What is the best method for talking down the price on a new car?

Question

I have been looking into purchasing a new Mitsubishi Lancer Ralliart with manual transmission. I was looking at the pricing online for the model with all the features I want, and it was right price at $20,000. What is the best method for talking the price down, and how low could I go with that asking price? I am looking around $15,000 if that is possible.

Answer 1

Like Mrs. Strain said, except once at Edmunds, under Tips & Advice, you will find an option for TVM (True-Market-Value) which tells you what other people are paying for the same car in your area on average. You can bump that down by maybe a couple hundred if the dealer is motivated at all.

Use this in conjunction with the suggestion to contact more than one dealer and not go in until you have a price. You could say in your email, something like, "I will buy this car from the dealer who gives me the best price under $x."

You can also negotiate using your existing car a trade-in bait but tell them you don't plan on trading it in. Then AFTER they give you the price based on their low-ball trade in value, accept the deal but without the trade-in. When they balk and say it was contingent on the trade-in, threaten to leave, complaining they were trying to rip you off on your trade-in. Go in at the end of the month and waste a LOT of their time before getting to the bargaining table. Some of these options won't work well with the email routine, but you can tweak it to your satisfaction.

Don't forget -- Invoice is not what the dealer pays. It is what he pays gross, but they get bonus money for selling x number of cars, etc. just like when the price you pay is not what you end up paying after getting a cash rebate or incentive financing.

Oh, that's another trick -- let them finance you (they get a cut) but come in a few days later and pay it off. If you don't have cash, do this using alternative financing like through your credit union.

Answer 2

Don't buy from a dealership. You will have to pay state sales tax and on $20,000 x 7%, you are looking at $1400 right off the bat. Then you add finance charges, dealer fees, delivery fees, etc., the $20,000 just went to $24,000. If you find out what you want through a private seller and can get loan through a bank or other financing company, you will pay $20,000. Go to www.kbb.com or www.nada.com and you can go from there and see what the book value is. I have a 2002 Chevy Suburban-loaded. The blue book value on it, when we bought is was about $28,000, my husband did some research on it and found the one that I have now for $19,000. When I say loaded, it has it all-leather, 7 passenger, V8, rear heat and air, tow package and it only had 32,000 miles on it... Now that's a deal!!

If you have to go to a dealership, then make sure that you do all the research that is humanly possible. Don't go to just one car lot, go to as many as you can. Remember that you aren't in a desperate situation and they are salesmen. Whatever you decide, they are getting paid. Make sure to check for any dealer rebates, car manufacture rebates and know for sure the price you are seeing is the correct one. Any dealer can ask any reasonable amount but the bank will only loan you what the car is worth.

Answer 3

I used to work in the Finance office at General Motors. I KNOW that dealers are charged only 1/2 of the suggested retail price on all vehicles. So 50% of the sticker price is profit. They used to give a deal to employees of 10% over cost. I don't think they are quite so generous anymore. Do you know someone who works for Mitsubishi that could get you an employee price? A lot of employees of car companies do this to earn extra bucks. (Hence the not so great deals on employee purchased cars.)

Answer 4

check for even the tiniest scratches or marks on the trim and panels, if you see something that isnt mentioned in the description then your entitled to knock some money off. research any common faults the car might have and ask if these have been dealt with, by using the proper terminology the dealer will be more inclined to drop the price for someone who may be in the trade. dont kick the wheels, it means nothing but check every button, switch and light. when you go through all the checks, offer 29750 (or lower if theres a lot of faults) and work from there. ask if theres a discount on a trade in, even a piece of junk. then buy one if it costs less than the discount

Answer 5

well online is MSRP or manufacture suggested retail price. every car dealership will have incentives and the ability to haggle the price but you need to have a comparible to judge it against. i would call a couple mitz dealers and ask what they are doing for deals. dont agree to anything and dont buy a car at the first place you go. and know th kelly blue book the depreciation schedule and get preapproved for a loan of 15k through your bank it will give you alittle leverage to say well im preapproved for 15k and i want this car. if they can make it work that will do it.

Answer 6

Email the Mitsubishi dealers in your area, let them know exacly what model, color and options you want. Then tell them whoever gives you the best price will get your business.
Dont go to the dealer in person until you have nailed down a price.

Answer 7

Do your homework online, find out what invoice is, and work from there, The dealership is entitled to make a profit, offer 2 to 5 00 over invoice, then let them show the invoice. If you want a better deal ,see if they have a demo (what the managers and upper employees drive ) and make a deal on that.

Answer 8

Car sales is as crooked as it gets.
Use a gun or a knife to scare the bum lmao.
No just kidding you can lie and tell them you were quoted a lesser price at another dealer.
I do not think you will get it for 15k, but you might save a couple of grand.

Answer 9

Look up the invoice price, and offer that. Stand firm regardless of what BS they feed you about upgrades.
Also buy in the last 2 days of the month, there desperate to get there figures up.
I always get them for within a thousand of invoice.

Answer 10

Be nice when you say this, "Just give me your best price." when they come back, "Well thanks, you've been great, but I'm going to have think about it some more." Now get up and leave. When the manager catches you at the door, and gives you that price, then you've pretty much got them at the bottom.