Amazinz wrote:Because all of the information you need such as the actual cost and the markup needed for the dealership to turn their 3% is freely available. Coupled with confidence and the knowledge that they would rather turn a small profit than none at all and it's very easy. And in my experience dressing poor helps because they're less stubborn. Also, make sure they realize early on your are more intelligent than they are. No joke.
Good stuff. You have to realize that it's a war when you go buy a car. They aren't your friend and they aren't looking out for you. They want your cash, period. This goes for 97% of the dealerships out there. The rare jewel that doesn't act this way should still be treated with caution, especially as the economy turns south.
When you go buy a car, you need to know what that car is worth. Not what the sticker says and not what the dealer tells you, but what it actually cost the maker to manufacture. That's your starting point. Everything above that is gravy. You can come up a few percentage points so the dealership can pay their electric bill and the salesman gets his commission, but your job isn't to put his kids through college.
You have to be tough, you have to be fair, and you have to be willing at any moment to get up and walk out of there. That's the best tool you have, and I've walked out of the dealership on each of the last four cars I've bought. It's amazing how they find "wiggle room" in their "bottom line" after a couple of days of you leaving and not calling. You don't have to be rude, you just have to be direct and tell them up front you're not going to play games.
The one tactic I've seen and shot down immediately is this - they take your "best offer," then write it down and take it to their sales manager, and they'll do this over and over, hoping to wear you down. It's all a mind game. They know you're nervous about spending so much money, so they let you sit in that room and worry, and they're cool doing that five, ten times if they need to. Don't do it. If your sales guy tries that, go with him to talk to the manager. Don't ask him if you can come, just go. I had a guy about halfway to the sales manager suddenly turn around and have a slight conniption when he realized I was right behind him. His manager didn't like it that I was there, but I told him I wanted his final, bottom offer right then and there. He gave it to me, I said, "Thanks," and I went back with the salesman and told him it was too high, got my coat and we left. They came chasing out the door after me and I told him I wasn't going to pay that price, and that was it. A couple days later they called me with a far lower price, but by then I’d already bought the car somewhere else.
The key is, THEY CALLED ME. That’s how much they want that sale. Never forget that you have the money, not them.
There’s more, but I don’t have time right now. Suffice it to say, if you pay too much for a car, it’s your fault and your fault only.