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Currently trying to negotiate a new vehicle and its a mess. I have read and soaked up as much as I can from the web. I'd like to be able to have a friendly conversation with someone in the know on how a dealer works and just how much profit is considered 'fair'
Boker - I'm not in the car business, but would suggest the following that has worked for me.
Find out what the dealer paid. I used edmunds.com in the past. Go in with either the cash (check) or a pre-approved loan. The rule of thumb I used to use was offer them $500 above their cost ($1000 for very popular cars). I've never had it fail. Quite a few years ago I bought my wife a car (popular model). The salesman at the dealership started giving me the run around when I told him what I wanted and what I was willing to pay. I politely asked if I could borrow the phone on his desk. I dialed a dealership on the other side of town and told them what I wanted and what I was willing to pay. The salesman on the phone said sure - come on in. The sales man whose phone I was using looked at me after I hung up and sheepishly said that he could sell me one for my price. I told him that if he wanted the sale, he would have to beat my offer by $500 for his stupidity. The guy across town got the sale.
The best value of course is a used car, but cars are not flying off the lots right now so I'm sure there are deals to be had.
You have to go in with what you are prepared to pay. Don't let them add extras and don't let them get the sales sheet all messy and promise to type it up for you when you pick up the car. I don't sell them but have bought them almost as Crash does. It took me 3 months to get my last truck as they all were pulling bait and switch, showing one with options but trying to sell you one with less for the same amount of money. It actually took a while to find an 'honest' dealer with the truck I wanted for what I wanted to pay for it.
Don't believe the dealer cost listed on the sticker and never ever pay the MSRP.
I'm not in any hurry. Fooled with more of 'em today. Came with in $400.00 but I'm stubborn and tight. My needs are simple, however not many 1/2 ton trucks fall mid-range, they are either stripped for fleet or loaded with every option.
I'll wear one down eventually.
Yes sir, I've joined a car sales person, under cover, as it were. The sales staff aren't real fond of the rebates and hold backs the dealer makes off the back end of the deal. It affects the front end profits which is what sales commission is based on.
What I'm wanting to know is essentially, what is the minimum % over true invoice that is 'acceptable'. They don't seem to want to divulge that easily.
I've sold new & used vehicles enough to tell you that it's a freakin' racket! The Salesman acts like your friend against the "mean Sales Manager;" very similar tactics that's used in "Good Cop/Bad Cop!" But they're both working together! Find out what the invoice is & offer them $100 above that! That way they have to work harder at bringing it back up! Refuse to pay over $300 & DON'T BUDGE! I once saw a 16 year old boy chew my sales manager up & spit him out on a used car deal. He was prepared with the Kelly Blue Book print out! Also, don't trade your old vehicle in; sell it yourself, they rip you off on that as well! If we had the time I could tell you a lot more, but believe me when I tell you that I've seen the dealership (Buick & GMC Trucks) where I used to work sell new vehicles for only $100 over the invoice! When I go onto a car lot I tell the sales person that I'm not their normal "up." They know what that "in-house" term means, as well as a "4 square" & "1st pencil!" Why am I telling you all of this? Because they aren't above screwing over their sales people as well! :cool2:
Quote:
Originally Posted by Sarge47
That was the number I was looking for. Thanks Sarge.
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