[QUOTE=CookingWithGas]
Correction: The set price isn’t as good as *some * people could do on their own, but better than *some other * people could do on their own. I once had a girlfriend who (before I knew her) walked into a dealership and paid sticker price because she didn’t know any better. Some people aren’t good at negotiating, or just hate doing it.
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Admittedly my experience of selling cars ended before the rise of the internet as a viable sales and information tool. My experience is also confined to Australia; not sure if i’d need to change my strategy for the US. But i think the following is a pretty good method for buying a car that will reduce stress and help get a good price:
[ol]
[li]First, before anything else, work out what car you want. If you’re still undecided between a Civic and a Corolla, or between a Suburban and an Explorer, go drive them and decide which one you want to buy. It’s always easier if you have already made your decision about the car itself, and are just shopping on price.[/li][li]Once you’ve decided on the car, sit down and make a list of the options you want. Make sure you’re very specific. If there’s a choice of engine types (V-6 or V-8), wheel types (steel or alloy, 15" or 17") etc., then make sure you are clear what you want. Also include stuff like color (if that’s important to you), manual or auto, sunroof, etc. And include even the smallest, most mundane stuff, like floor mats or headlamp protectors. You need to know exactly what you want from the beginning, so there are no surprises later.[/li][li]Organize your financing beforehand. I don’t know enough about car financing in America to know whether you can get a good deal through the dealer or not, but i know that, when i sold cars, most people who financed through our dealer paid more for their money than if they had gone to the bank. I guess if the dealer has some sort of 0% offer, it might be worth taking, but read the fine print.[/li][li]If you have a car to trade, take it with you. In my experience, you could always get more for your old car by selling it yourself, but some people don’t want the hassle.[/li][li]Find three dealers (or more; three is a minimum) close to where you live who sell the type of car you want. If it’s a Corolla, find the three nearest Toyota dealers. Go to each of those dealers, present them with a piece of paper listing exactly what you want in a car, and tell them that you would like a quote on this car and this car only. Tell them the quote should include all options and extras listed, as well as all dealer charges and taxes, and that you want to take delivery by [insert date here]. If you have a trade-in, ask them to look at it, and tell them that the quote should tell you the changeover price, i.e., how much money you will have to pay out of your own pocket to move from your old car into your new car.[/li][li]It’s important to let them know (a) that you won’t be buying today, (b) that they will be competing with other dealers for your business, and (c) that there will be no second chances. The dealer who offers the best price first time around gets the deal. Make absolutely clear that you are willing to turn and walk away if they don’t give you a price for the exact car you want. [/li][/ol]
A strategy like this has some important advantages, i think.
It makes things easier for people who aren’t very good at negotiating, because there is no negotiating. It even makes life easier for the salesperson, because he or she knows exactly what they need to do to get your business. While someone like you might force them to make a fairly low-profit sale, it will also be a low-stress, low-time-consumption sale.
Telling them that there will be no second chances heads off the nickel-and-dime price reductions that some salespeople try. Often, they will give you a number, you say it looks too high, so they go and knock another $100 off. And this just continues until you agree. If they know that they need to give you their best deal up front or lose your business, there’s a better chance that they will go “balls and all” (as my old sales manager called it) on the first go.
The key to all this is to be very clear up front that you will walk and not come back if they try any bullshit. If you ask for a quote on a blue V6 auto, they better not come back with a quote for a white 4-cylinder manual.
It’s also worth being clear that you are a serious person who is, in fact, going to buy a car. While a lot of customers get annoyed when the salesperson asks if they’re going to buy a car today, the fact is that the car business sees a lot of “tire kickers,” people who, for some unknown reason, love to spend hours in car yards getting prices and information without any intention of buying a car. It’s only reasonable that the salespeople are interested in working out whether you might actually buy a car, or whether you’re just wasting time, and therefore costing money.
And only do all this once you know you are ready to buy. You not only should be ready to walk away from the ones who play games, you should be willing to put your money down with the dealer who gives you the best deal.
That’s how i would buy a new car, anyway.
Unfortunately, if you’re buying a used car, this doesn’t really apply. The thing that makes buying a new car easier is that all new cars are (in theory at least) identical. A new blue V6 Camry with a sunroof and five-spoke wheels should be the same no matter which dealer you buy it from. Used cars, however, are all unique. They have different mileage, different levels of wear, different options, etc., etc. This makes them less amenable to the bidding-war strategy outlines above.
