Comments on How to Negotiate a Price and Buy a New Car

Do your homework before you go to the lot. Consumers Magazine is the best, particularly the April issue. Do not ever tell the salesperson what your monthly payment budget is. Believe me--he will make it work, but you will pay too much or for too long. Get the car checked out before you sign anything. Buying a used car is smart, because of the huge depreciation you have with new cars, but get some sort of warranty from the dealer if the vehicle no longer has any factory warranty. A warranty is not the same as an extended service agreement. Buy a $25 Carfax before you sign. It will tell you how many previous owners, if it came from out of state (maybe a former salvage), if it was a previous rental. We have found over 90% of the time, leases are great--for the dealer, not the consumer. Get all promises in writing. Oral promises are worthless.

I believe in treating all people with respect up until they stop treating me with respect. The guys making those comments are not treating you with respect. They have product to sell and want to maximize their profits/commissions. The stuff these guys are pushing in these comments are designed to do just that, not help you. The first thing you should do is find out what the base value of any particular car is, in detail, which means finding a source that will quote you a value for your area. Consumer Reports is the most reliable source for this. It also provides guidelines for fair markup. All the rest is games.

I've been selling cars for 3 years at a dealership that does a new, used, fleet combined 11,000 vehicles per year. If you buy used you are getting the shaft every time. f you think you got a good deal on a used car, you are right, cause a good deal is all about perception. But I promise you, you paid too much, and by too much I'm talking at least 2-3 grand. I would also recommend leasing over buying in every situation especially for customers with good-to-great credit history. Mileage penalties are minuscule compared to how badly you can be flipped in a car 2-3 years down the road when you are sick and tired of driving it, which you will be. I'd also recommend dealing only with veteran sales people. Turnover is very high in most dealerships and new salespeople usually don't last very long, a veteran salesperson will be there to help you out down the road if your vehicle has any issues. For example, lets say you have to come in for a repair of some sort, and it's going to take a long time, most dealerships do not provide loaners to service customers. A veteran sales person will convince a manager that you are interested in a new model (letting him know this is a previous customer so on and so forth) and get you in a vehicle so you don't have to sit all day at the shop. We provide a service to our customers, that's what you pay us for. People who aren't in the car business just don't understand that we aren't the bad guy. The desk manager whose penciling the deal is the bad guy.

What I have done to get the best price is to do what's called 'The FAX attack'. After I have figured out what car I want, I find out the FAX numbers to all of the dealerships that carry that car. I then FAX a request for the car with whatever accessories that I want. I ask for the drive away price. After getting the replies, I get back to the higher bids and thank them for their bid, but tell them that they lost and I tell them the amount of the best bid. In some (not all) cases I will get an even lower bid. The high and low bids have been in excess of over $1,000 difference, this on cars that were less than $20,000. After I got done with the second round, I call the AAA buying service. The last time I did this, the guy quoted about $500 over my best bid and after I told him my best price, he called me back with a slightly better bid. One of the nice things about AAA is that you can pick the car up at the AAA office rather than the dealership. That way you can avoid all of the add-on products that they want to sell you. The one thing I have not figured out is that in the last two cars I purchased (at two different dealerships) they would offer me an add-on for say $500 and when I decline they then ask if I would like to purchase it for their cost of say $350. Not sure why they would sell it at cost, unless they own the company doing the undercoating (or other add-on work).

