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Posts: 454
| Just a question for anyone in the know.....
As someone who is in the market for purchasing a new vehicle, how do you go about negotiating? I have been to many dealers looking for price quotes, but they all seem to beat around the bush as to cost and options.
I know they will all tell you to look at the invoice price, but I know that they can sell below invoice and still make a profit. Just how much room do these places really have to work with?
Currently I have been looking at Tahoes and Silverados with the 0% financing for 60 months intriguing me.
I don't need a vehicle, so if the right deal isn't there I won't take it, but I hate driving miles upon miles to a dealership to beat around the bush. I want to know their bottom line, but it is like pulling teeth to get that. Obviously they aren't going to let you know they are willing to move, so......what do you do?
Any suggestions? |
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Posts: 4053
Location: Land of the Musky | I have fournd using the internet to get quotes gets me my best prices. If you are in MN use Morries Auto. They have an internet guy that has beat every quote I have ever seen. Also, if you don't mind used I have another called Poquet auto in MN. No haggle and they have awsome prices and can buy you a vehicle for about $500 over auctions prices.
http://www.poquetauto.com/Index.cfm?Template=caraction.cfm
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Posts: 8864
| asteffes, it's pretty simple actually. I went to 5 dealers before I bought my truck.
You have to show them that you intend to buy a vehicle (not just window shopping) and that you don't care where you buy it. Then you have to be willing to say "no thanks" and walk out if you feel their asking price is too high. If they want to sell you a vehicle, they will work with you. AND, if you walk in with someone else's quote and say "this is what they gave me, what can YOU do?" you are bound to get a better offer. Waving their competition's quote in front of them gives them three choices:
1. Match it and hope
2. Beat it
3. Watch you walk away knowing their competition will get the same and they won't
The guy selling you that car wants the commission, that's his paycheck. Selling it at the highest possible price is best for them, but not if it means not selling it at all.
Edited by esoxaddict 3/19/2008 1:30 PM
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Posts: 454
| Thanks-
Any other ideas or recommendations? |
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| I use to own a car dealership, I can assure you if you show true intent on buying a product "right now" they will gladly negotiate. A new general motors vehicle will roughly have 12% markup from list price to invoice price. From that there is roughly a 7% margine below invoice called "holdback" this is supposed to go to the dealer for booklets,promotionals,etc. on certain vehicles there are promotions from the manufacturer like 0% financing, or a rebate for buying outright. Now keep in mind, if you will be servicing with the dealer, be fair,so he can take care of you. profit is not a dirty word. you go to work everyday just like they do. in fact, most dealers donate a lot of money to organizations in the community. remember everyone wants a piece of the pie. fair should be on both sides of the deal.
P.S. some dealers charge a "doc fee" so know this before you make a offer as to how much that is. a lot of internet sellers put this on top of the final price, be carefull. |
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Posts: 2085
| Negotiate "on the road price" -Example Sticker $35,499 + Tax, title & License ..... "I 'll give you 35K on the road, you work the number however you want Mr. Dealer but I'm not giving you a penny more."
Don't play their game - If a dealer can't give me an answer in 15 minutes - I'm gone.
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Posts: 2323
Location: Stevens Point, WI | I think that if your married, having your wife with you while looking to purchase a new vehicle can also give off "ok, this guy is for real" type vibe. Because most people know, making a decision like this doesn't usually happen without consulting the better half. But this still doesn't mean a salesman should not think your for real if your by yourself. I'm just saying this from my opinion and from my experience working at a local GM dealership is something that will give off a better vibe. |
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Posts: 2378
| Merckid - 3/19/2008 2:55 PM
I think that if your married, having your wife with you while looking to purchase a new vehicle can also give off "ok, this guy is for real" type vibe. Because most people know, making a decision like this doesn't usually happen without consulting the better half. But this still doesn't mean a salesman should not think your for real if your by yourself. I'm just saying this from my opinion and from my experience working at a local GM dealership is something that will give off a better vibe.
Unless your wife says "should I go get the checkbook" as soon as the dealer gives you his first price.  |
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Posts: 2323
Location: Stevens Point, WI | BALDY - 3/19/2008 3:03 PM
Unless your wife says "should I go get the checkbook" as soon as the dealer gives you his first price. :- (
I take it that's what your wife did Baldy? lol |
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Posts: 2384
Location: On the X that marks the mucky spot | NEVER negotiate in the dealership. Take it from a salesman, when you're in their house the advantage goes to the dealer. They know they've got you and often times will try to sweat it out of you. I will usually tell a salesman up front I've got 10 minutes before I have to be _______ and after the 10 minutes I leave and give them my cell phone. Once you're out of the dealership you are in a better position to negotiate price.
Also, being that you don't need a new truck the advantage also goes to you. I had one sales manager tell me: "this is the price, do you want it or not?". I said I don't need it and the truck I have in the parking lot is in good enough shape to run another 2 years. He caved in on the last $1800 after that. It's nice to be able to pound on a salesman once and a while instead of getting pounded on  |
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| Find someone that is a GM employee and have them get you a friends and family discount. Or find out if your company is a supplier to GM and get a supplier discount. These can be very good deals especially now becuase the promo's on the street are in addition to the employee or supplier discount. |
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Posts: 5874
| Merckid - 3/19/2008 2:55 PM
I think that if your married, having your wife with you while looking to purchase a new vehicle can also give off "ok, this guy is for real" type vibe. Because most people know, making a decision like this doesn't usually happen without consulting the better half. But this still doesn't mean a salesman should not think your for real if your by yourself. I'm just saying this from my opinion and from my experience working at a local GM dealership is something that will give off a better vibe.
