The new forums will be named Coin Return (based on the most recent vote)! You can check on the status and timeline of the transition to the new forums here.
The Guiding Principles and New Rules document is now in effect.
Talking a car dealer down in price?
Reverend_Chaos
Suit Up!Spokane WARegistered User regular
Suit Up!Spokane WARegistered User regular
So, my fiance in the market for a used car - she found one that she is interested in. It is priced at $1,995 (at a dealership) and I did some online research and found that in the condition that it is in, which is very good, and with all the features it is worth $1,492. (This is all according to Edmunds.com btw) In average condition it's worth $1,144 (the car is really in great condition though, as far as the interior and exterior go.) I don't know about engines myself, but the dealer is very reputable, and the online reviews about the particular make and model are very positive.
I would like to get them down to $1,400, or lower if possible. There is no car to trade in, but we will have cash when we go down to the car lot.
Anyone here work in car sales that can give me some advice?
Anyone successfully talked a dealer down on price.
I would like to get them down to $1,400, or lower if possible. There is no car to trade in, but we will have cash when we go down to the car lot.
Anyone here work in car sales that can give me some advice?
Anyone successfully talked a dealer down on price.
“Think of me like Yoda, but instead of being little and green I wear suits and I'm awesome. I'm your bro—I'm Broda!”
Reverend_Chaos on
0
Posts
Go in low, and ask for more then you want. Be like "I'll give you 1200 cash in hand for it, and you'll throw in a 10000 km warranty on the drive train". The dealer will either look at you like you're from mars (in which case they were never going to haggle) or they will make a counter-offer.
It's your money and they can't just take it out of your wallet. You have to agree to the sale. So simply don't agree until the price is what you want. Haggling in the US is funny because most people overvalue things and feel bad about lowballing businesses.
(Interestingly enough, you see the opposite approach when people are dealing with individuals. Just look at garage/yard sales, where someone will offer a dollar for something marked $15.)
Don't put a lot of value into cleanliness/how shiny the car is, especially at that pricepoint. That's the result of a half-hour's work in a wash bay and some ArmorAll. It won't do you much good washed and waxed sitting in your driveway with a blown transmission because the previous owner abused it and went 20000 miles between oil changes.
Have you got a trusted local mechanic, or if nothing else, a gearhead friend you can take it to for a checkup? I assume you've given it a test-drive, etc.
How about some specifics on the car? Year, make, model, mileage.
Can trade TF2 items or whatever else you're interested in. PM me.
My haggling was for a new car, where the amount you can cut off isn't 1/4 of the total selling price, but the same method can still apply.
The sight of cash now will make deals happen fast, think about it from their end, the longer they keep are car the less its worth as well as the more space being used up for a potentially higher profit item. Would you rather make $1500 today or $1600 in 3 months.
I'm not a big fan of spreading money out or putting it down. I wouldn't let it out of my hand until a deal has been made.
If you're going to offer a price have something to back that price up, especially if your trying to lowball the guy. Look online and in the blue book and bring the printout with you. Just stating a price without any justification for that price is basically just holding your pecker in your hand.
Is the dealer a "mom and pop" dealer or a big dealer?
With cars on the lower end of the scale (sub $3000), it's not really reliable to go to Edmunds or KBB and check the price. Once you get to that price range it really comes down to how well the car runs and how clean it is. A clean, good running car can usually fetch $2000 easy whether it's a 1990 Honda Civic or a 2000 Ford Focus (at least around here it can).
What I'm saying is you SHOULD haggle, but I wouldn't put a ton of faith in Edmunds on this one. I could be wrong, but that's been my experience.
First, as mentioned before the ability to haggle does, to an extent, depend on the type of dealership it is. Many smaller dealerships are more flexible as cash in hand is very attractive. Some larger dealerships will be less flexible or may have even moved to a fixed pricing (no haggle) system.
Secondly, While Edmund's, Kelly Blue Book, etc will have price estimates on cars they are exactly that. When I sold cars people would bring them in all the time, if their numbers didn't help my sales I'd usually say something along the lines of: " Well Mr. ______, I appreciate that you have done a lot of research, we also do a lot of research before we price our cars and while we do use Edmund's and KBB pricing as an estimate it is just that an estimate. We also look at the current market for other similar used cars both on our lot and those of other local competitors. We are very confident that our current price is the best possible value for that vehicle. So it is unlikely that will make or break the deal.
Third, when you do negotiate realize that the amount of sway a sales person has may be limited in certain dealers. so in order to knock 25% or anywhere near that off a car will likely require the used car manager to approve. Be ready to Have a second individual get involved and attempt to use mind trickery on you.
Finally, as has been previously mentioned don't be afraid to walk away, a major consideration for price is age of inventory (dealerships pay interest on cars since they don't "own" them, the bank does) so waiting a week to a month may be the difference of $500. also most dealerships are more likely to "bend over" towards the end of the month when the final numbers are being decided. Often times your purchase could push them over a threshold that would make it worth taking a loss on that 1 car.
