Step1
Do your homework and decide on the car that YOU want and stick to it! Do not let the dealer persuade you on something else that he/she is going to make more money on.
Step2
Getting back to the homework. Grab a Consumer Reports magazine at your grocery store or just look at it while walking through the store to find out what the best car for you would be. Next, go to a few lots and take some test drives to see what kind you want. The reason I say a few lots is because you want to get the best service and support AFTER you actually buy the car.
Step3
Now find out what the dealer payed for the car by looking at Kelly or Edmunds and finding out the MSRP (Manufactured Suggested Retail Price) of the vehicle. If the dealer paid $14,000 and they are selling it to you for 21,000....THEY ARE RIPPING YOU OFF!! GO somewhere else..
Step4
Ask for Dealer Incentives and Rebates. I will tell you that the rebates could be possible to get but the incentives will not be and the dealer will pocket it if you do not ask for it up front.
Step5
Now while looking through Edmunds, check out the current Holdbacks on the vehicle of your choice.
Step6
Okay... now let's add the data together.
Let's say that you have decided on a Hummer with a sticker price, including all options, of $40,000 plus $1000 for delivery, . Your research comes up with the following information:
Dealer invoice $38,000
Holdback of 3% of MSRP - 1,200
Hidden dealer incentive -1,000
Delivery 1000
Actual cost to the dealer $36,800
Step7
Choose the dealer by calling the dealership and asking what his CSI (Customer Satisfaction Index) score is. If it is good then he/she will tell you but if they give you the run-around go somewhere else.
Step8
Now when dealing with a salesperson if they ask to see a "good faith" check or they will not negotiate....head for the door and I guarantee that they will quickly change their minds. LOL!!
Step9
Some dealers will try and give you a lowball price and then jack it up when you come in to the dealership. This is clearly unethical and against the negotiation rules. Go over each individual option that you have chosen and if that does not flush out the lowball ask to get it approved by the sales manager...this should flush it out and if it doesn't, report them to the Better Business Bureau.
Step10
Do not buy add-ons such as: undercoating, scotchguarding, paint sealant, dealer prep charges. These are merely profits for the dealer and not any better options for you.
Step11
With all of that said, just relax and let all their tactics and BS roll off of you like water on a duck's back. Do not leave until you get a good deal...even if it takes hours. Then if they still refuse tell them you are just going across the street to the nearest dealership. This tends to get them going!!
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Comments
torque63 said
on 4/29/2008 You can usually take 10% off the sticker price right off the bat, don't listen to "If you don't buy it now..." BS and go home and research the vehicle you are interested in.
mattcastle12 said
on 4/6/2008 Excellent... this is a perfect SOP for a first time car buyer. One tip, I prefer to negotiate online with multiple car salesman via email so that I do not fall for the many tactics salesman will use, while playing them off one another for the best deal. It could also work well for those who do not negotiate well in person.