I absolutely HATE negotiating with used car salesmen.
I lost my Dodge Dakota in a garage fire, and my insurance is giving my 9[sup]1/2[/sup] k to replace it. So, say I go to a dealer and see a truck I like, and the sale price is $9,500. What should I offer? Is there a percentage to used cars that I can use? I know that right now used pickup trucks are not exactly flying off the lots, and credit isn’t an issue since I’d be paying straight cash. I would think I’m the dream customer. There are a huge number of the type of truck in the price range I want in the area as well, so walking away is no more of a problem than the wasted time.
Any good negotiators out there that want to give me some tips?
Are there a lot of dealers in your area? If you are buying new, let several know what you’re looking for, that you will have cash-in-hand, and then let them duke it out over giving you a ‘best deal’. I’ve had enormous sucess with that.
For used cars, I’ve gotten my best deals on a day which is: end of the week; end of the month; end of the year. If the salesperson is nearing a ‘goal’ (2nd car in a week, 5th car in a month, etc.) they will practically give away a car. I go to the dealership with the $ in cash (if possible).
I always assumed that the dealers don’t want you to pay cash, since they hope to scam you somehow on the loan, or at least make some additional money on it.
I would not discuss how you are paying until you have already agreed upon a price.
There was a segment on TV here (Sydney, Australia) a few months ago where the program engaged a former used car salesman to help out buyers. They had a hidden camera and a hidden earpiece. The amounts he lowballed salesman by were simply astounding,. He would suggest a price, then get the buyer to tell the salesman that that amount was their absolute limit - they had no more money, and people got amazing deals but only because they were willing to stick to the price and walk away if they didn’t get it.
Although not discussing how you want to pay isn’t a bad bargaining technique, it’s those cheapo used car lots that aren’t interested in cash- their prices are also super high, they are there to prey upon those with very bad credit, offering high prices and high % rates.
You aren’t the dream customer. Don’t tell them you are paying with cash. Shop around on the internet and negotiate with the internet manager by email or phone. Don’t go to the dealership until you have the “Out the Door” price you are willing to pay. (Tax, tags, and doc fee included.)
We take cash because any deal is better than no deal, and cash flow is good. However, we make more when we are able to obtain financing for a customer. We are happy to have any deal at all, but we like non-cash in hand better.
Don’t make a lowball offer unless you’re willing to take it home “today.” A dealer has more incentive to agree to a lower price if they’re not worried about you taking that price across town to leverage another dealer. Back when I sold cars this was always true.
I agree w/ the person that suggested offering $300 over book value. The salesman and the dealership shouldn’t be begrudged a little profit.
I wouldn’t worry about lowballing at all. Worst they can say is no. I’d suggest an “out the door” price, tell them you’re ready to buy today but you only have $xxxx. Otherwise you could very well end up paying $1,000 more than you thought once they start adding in taxes, “prep fees”, “advertising fees”, and whatever else. This has worked well in the last few cars I’ve bought, I don’t usually get them to match my initial offer but they get within a few hundred. Be prepared to walk if necessary.
