How to negotiate at a dealership?

[fishinfiend]

I am looking at buying a new truck for the first time in my life. I have been reading a few websites, but I was hoping you guys could give me some tips. I am looking at a Toyota V6 Prerunner w/ access cab.

Is there a best time of year to buy?

How much below MSRP?

How to find dealer's actual cost?

What costs are bogus on invoice?

Any help is greatly appreciated!

Thanks

[Tokyo Tony]

Especially if you are financing or leasing, the dealerships can go below invoice. Don't let them tell you otherwise. One of them tried to screw me this way.

You should make it very clear that you're "shopping around" to different dealerships so that each one knows it and each one is fighting for your business. That means you'll end up paying less.

A good idea is to say that you don't want any BS - "Give me your absolute lowest price so I can go down the street to X dealership and compare. If they offer me a lower price than what you offer, you will not hear from me again." That way they will be less likely to give you a price anything other than the actual lowest they can offer.

Do your research - there are tons of websites about this, and I even recall one that shows exactly how much people in your area paid for such and such car recently.

If you feel like the salesman is trying to screw you, he probably is. Just go somewhere else. I just got a new car a few months ago and the first dealership I went to was total scum - it was unbelievable. They tried to pull every single trick in the book and I couldn't even get them to give me straight-forward numbers without them forcing me to test-drive, etc. Needless to say, I ended up elsewhere. The other one I dealt with was really easygoing and pressure-free. I would actually rather pay more to deal with them than go elsewhere, even though they also offered me a lower price. The first place actually used the line, "So what is it gonna take for you to walk out of here with a brand new car, TODAY?" - This was after I repeatedly stressed that I was not going to make a decision that day. It was pretty pathetic.

Good luck  

[atx_newbie]

You can guarantee you will be asked:  "What kind of monthly payment do you want?"

When they ask you that, DO NOT ANSWER.  A dealer has a lot of tricks available to get you that payment, but you'll end up on a 15 year loan or something crazy like that.

[Gatorbassman]

1. Learn the Lowest Cost. This includes current, national, regional, local rebates, unadvertised incentives and holdbacks.  

2. Learn the Invoice Price, Sticker Price, Invoice and Sticker Price for all factory installed options and packages. (www.edmonds.com)

3. Play the Game - Don't be in a hurry to get a car. If you don't get up and leave the dealership at least twice you aren't trying hard enough. Make them call you and ask you to come back.  8-)

4. Don't pay for things like windshield etching, undercoating, rustproofing, fabric protection, extended warranty, etc.

5. If you have a trade-in or a down payment DON'T EVEN MENTION IT until you've agreed on a price for your new car.

6. Know what your trade-in is worth.

For a small fee ($14) Consumer Reports has a service you should take advantage of. Just call them a 1-800-225-9900 They will need the year, make, and model of the new car and the same info on your trade-in. Trade-in info is an extra $12 bucks.

[Gatorbassman]

A good idea is to say that you don't want any BS - "Give me your absolute lowest price so I can go down the street to X dealership and compare. If they offer me a lower price than what you offer, you will not hear from me again." That way they will be less likely to give you a price anything other than the actual lowest they can offer.

That's a great Idea. You can also take this a step farther and call a dealership that is an hour or so drive from your house and tell them to make it worth you while to come down and talk to them. Make sure you give them your phone number early in the conversation so they can call you back after you hang up on them.  

[Marty]

I agree with most of the advice here. Do your homework. When negotiating and the sales rep says that's the lowest he can go, just say "thanks, can't do it" and walk away. You might hear your name called before you're out the door.

And don't forget, because of the lousy economy making it a buyer's market, you should be able to strike a better deal than you would under more normal circumstances.

[FishingPirate]

Alright, you'll have to start off by "making him an offer he can't refuse" like cutting one of his animals heads off(preferably horse) and putting it in his bed. Soon you'll get a big freakin bouquet and a note congratulating you on the deal you've secured. That's what's up.

[retiredbosn]

The very and I mean very best way is to walk in the dealership, say in a loud voice "Who hasn't sold their quota yet?", the poor sob who is in danger of loosing his job is the guy you want.  Then as you go through the process and the guy who comes in the office to make you mad, tell him that you know that he is the "heater" and that it isn't going to work and you want to talk to the person who makes the final decision, once you are in front of that person is the time you will finally get the best deal.  If you do not know what a heater is or have never had experience with one, you haven't got the best deal.

[Bassn Blvd]

Buy/apply over in the intranet.  I saved quite a bit this way and the dealership was only 7 miles from my house.

