When do I negotiate?

Question

My husband and I finally found a car we want and can afford. It isn't on the lot yet...the sales person said it is coming on Nov 15. We are going in on Monday to leave a down payment so once the car does come in, it's ours. Now my question is, when do we negotiate the price? Before we leave the down payment or when we come to do paperwork on the 15th? He said all of the paperwork will be done on the 15th but I don't want to leave a down payment if that locks in the price. We are planning to negotiate with him.

I have already figured out the invoice price and the max price we will pay for the car.

Answer 1

Before you put any money down or sign anything, negotiate the price.

Answer 2

I am assuming this is for a new car. I don't know why you would leave a down payment without agreeing on the price? How do you know you can agree on a price? I would first want to know I am buying the car before leaving the down payment.

As far as negotiating, the dealers try to negotiate from the MSRP, but you need to find out the dealer cost. They have services online that do this and it might cost you $10-$15. For example, if the MSRP is $20,000, they might say they'll give you 10% off and you can have it for $18,000 and you'll think you're getting a good deal. But if the dealer's cost is $15,000, you can offer them $15,500 and tell them this is a fair price and you are still making a profit. The dealers do everything they can to try to confuse you so they can trick you, so you have to watch out when you negotiate. They have no scruples. When I bought my car, it took about 15 minutes just to get the dealer to agree on the MSRP, because she was trying to use a slightly higher priced model with other options that wasn't the car I was buying. Also, they try to make you wait because this is supposed to get you upset and make you agree with them faster on their rip-off price. So you have to not let that bother you and just bring something to do with you while you are waiting.

If you are financing or leasing, they try to trick you by negotiating a monthly payment rather than the price. Don't fall for this. No matter how you are paying for the car, even if it is a lease, you have to negotiate the price first. Once you get that settled, you can negotiate the interest rate - don't let them confuse you by getting into a negotiation about monthly payments - they can offer a lower payment but at a higher interest rate because the loan is for a longer term. You can always calculate the payments from the interest rate on your own to know if you can afford it.

I would suggest getting pre-approved for a bank loan. You will probably get a lower interest rate than from the dealer, and at a minimum this gives you more flexibility in the negotiations, because you don't have to take the financing from the dealer. Even if the dealer has a special interest rate deal, sometimes you have the choice of the low rate or a rebate, and if the bank's rate isn't too high, it might pay to finance with the bank and get the rebate.

Another thing they try to do is rip you off by trying to get you to pay for dealer (not manufacturer) add ons, like rustproofing, a car alarm, etc. Some of these are complete rip-offs and the other things can be done elsewhere for a lot less money.

Anyway, there are plenty of books on how to negotiate for a car. I got a good deal on my car by reading a book on this, being firm and not falling for any tricks, and finding out the dealer's cost in advance. I would suggest that before you rush into anything, you read up on how to do all this. It can save you thousands of dollars.

Answer 3

Once you put a down payment down, a set price has been made. You want to negotiate things BEFORE the down payment is made. Here's what you do:

A couple days before you go to make the down payment, go to the dealership and have "Second thoughts." State concerns (they don't have to be true) and things about the car. Let it slip in the convorsation how much the price is, and if you're really willing to pay that much. The salesmen will become worried that you won't want the car, and the negotiation process begins.

Two rules to live by when negotiating:

1) EVERY offer you make is too generous.
2) EVERY price they state is too high, and needs to be lowered.

A couple tips:

- If things aren't going your way that day, leave the dealership! After they make a price offer, get a frustrated look on your face and say you have an appointment or something to go to. Be obvious, but not to obvious, that you don't have an appointment. This will make the salesmen pee their pants in worry.

- Go back in a day or two. More than likely, the price will already have dropped without you even being there! If it hasn't, say something like "I've thought about that offer you made and I'm afraid that it is too high for my interests." This should make them lower it some, or make a better offer.

- For every offer (except the one you want to accept) appear frustrated. Don't say it, but get that look on your face which shows the salesmen that they are wasting your time. Sigh, move around in your chair. Appear uncomfortable and when they offer something high, roll your eyes slightly, or show some other form of agitation for them.

- Keep this in mind: The salesmen work on commission. They want to sell you a car at any price they can afford, which is almost much lower than they ask. Like it or not (for them that is) they NEED to sell cars to eat.

- Go near the end of the month. Car dealerships have quotas and deadlines they have to meet. Near the end of the month, dealerships are usually more laxed to lowering the price, and ease the bargain process. Going near the end of the year doubles this bonus.

- Choke or laugh at offers. If a high offer is make by the salesmen, laugh in a quick outburst, like you would if you spit milk out of your nose. Choke like you found something hard to swallow. This makes the salesmen feel stupid and know that you won't be accepting any high offers anytime soon. *Use this last or in last resort. Sometimes this can offend people and make the process harder, or even make them loose interest in the sale.

- Know the TRUE price of the car and all dealership costs that are added in to crank up the price.

Good Luck!

Answer 4

Set the price before the 15th.

Best answer. Don't negotiate. Figure out what the best price is from consumer reports and other car pricing sites.
Call dealers in your area and ask for the best price. Then get a internet quote from a dealer that you haven't called. Figure out what your will to pay at that point. Then no negotiation. Walk away if they can't give you that price. Dont pay for any addon packages or services. No extended warranties either.

Buy the car with the options you asked for at the price you have on paper and anything else ...walk away.

Good Luck

Answer 5

I suppose that as you put a down payment you lock the car thta you will be purchasing as well as the selling price. So must negotiate first. Oh and may be before you sign the papers check if a price is mentionned on the paper. If so you must negotiate before.

Answer 6

Do not give them a cent. Only when you see the car, read the paper work very carefully should put down some money if satisfied. Be careful they do not give you a "worksheet" with numbers and terms. They may change the info when they prepare the final contract. Twice I have had them change the info. They apologized re the "error" but I never believed it was an error.

Answer 7

do it before you make the final deal and dont leave any money if he wont deal go out the door to another dealer they are starving for deals now and you should get what you want to many dealers hang tough and get them in your pocket not you in theres.get on line also to some of the sites like edmunds.com or others about dealing with car people will give alot of info on dickeren with the car people good luck and hang tough get what you want

Answer 8

Don't give any money as long as no documents presented. Even has a documents take a long and investigate before making any
deal. Although it is a brand new car, has no assurance yet if that is brand new nor smuggle.

Answer 9

You should have a price set and agreed to in writing before you turn over any money.