Bargaining with dealers - headaches!

[Spokane-Pete]

I've been to 3 different dealers in the last 4 months or so and tried to work a deal but on every occasion they only come down in price $2-300 from full price or make the deal appear better by trying to finance the remaining amount above my offer price. Today I tried to buy something for about $10K but of course needed more to get it done. Dealer wanted $16K but that was full price and were said to really be $13.5K. 'Ignore that sticker' statements. We kept being told they were trying to move inventory to make room yada yada and to make any low offer. So I said $10K. Dealer came back with $15.8K. I said I'm not going back and forth so said $12K out the door and my final offer. Another return with the 'manager' showing me the value claim from KBB and other BS then said only if I add taxes and transfer fees to that. I said my final offer was $12K out the door. I figured/hoped he'd come back with $12.5K but that was truely the highest I would go. Again he left and returned saying it would be a $2000 loss and now wouldn't take the $12K with taxes either. BS! So we walked. It has black leather which I don't like being very hot in summer so I knew I would have to do something with that so another reason not to over spend. This was at a Subaru / BMW dealer and was trying to buy an Outback 6cyl. Couple months ago was the same scenario with a Toyota dealer, and again before that at a Checy dealer selling a Toyota.

Is that the latest trend!? $200 off full price?

 

Peter S

[bjwirth]

maybe the dealer just got the car in and thinks he can get more for it from the next guy who walks in. Since I don't know the specifics of this car you're looking at, I don't know what's a "fair" deal. But just reading your post, I have a hard time beleiving a dealer would drop 4k off his 16k starting price. (of course dropping only $200 sounds a little stingy too).

 

But look at it this way. if I was selling a car i thought was worth 15k, and had an asking price of 16k and someone comes along and offers 12k, I'd tell him to get lost. but if the car is ACTUALLY worth 12k, then I would realize at some point, my asking price was unreasonable and cut my price. IF you really like this car (which it sounds like you don't), then wait a couple of months and go back and offer him 12k. If it sells before then, then that means you were wrong and the car was worth more than you thought. if it sits there, that means you're right and the dealer will come to his senses and "let the car go" at your price.

[Spokane-Pete]

The sales guy said the 'real' price was $2-3K off the posted price which was on a car that wasn't there more than a couple days. He said it was to come down a lot and to make a low offer since it had 92K miles. They only came down $200 so wasn't anywhere near half way or whatever to meet me. They wanted me to come up $5K which is unrealistic.

Peter S

 

 

 

maybe the dealer just got the car in and thinks he can get more for it from the next guy who walks in. Since I don't know the specifics of this car you're looking at, I don't know what's a "fair" deal. But just reading your post, I have a hard time beleiving a dealer would drop 4k off his 16k starting price. (of course dropping only $200 sounds a little stingy too).

 

But look at it this way. if I was selling a car i thought was worth 15k, and had an asking price of 16k and someone comes along and offers 12k, I'd tell him to get lost. but if the car is ACTUALLY worth 12k, then I would realize at some point, my asking price was unreasonable and cut my price. IF you really like this car (which it sounds like you don't), then wait a couple of months and go back and offer him 12k. If it sells before then, then that means you were wrong and the car was worth more than you thought. if it sits there, that means you're right and the dealer will come to his senses and "let the car go" at your price.

[edrach]

I haven't bought a new car since 1988, but at that time I walked out at least 10 times. By the time I got home, the phone rang and the salesman said he had a better offer. I went back and it still wasn't where I needed to be. Walked out again. Ignore all the financing bull, it's just there to confuse you. I had financing arranged through my credit union and knew what my price had to be. After about three weeks performing this back and forth dance, the dealer finally met my offer. Of course my timing was better, it was in November and the dealer had to make room for incoming next year's inventory and nobody else was offering any money on the truck I was interested in. Take your time and keep working it; as long as you show you aren't desperate you have the advantage. If your offered price is too unreasonable, he won't call you back and that tells you that you might be out of a reasonable range. When I picked up the truck at that time, the salesman introduced me to their accountant who showed me the printout on my truck and indicated I had purchased it at $50 under their cost. I think he was just joshing me to make me feel good. Whether or not that was true, I got the truck for the price I could afford and I was happy. Just remember that every month that car sits on their floor, it's another interest payment to their bank. Eventually, that comes into play and they come out ahead if they can get it off their books. If no one else buys it, you might get it at your price. Good luck.

