How to What the Dealership Doesn't Want You to Know: Part 3 of a Car Buying Series

In the previous two articles in this series, we've discussed new car pricing, and how to shop for a new car. Now we're going to delve into the intricate dance of the haggle. Contrary to popular belief, haggling is a great way to test your whit, and save you a little money. When you're done with this piece, you will have educated yourself on a subject that many find intimidating. Knowledge is power, and knowing the cards a dealership plays before you show your hand will put you in a much better spot at the negotiating table.

Instructions

Difficulty: Easy

1. A dealership has three lines of defense: The salesman, the sales manager and the guy in finance. They work as a team to squeeze the maximum profit out of every sale. We will cover each one's tactics, and how to defend yourself, in detail in separate articles in this series.
2. Some cars really do sell at the sticker price; it's very rare though. One recent example is the Honda Fit. They weren't being manufactured quickly enough, so dealerships were getting Manufacturer's Suggested Retail Price or better. It took this author a lot of haggling to get the car at the sticker. That is very unusual though. Your research will show if a particular model is popular; if you visit a lot and a sea of the same model of car greets you, there's a safe bet that they aren't at a premium. Another way to test this is to consult the AAA car buying service. It's free, and you can get a good idea as to the popularity of the car you are considering
3. Dealerships like to add "Clear Bras", detailing, coatings and tint because they are almost pure profit, and there is no way remove them. Avoid dealerships that add these things, as they are usually less honest. One way to work around these extras is to watch for your car coming off a truck on a Sunday, or look for it in the dealer prep lot. These cars are easy to spot because they still have the white factory shipping material on the wheel caps and hood. Since the dealership hasn't had time, the add-ons won't be there.
4. Car dealerships want you to test drive. The test drive attaches you to a vehicle emotionally, and is a very valuable tactic in the salesman's arsenal. Most dealerships have a return policy. As long as you don't go over a certain mileage, the car may be returned. Use this time as a test drive. This way, you aren't wasting a salesman's time, and you aren't getting prematurely attached to a car.