I am looking to buy a new car. My friends told me just to email the
dealers with my expected drive out price(taxes, title, etc) up front
instead of just negotiating on the price before all the taxes, fees,
title, etc. This would make it easier from what they've said. The
question is this a good idea or do dealers don't do this? This sounds
like i would have to calculate the price of car after coming up with
drive out price.
My other question is financing. The dealerships have been providing
great interest rates compared to the banks, credit unions. Is it
possible to negotiate on a rate from dealership if my credit is very
good and the rate they offered is not to my liking or is that usually
etched in stone?
Thank you.
zcarenow@yahoo.com wrote:
> I am looking to buy a new car. My friends told me just to email the
> dealers with my expected drive out price(taxes, title, etc) up front
> instead of just negotiating on the price before all the taxes, fees,
> title, etc. This would make it easier from what they've said. The
> question is this a good idea or do dealers don't do this? This sounds
> like i would have to calculate the price of car after coming up with
> drive out price.
I think this can be a good strategy provided one thing: you do your
research first, and you know the right number. If your number is too
high, they're going to just say "yes" right away, and you'll have
gotten a non-optimal deal. If you number is too low, everyone is
going to say "no", and if you don't change strategies quick enough,
you'll have called all the dealers around and they'll all be on to
your game. In other words, if you have to call a dealer back after
saying, "I won't pay more than X dollars," then they're now in a
position to know you are willing to pay more than X, because
otherwise you wouldn't be calling back.
Anyway, having said all that, I have a friend who bought a car using
exactly the strategy you're describing. She was buying an economy
car, didn't what options were on it, what color it was, or anything
else (except that it had to be a stick shift), and had determined that
$12,000 was a good price for that car. So she just kept calling
dealer after dealer asking if they'd sell her that model for $12,000,
and if they tried to negotiate a higher price, she'd stop them and
basically say that it was a yes/no question, and if the answer was
no, she was going to call another dealer. I've forgotten the exact
details, but I believe she called 10 or 15 dealers and got a bunch
of responses like "no, we can't do that" and "we won't do that, and
you won't find anyone else who will either", until she eventually
got one that said "sure", and so she bought the car from them.
On a side note, that car now has 315,000 miles on it and she's
still driving it. When you spread the initial cost of the car
over the number of miles, it's less than 4 cents/mile. :-)
> My other question is financing. The dealerships have been providing
> great interest rates compared to the banks, credit unions. Is it
> possible to negotiate on a rate from dealership if my credit is very
> good and the rate they offered is not to my liking or is that usually
> etched in stone?
I've never gotten a loan from a dealer, but I have a few comments:
(1) According to everything I've ever read, you should agree on a
price before even TALKING about the loan. The oldest trick
in the book is to take away on the loan what they give on the
price, or vice versa. It's a method the dealers use to hide
the numbers and confuse the issue. By agreeing on one thing
before you even discuss the other, you're able to compare
the loan they're offering you with a loan offered by a bank
or credit union, and they have to compete for the loan on a
level playing field with other potential lenders.
(2) Everything is negotiable. Especially at a car dealership.
When they tell you it's not negotiable, they're LYING.
At apartment complexes, leasing agents are trained not to
negotiate, partly because the property management companies
are afraid of Fair Housing Act lawsuits. Nevertheless, I've
managed to talk apartment people down on the rent at least
twice. When I bought a computer years ago (back when all
computers were around $1500 at least, and some were $3000),
I talked to the computer dealer down by about $250. The
point is not that I'm a great negotiator (I'm not); instead,
it's that in many situations where things are supposedly not
negotiable, they really are. A "no haggle" policy is really
just a way of saying, "If you hate haggling, come to our
store, and we'll help you solve that problem by charging
you full price."
One final piece of advice, just in case you haven't dealt with
car dealers before: they are going to play hardball. Prepare
for emotional manipulation on a scale rivaling that of the
craziest person you've ever dated. It is possibly going to be
bad enough that it is disorienting and confusing, and you may
find yourself wanting to just get it over with just to get out
of there. Preferably you never get to this point because you
shut them down and take control of the situation before they
get the opportunity to control it, but if it does get to this
point, stick to your guns and don't let them wear you down.
- Logan
You guys/gals are awesome. I will take your advice and responses to
heart! I really appreciate this!! Printing out this thread right now!!!
On Mar 3, 1:44 pm, skark...@gmail.com wrote:
> A new car is a big ticket item. So, expect to spend some time or
> expect to pay little more.
> I wouldn't suggest telling the dealer what you are willing to pay.
> Here are the steps you need to take:
> 1) Decide which vehicle and what options you want. You have to
> finalize this... otherwise, everything becomes hazy at the time of
> purchase.
> 2) Do your own research (Edmunds) and determine the price.
> 3) If you know of anyone who has the same vehicle, ask to see the
> receipt. If not, find a relevant newsgroup and request for the price
> people have paid. Compare the price with Edmunds' and document the
> lower price for the base and for each of the options.
> 4) Invite quotes from 4 or 5 dealers. Tell them exactly what you want
> and emphasize that you don't want anything else unless they give it to
> you for free.
> 5) Pick the dealer that gives you the lowest quote. If the total price
> is less than your research, go ahead and buy. If not, ask if they can
> beat your research amount.
> 6) Visit the dealer, but be prepared to leave empty handed. Decide in
> the first 15 minutes whether the dealer looks like he'll honor the
> quote or is he going to add more costs.
> I personally would let go of $100 or so if that meant less haggling
> and less heartache and resulting in time savings. You have to decide
> how frugal you want to be.
> After you make the purchase, don't go out of your way to find out if
> you paid too much.
So don't come up with drive out price? If i don't , i would think the
dealer would add more fees to the car that would drive up the drive
out price which is the reason i wanted to come up with a drive out
price to begin with.
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> dealers with my expected drive out price(taxes, title, etc) up front
> instead of just negotiating on the price before all the taxes, fees,
> title, etc. This would make it easier from what they've said. The
> question is this a good idea or do dealers don't do this? This sounds
> like i would have to calculate the price of car after coming up with
> drive out price.