[idosubaru]

go to the library (or order one) and read a book about buying cars (they are typically short) written buy a former car salesmen. good information in their and it really puts into light the tricks they use. if the dealer shows you "their cost", "inventory" or whatever, it's likely a fabricated document that really doesn't mean anything, it's just a tool for them to use. they will never show actual accounting records for a particular vehicle. getting the manager, him showing you top secret papers is all part of the game.

 

newer cars are much easier to negotiate with for various reasons. one being the price is more consistent. with used cars you never know what they paid for it so there is more flexibility in negotiaiting and may be harder to get them to come down depending on the market in the immediate area. dealers have larger profit margins on used cars than new.

[bjwirth]

...car that wasn't there more than a couple days

well there you go... the car has been on the lot only a short amount of time and the sales manager isn't that motivated to sell it.

 

But what's odd is that new car dealer RARELY have cars that have that kind of mileage on it unless it's unique or hot. So maybe the sales manager thinks b/c it has an h6 engine, he thinks it falls in that catagory (i doubt it), thus further explaining his stinginess. Whatever- maybe he's right. like I said before, the market will dictate the price- either you don't appreciate the value of this car, or the sales guy is dreaming.

[edrach]

Sales guys are usually dreaming and posted prices are often BS. Back when I was looking for an Impreza for my wife we went to look at a '93 in Portland on a dealer lot. It was advertised in autotrader for $5995 and I knew before we went looking at it that price was still too high for this year and model. When we arrived, the "sale" price posted in the window was $7995 (REDUCED from $8995!!). When I showed the salesguy the printed ad from autotrader, he didn't believe me and took it to his manager. While he was gone, we took a quick look at the car and it was not even worth the $5995 (shabby condition inside, a few minor dents in the body, and fairly high mileage). The salesman was insulted when we wouldn't even take it for a test drive because of the condition and exhorbitant price. He told us "these are in big demand and it'll sell in no time." Needless to say, we found a '97 Impz two weeks later with lower mileage and at $3995 price on another dealer lot. I suspect we bought our '97 well before that '93 ever sold.

[Lesbaru]

I am terrible at bargaining for anything. Bought my 05 by asking for the Costco price, which is set and monitored by Costco. (I'm not a Costco member, but would've joined if I needed to.) That was $500 over invoice, and $2500 less than the sticker. I'm sure I could've bargained lower IF I'D KNOWN HOW, but I figure it was worth it to have a guaranteed no-haggle situation. They did end up giving me more for my trade-in than I asked, so I was pleasantly surprised there.

 

I don't know if there is any similar program for used cars. Smart Service here in Seattle has a website linked to theirs (it's theirs, too) for selling and searching for cars. Maybe you could try checking that? Google "Smart Service" and hit the link from their website.

[wkoepp]

The dealers here in central Ca are very experienced, I've had the old I'll have to talk to the manager, supervisor, boss, owner, whatever, also the just arrived mystery customer who is really, really interested in that particular car.

Do your homework on the internet and print it all out, take it along with you and wave it around; there's lots of web sites that will help you get a fair deal. Be sure you know your models and what they have loaded into them.

I'll buy a new car only when the next years models are just arriving on the property getting prepped. That helps I think.

I've had a manager tell me we don't deal that way, so I gathered my papers and said call me, you have my number.They called me at 7 pm.

I think it helps to arrange financing somewhere before you step on their turf.

Even after bargaining for a day or two I have the feeling that as I drove off the property with my proud purchase everyone back there was giving each other high fives!