Ultimately that dealer may be right in this case, anything below 2k can be a difficult market, especially for dealerships since there is so little room for profit. (they need to make at least $500 a car to keep the lights on even more sometimes).
Best of luck to ya!
PS: I see this misconception a lot both here and when I worked at a dealership. Paying in cash upfront is convenient yes. However, most dealerships would prefer that you borrow, it allows them to make a referral amount and makes selling accessories, warranties, or cars above your original price range easier. Often I would talk people out of paying cash and instead taking on a payment as it was beneficial to me.
PPS: not all car salesman are evil, please be friendly and open to whomever you work with, they are people just doing their job.
I told them it was too high, and if they wanted to deal, they'd have to wow me with an initial offer.
Their initial offer was around 17. Looked up the car on my phone, found another dealer in the area with the same make, model, and trim that was selling for 15.5. Cross referenced with Edmunds and a couple other sites and that was a fair price.
Told them I'd pay 15.5 or go to the other dealership. Ended up getting it for 15.5. Plus, they paid off another car loan, and gave us 500 for a totaled car. Was more than happy with the deal, and I love the car.
Not sure if any of that helps, but that was my first experience with buying a car.
This is actually from a smaller dealership. It's kind of a wierd situation. It is owned and run by a Church that takes donated cars, which it sells to fund their out-reach program to help the homeless. So on one hand I want to help their cause, on the other I don't have $2k to spend and the car was given to them for free...
Here is the car, and the features listed on the website
1992 PONTIAC TRANSPORT SE
Miles 130k
Vehicle Features:
3 Door
Cloth Interior
A/C
Cruise Control
Tilt Wheel
Power Windows
Power Locks
Power Mirrors
Power Seats
Stereo/Cassette
Alloy Wheels
Automatic Transmission
Engine: 3.8L 6Cyl 130K Miles
My Fiance and I have 4 kids between us, so we need a larger vehicle (6+) I have owned 2 Dodge '90s Dodge Caravans and they are total junk - I did a fair ammount of research on this model and it comes highly reccomended. The fuel injection that is standard on these keeps the engines from blowing out which is a common failing on Caravans.
Seriously, being able to walk away and seeming non-committal until the dealer starts to talk down the price is the GREATEST leverage you have on him.
Needing a car immediately or within a certain time span is one of the worst things you can admit to.
Or you could also say, "Well, considering the job market, you probably aren't selling these as quickly as you like." and "Don't cars that stay on the lot go down in value?" and "I can get it [cheaper similar car/older model] for [lower than your preferred price] and it only has [defect/so-and-so many miles/only 1 owner]" or "I'd like to pay [x amount] and I figure this car has [defect you read about on the net, but you attribute it to it happening to someone you know] and I think if it does happen, (even if dealer says it won't*), that [x amount] should be what I pay for the car and [defect] all together." etc. will attune him/her to your frame of mind.
If he tells you to go buy it in such a way that it seems like he's had enough of being talked down to, tell him you probably will but that he seems like a better/more honest salesman than the other guys and you'd like to give him your business, but it's too hard with that price/pricing plan. *You* don't want to make a cold business decision but the price is standing in the way. You're sure he's a reasonable and the offer of immediate cash for a car that's *taking up space*.
Essentially, give the impression that you're on the fence, but firmly rooted. Yes, I know, real Zen shit.
If he's one of those... faster car salesman, and he's not paying attention to you as soon as you bring up [whatever about the car], just say, "It was nice talking with you, but I have other cars/dealerships to check out." and "I'll let you know when/if you're needed."
Oscillating between appearing absent-minded and somewhat agreeable and then shrewd tends to throw them for a loop. (Mirror the energy he's bringing to the sale)
* = yes, your car won't ever suffer from [public defect], but letting him see that it's still a weighted factor to you is important. He might throw a lower offer if you'd going to buy the car, but are figuring the cost of fixing [defect] into the picture, because you don't want to pay for [defect] on top of your car just on principle and it would really take a load of *your* mind.
If he says that [warranty] covers [specific defect], joke that you'll believe that when you see it in writing. Then... [serious face], I'd really like to have [section of warranty that covers specific defect] clearly in writing.
TL: DR
Why, yes, I do manipulate people for sport.
Good news, that's a GM 3800 series motor. The body and frame will basically rust around that thing before it stops running. :P And since it's a Series I you're not affected by the giant recall they did about a year ago.
HOWEVER
This was a donated car. If it was in good enough condition, it would have been a sold car, probably directly to someone like you who wanted an older but still reliable bigger people-mover. You should be approaching it like a bomb technician with an attitude of "what's rigged to blow the fuck up and cost another dozen C-notes to put back together?"
See that? That entire post? Read it, learn it, love it.
Can trade TF2 items or whatever else you're interested in. PM me.
Since it's not a dealer they probably set their price at what they'd hope to get out of it and are used to people coming in with lowballs to meet in the middle. No skin off their nose if they can't move it.
That is a reliable engine though, if the tranny and suspension are up to snuff and it's clean sounds like a good choice.
On a slow business day, you can sometimes expect a phone call from the associate who will be a little more willing to deal with you.