[jimmieO]

I absolutely second the sentiment of "don't give them a monthly payment target."  If you tell them you want to be below 300, they can find a way to get you below 300 in a truck that should actually be below 250..etc.. When I buy, i use cars.com just to see what stuff is selling for. There are some really awesome deals on some lightly used trucks at this point.

[Chris at Tech]

www.carbuyingtips.com

When you walk into a dealer, have you research and notes with you so they see you're serious and that you're not an uneducated doofus

[Eddie Munster]

Go on a rainy night at the end of the month with your financing already in hand (Credit Union, etc...).

I've been buying used for awhile and I find a vehicle I'm interested in online at autotrader.com or autoextra.com and start gathering info. I find out the trade in value from Edmunds and work from there. I'll offer them trade in value for the vehicle knowing full well that the dealership most likely didn't pay full trade in. Usually I pay a couple hundred over trade in value on the vehicles I buy.

These days though, the difference between new and used may make buying new a little more appealing.

[Catt]

Ask to see their dealer invoice and then tell them you will give them $100 over that

[key chain bass guy]

I was told that you should get quotes through email from ten dealerships or all dealerships within 90 miles, which ever is greater.  While you may have no intention of going 90 miles to get a car, you can use that quote to negotiate at your local dealership.

[tyrius.]

Do some research on edmunds.com.  That site will tell you the dealer's invoice costs and what other people are paying.  It's a very good site for finding car buying info.

Also, email all of the dealers to ask for quotes.  They'll typically start out much lower and many times just give you their lowest price right off the bat.

[Pond-Pro]

There has been a lot of good advice, but one thing has not been mentioned yet. In order to save the most money when purchasing a vehicle, try to use the 100% down method. Then you don't have to worry about payments.

[bigfruits]

know exactly what you want and average prices

go after the new models for next year come out

when they wont go any lower, tell them youre going to check out a few more dealers and start to walk out.

[Eddie Munster]

I walk into a dealership with my financing already set. 4.5 percent from Credit Union for a used vehicle is pretty good. You let the dealerships run your credit and sometimes they'll run it a dozen times. I've walked out of places that wanted my social despite me telling them numerous times 'I have my financing already'.

One other tip; if you're car shopping with someone tell them not to say one positive thing about the vehicle; only negative things. 'Color isn't very appealing, looks blocky, etc..' The wife knows this already and once we test drive it, she heads to the waiting room while I negotiate the price. The looks on the salesman's face always cracks me up when they see they will be dealing with me alone.  

The Best time to buy a vehicle is when you don't need one. Then you can just get up and walk right out.

[atx_newbie]

How about any tips for selling a car?  By tips, I mean the entire process, I've never done it before, and I just listed my car for sale today.  Do I have to pay any sales tax, how do I get a bill of sale, etc...?

[fishinfiend]

Thank you guys so much for the advice! I know someone in Atlanta who works at a Toyota dealership, and he is going to send me a copy of the dealer's invoice. If I can get it under 18k, I may make a move.

I don't know if I can make it another summer without A/C

[The_Natural]

Thank you guys so much for the advice! I know someone in Atlanta who works at a Toyota dealership, and he is going to send me a copy of the dealer's invoice. If I can get it under 18k, I may make a move.

I don't know if I can make it another summer without A/C

Cool...sounds like you are set.  I sold hondas for two years in college, and agree and disagree with some of the advice.  Just be aware that a lot of people have a 'buddy' that works at a dealership.  Every dealership pays the same amount for the cars, and your buddy as well as several others would probably be willing to do 'invoice' on the car itself.  However, this doesn't cover accessories.  This is how dealerships make their money.  $300-$500 tint, fabric and paint coatings (TOTAL B.S.), $800-$1500 spoilers, and any other accessory you can think of is ridiculously marked up.  Good luck....

[SirSnookalot]

The salesman only writes the initial deal, then it's up to the sales manager to approve it or not, many times he will come out and beat your brains out for more money.  They work on what is called a par system.  They have their own number in mind and will not sell for less, despite what the consumer thinks.  I have a couple of friends(knew these guys back in high school) back in Michigan that own dealerships and they don't work cheap.

I'm looking myself now for a new lease, I lease either 24 or36, 39 months are popular as they are about $30 mo less. So many of the internet deals are only come-ons.  When it's too good to be true, then it's questionable.

So called "hot cars" don't come with deals, only the less popular cars.

In this environment your best shot is a dealer that could go under, he's looking for cash flow.  Many will waive acquisition fees, security deposit, extra miles.

I always purchase for my wife as she likes to keep them a while.  Some of the manufacturer rates are excellent now, why would you pay cash if you can 0% or .9% financing?  I'd buy only new, better financing ,longer terms and better warranty, exception would be a factory rep car or a car coming off lease usually lower mileage and pampered cars.