New Car Shoppers?

Question

when you go to haggle with their prices at a dealership what are some tips to get them to bring the price down. And if anyone knows how much they can really take off the sticker price?

Answer 1

Just remember the phrase that pays: "Well, you've been great, can I get your card?"

Answer 2

There is a tricky formula but if you can do it great. The secret is that the dealers can sell a car at invoice and still make a profit because a small margin is built into the invoice price; it's called holdback. You want to start from the "actual cost" the dealer paid for the car.

First, you need the MSRP (sticker) and invoice (what the dealer paid) prices from a site such as Edmunds.com. Make sure you have included all the options you want. Next, go to http://www.edmunds.com/advice/incentives/holdback/index.html and find the holdback rate for the manufacturer (it's a percent of the MSRP). Third, multiply the MSRP by that holdback rate and subtract the result from the invoice price to get the "actual cost". Finally, you'll want to add a 2-3% margin to that "cost" as the dealer's profit--if it's a car that doesn't sell quickly you can aim for the lower end of that spectrum.

If all else fails, use the TMV value from Edmunds.com. The TMV is the average price paid by buyers for a car in a particular area and with particular options and colors--it is almost always between the MSRP and invoice prices. Make this your "maximum" price especially if you'r'e buying a popular car. When I bought a Mazda3 (which is a hot seller) the price quoted was above the TMV value and when I showed them my price they were more than happy to accept it.

Answer 3

How much you can haggle off the sticker price totally depends on the car. If you have a specific model in mind, I could give you more details.

The easiest way to get the best deal is to go to various auto websites and request numerous online quotes. Then, you simple choose the best offer. I listed some sites below.

Another way, which also works (but takes more time) is to call all of the dealers that sell the car in your area, give them your best quote, and see if they can beat the best offer. Always end with the dealerships closest to your home, as it gives them the opportunity to match and it is closest to you.

Also, if applicable, make sure you get approved for financing before you go to the dealership. Many dealerships will make up for the profit they lost when you got a good deal on your car and try to stick you with a higher interest rate, even if you have good credit. If you have decent credit, I recommend your local credit union. They usually have very competitive rates and some even offer extended warranties.

Don't forget to get insurance quotes before purchasing your car. I've seen too many times where people get a great deal on the car, but don't realize they cannot afford the insurance for that car until after the purchase. If you know the car you are interested in, go to your local dealership website, pick the model closest to the one you want, and most of them will have a specific VIN # tied to each car in inventory. Use this for your quote and you have a 'ballpark' figure.

I know this is more than you asked, but hopefully you find it useful. Good luck.

Answer 4

Depending on the car, sometimes the dealer cannot or will not lower the sticker price.
The best thing to do is decide what vehicle you want, with options, then go to Edmunds.com. Input the information and you will get the suggested retail and approximate wholesale prices. You can also request dealer quotes on line, but expect to get assaulted with telephone calls.
Sometimes dealers will sell cars at or below what they paid for them, just to get them off the lot.
Check local ads for deals on leftover 2006 models. Check ads also for 0% financing deals.
When you go to buy a car, you can make any offer you want, to see what happens.
For GM, Ford, Chrysler vehicles, look to knock about 10% off the sticker price, then don't let the dealer sell you any!!!!!!!!!!!! extras.

Answer 5

never buy a NEW vehichle,as soon as you take possesion of it and drive off the lot it decreases in value--- dead serious. also never tell them how much you have to spend or they will try to get every penny, the after market crap is where they make alot of money and extended warranties. if you have a trade in sell it out right before buying your vehicle you'll get more for it. use kbb.com to check out what you should be getting for it. check all values not just trade in value or retail. also you can usually get more car for you money if you buy from a private person than at a dealer. most car companies not dealers already offer incentives which the dealer doesn't like to devulge unless the feel like you aren't going to buy so they go to the manager and come back and tell you I was able to get you another---- off. again check kbb.com (kelly bluebook ) and look for the vehicle you are interested in and the options check out all values print it out and then go shopping.

Answer 6

it is sometimes easier for dealers to include extras for the standard price than take much money off. Extras can add up, floor mats, better CD radio, roof bars, tow hook, etc. Decide exactly what you want and visit more than one dealer. When you negociate, be friendly not aggressive, it is only money and you don't hate the salesman, he is just doing his job.

make sure you choose a car which holds more of its value when you come to sell it. eg choose a "normal" colour , silver, red or blue, not this year's favourite like orange or turquoise. The most money is lost through depreciation

Answer 7

Go to www.edmunds.com!!! I did, and learned all kinds of things about how to negotiate the purchase of a car. They ABSOLUTELY will lower the price from the "sticker price."

Answer 8

Go to http://www.edmunds.com/used/ to find the wholesale value of a used car. Start with that as an offer to the dealer and work your way up until you reach a deal.

Answer 9

Beat them on the face. Play the concussion card.

Answer 10

I have learnt (surprisingly) that if you need finance, if you do the finance through them they can do the car cheaper - even than cash. Which seems wrong, but alas is true.

Goodluck