then compared it to the payment for new cars at new car loan rates, I realized I could have a new car for an extra $25/month.

My younger brother owned his own repair shop for decades. He was looking for a used pickup truck around the same time, and he ended up buying new because even with his connections, he could not find a good deal on a used car.

Than being said, used prices are gonna come down. They have to. There are tons sitting on lots. I'm surprised Carmax is still as expensive as they are.
 
Awww .... thanks for that info! I was ready to pay cash for my car. The finance guy wouldn't hear of it! .. said I could pay half down, but had to finance the rest. Now, i see why.
And now, it's hard to pay off during the present 'corona' time, because I would wonder when I would get the title.
So I'll share a story about how rich the DC area is because of the presence of the Federal government.

When things were booming a few years ago, there was a high-end luxury car dealer (Lamborghini?) who was lamenting his lack of profits. Sales were soaring, but everyone was paying cash!!! CASH!!!! He was missing out on those finance-referral fees and it was killing him!!!
 
My dad told me once that to never buy a used car because you're buying somebody else's problem. Nobody trades in a good car.

Why buy a good used car when I have one. LOL. It is a well-maintained 2002 Honda Civic, only driven by an old lady delivering meals-on-wheels.

View attachment 105823View attachment 105824
Good for you for doing that.

I spent 7 years with an organization that did free home repairs for folks in a couple of counties here. I did work on 40 homes, and was treasurer/business guy. Now I do a little Habitat work.

I've thought of doing meals on wheels, but things are so spread out around here I'd be really racking up the miles on my car.

I'm not sure all used cars are someone else's headache. Some number of people trade in every year or two.
 
I looked at the Honda web page of the dealership closest to me. The prices on their listed models have a red line through them. I assume this meas the prices are negotiable. I find Honda and Toyota salespeople are the most difficult to try to get to take off on the sticker price. Their smug attitude does not endear them to me. When I tell them it will be a cash deal and I will not be financing it (and the dealership would be the last place I would do financing though) they become very uppity. You'd think they would welcome a cash deal!

I also would like to know if including a trade-in is better, or trying to sell my old paint shaker on my own. If I give the trade-in to the dealer, I don't have to worry about insuring and registering two cars in the event I can't sell it. The dealers tell me that after 3 years (or 30,000 miles), a trade-in is virtually worthless (and my car is old enough to vote). Also, if I sell on my own, I might get more in money, but run the risk of the buyer complaining about this and that about it after purchase.

I think I read or heard somewhere that the last week in December is the best time to buy a car. The dealers are anxious to unload their remaining inventory of that model year, and people are financially strapped after Christmas and not shopping for cars.
 
The LAST thing you want to do is tell them you will pay cash. The dealers get a nice kickback from the financing companies, and they rely on this for part of their Profits. When you negotiate for a new car, ask the salesman for the final price, and be a bit "iffy" on how you intend to pay for the vehicle. Once you have a commitment from them on the price difference, and the price seems fair, THEN you can drop the bombshell on them when you tell them you intend to pay cash.....watch the expression on their face change. Dealing with most car salesmen is almost a game of psychological warfare, and you have to be mentally prepared to play their "game".

Most dealers make 90% of their profits from their service departments, and the car sales are a nice "bonus" for them. Perhaps 1 in 10 car buyers have the skills and patience to get the best deal....so let their BS go in one ear, and out the other, and keep your cool. If you aren't satisfied with their deal, just politely tell them you are going to have to think about it, and leave. If they are serious about selling the car, they will probably call you back in a day or two, and Then, you are on the way towards getting the best price.
 
What about a car buying service? Give it some thought. If you are considering new then look in to what the depreciation is after 2-3 years. I recently viewed this and was shocked at the depreciation on some cars that I thought depreciated very little. Some posts here refer to 2-4 hours of haggling. That is crazy and it says the dealership is wearing you down. Offer your price range and give them no more than 10 minutes and tell that to the sales bug you are dealing with when he or she goes in to the managers' office.
 


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