I couldn't disagree more. You shouldn't comment on things you have no experience with. My wife has never been with me when I purchased my new trucks. Heck, on her cars, she would pick them out, then leave me to get the deal done. The salesman got to meet her when we picked it up. Certainly wouldn't have helped if she would have been there in either case. In fact, it would have been a hinderance, as she gets impatient when I am negotiating. I know what I want, and I take a hard line to get it. She starts to feel sorry for the salesperson, and begins to take their side, just to get it over with.
Maybe it's the way I approach it, but there has never been any question whether I was a serious shopper when I went in to deal on a vehicle. Also, I don't need to consult the wife when I want to make a vehicle purchase. She knows I'm not about to buy anything major without good reason, so there's no problem.
When I buy a vehicle, I research what I want, and the options I want. Invoice pricing, dealer holdbacks, incentives, and other programs are readily available on-line. Determine what your price is, and give that number to the dealer. If it's a doable number, he will not let you walk out the door. Hold fast, and if he let's you go, then you will know you will have to come up some. He will give you his bottom line price before you leave the premises. If it's too high, take your number to anohter dealer. Do the same, and see if his bottom number is better, or closer to yours. If so, then you can decide to buy, or walk away again.
Now, for me, if it's a GM vehicle like the wife's latest car, I get empoyee discount, so there is no haggling. The price is set, less programs. But if it's a Ford like my last truck, I will find out what the GM pricing is, and go to Ford and have them price a comparable vehicle. I let them know I get GM employee discount, and they give me pricing comparable to a Ford employye plan. Works good for me.
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Posts: 719
| I've been in the car business for 25 years........this is the most entertaining thread on a musky board ever. |
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Posts: 1758
Location: Mt. Zion, IL | kinda funny shep that you get an employee discount on a GM but dont buy one.... |
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Posts: 5874
| Not so funny. The discount is a family deal. Plus I had Ford trucks before that discount became available to me. Still like the best truck built, 32 years straight. But, if I had to pay an extra $6K+for the Ford, I believe you'd see me in a Chebby or a GMC truck. The wife drives a Chebby car. Used the discount on that one.
Edited by Shep 3/20/2008 7:27 PM
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Posts: 65
| Muskie Treats - 3/20/2008 8:55 AM
NEVER negotiate in the dealership. Take it from a salesman, when you're in their house the advantage goes to the dealer. They know they've got you and often times will try to sweat it out of you. I will usually tell a salesman up front I've got 10 minutes before I have to be _______ and after the 10 minutes I leave and give them my cell phone. Once you're out of the dealership you are in a better position to negotiate price.
Also, being that you don't need a new truck the advantage also goes to you. I had one sales manager tell me: "this is the price, do you want it or not?". I said I don't need it and the truck I have in the parking lot is in good enough shape to run another 2 years. He caved in on the last $1800 after that. It's nice to be able to pound on a salesman once and a while instead of getting pounded on :)
I would agree with m/ treats with that it is nice to pound on them instead of gettin pounded on. Just recently purchased a vehicle and we had the salesmen with his face to the case as he said. With the internet and other avaiable options a car salesmen should know that we are not stupid (for lack of a better word) |
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Posts: 1270
| DO NOT BRING YOU WIFE TO THE NEGOTIATIONS! Sales trick #1 is to try to get the husband and wife together, then they can work you against each other with lines like "wouldn't he love that truck?" Have you ever seen a Kirby salesman work? They don't even want to talk to you unless you are both there because they know the close rate is higher when they are together. |
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Posts: 2091
Location: Stevens Point, WI | I think it's pretty silly to buy a new truck. Why take the hit right away? There are many really nice used trucks out there that are more than adequate for the job. I would seriously look at a Tundra. You can't beat it for reliability and resale. |
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Posts: 5874
| When you drive them as long as I do, it's ok to take that hit on a new vehicle. I've bought 2 new Fords. An 83, and a 97. Just under 500,000 miles. They each paid for themselves a couple times over. Piad #10,600 for the first, and sold it after 14 years for $4200. I expect I'll get about $5000 for the present 97 when I sell it. Now that's resale. |
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Posts: 2427
Location: Ft. Wayne Indiana | I get a new(er) truck about every 2-3 years. Two things to remember when you are ready to trade them in or shop for new one.
1. Trade in your vehicle before you "have to".... I traded in my 2004 Ford E-350 with only 40,000 miles on it. It is obvious that I didn't NEED a new vehicle, but I wanted a vehicle. If you have a NICE truck to trade it without a zillion miles on it, your going to be able to get what you want. The sales man knows that you don't NEED a truck and that you simply want a truck. It's all about them at this point...do they want to make a sale, or do they want you to drive away in your perfectly good vehicle...
2. Don't be UPSIDE DOWN on your vehicle when you trade it in. I pay an extra $50-100 a month on my trucks, that way when I trade them in, I am not upside down.
I love shopping for vehicles, just don't put yourself in the position where you NEED a vehicle or then they got you right where they want you!
Edited by MikeHulbert 3/23/2008 9:35 AM
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Posts: 79
Location: S.E. Wisconsin | What about used cars? Or slightly used? Same tactics work or is it a different ballgame, looking at getting into a couple year old newer model because I only put on about 3 or 4 k a year. |
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Posts: 454
| Thanks guys -
I ended up purchasing a 2008 GMC Yukon......
Thanks to all of your advice, used edmunds.com a lot to find the TMV (true market value) and was able to get a deal done for under invoice.
2 reasons I went new (this is my first ever NEW vehicle) 0% financing and I had 3,100 on a GMC credit card that I could apply to new vehicles.
Even if I bought a nice used vehicle, by the time I paid 5.9% interest on the loan, my payments were getting closer to the same for a new.
Thanks again,
Tony |
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