Most new car dealers want their sales people to share as much information with the guest as they possibly can. We want informed customers to make informed decisions. If necessary, that includes our hard cost. The consumer has no idea of the real cost of maintaining an inventory and the overhead of a dealership, staffing with trained personnel and providing a comfortable environment for our guests. A car dealer is in business just like many other Americans that keep the wheels of our free enterprise system turning. Profit is not a four letter word and the car dealer must make a little. Compared to most other businesses, today's car dealer has a very thin profit margin. We must make an average of 4-5% gross profit on a vehicle sale to stay in business. That is the reality of this market and is a win-win proposition. Anything less is not healthy. If you really want the best experience in a new car dealership ask to meet a manager when you walk through the door. If you feel good about his attitude and presentation, proceed. If you don't, get out of there. The speed of the ship is the speed of the captain. You can tell so much about a business if you simply take the time to meet the people in charge. Our customers do not like playing games. Do not begin your experience by starting one. Be honest and be real! Ford Dealer SLC, UT

If possible, know what model car you want and what options you want BEFORE you talk to a salesman. That way, you can avoid wasting time talking to the salesman about options you don't really need. Remember one important rule that I have for myself - You can always get the car and/or close the deal the next day. This will give you time to go home and think about anything that might be in the back of your mind. When I went looking for my new car, I wrote down all the options I wanted on a piece of paper, and I made notes of the ones I was willing to live without. I made copies of it, and with every dealer I went to, I gave the salesman the list and told him, "If you do not have this car with these options, you CAN'T help me." It saves a lot of time. And, fight the finance guy!

I completely disagree with eHow's method on buying a new car. In my experience, it is always better to show as much interest as possible in the vehicle, so that the salesperson will take you seriously.

Research first. Know the exact car you want and its exact value. Be confident when talking with dealers. Best tip: DON'T answer the first question, How much do you want to spend? or What monthly pymt do you want? Make 'em give YOU the exact selling price!

Decide what you want before going to the dealer, then submit your offer online using sites like AutobyTel. With luck, you will be able to get the car for about $500 over dealer cost and you'll never have to set foot on the lot -except to pick up the car!

As a car salesman for a Big 3 dealer, the sales consultant judges the consumer in the same way the consumer judges the sales consultant. If you walk in, as a consumer, and start barking orders about the vehicle you want and how much you are going to pay for that vehicle, the sales consultant is just going to brush you off - none of us need the headache! We don't need your business now, and our service department doesn't need your business later. But, if you walk in, test drive the car, then discuss what possible options you may want and then get in to price negotiations in a civil manner, everyone is going to be happy -trust is formed. I have no problem handing an invoice over to a consumer to show them exactly what they're paying, that is, if I like them and they've treated me well. Another point that is quite annoying, would be people who shop all around. I don't mean one or two other dealers, I mean people who travel well out of their way to get prices. For the most part, those who come back to me and say, "XYZ Dealer is going to sell it for this and give me this for my trade," I usually tell them to go deal there. If you don't trust me, or this dealership, - we don't need your business. And folks, when you say "Give me your best price," when we give you that price don't try to chisel us down even more - It's our best price! Don't just look at black and white, look at the gray area, too. Most people think if they can crack a deal with the Dealer Principal or a Sales Manager, they're bound to strike a better deal than they would with a Sales Consultant. If you think about it, that Dealer Principal or Manager has a more vested interest in the success of the dealership. The person in management likes to see the big gross, whereas the sales person just likes to get the vehicles out the door and get his commission (whether that commission be big or small). And last, but by no means least, don't be a fibber! Don't come in telling us that "XYZ Dealer" is giving you $19,000 for your trade, when in all honesty, it is only worth $10,000 wholesale. All dealers know what the vehicle is worth, the amount of money they plan to book in the trade will be within $500 of each other. Remember, treat others how you would like to be treated! Happy shopping.

Research first. Know the exact car you want and its exact value. Be confident when talking with dealers. Best tip: DON'T answer the first question, How much do you want to spend? or What monthly pymt do you want? Make 'em give YOU the exact selling price!

If possible, know what model car you want and what options you want BEFORE you talk to a salesman. That way, you can avoid wasting time talking to the salesman about options you don't really need. Remember one important rule that I have for myself - You can always get the car and/or close the deal the next day. This will give you time to go home and think about anything that might be in the back of your mind. When I went looking for my new car, I wrote down all the options I wanted on a piece of paper, and I made notes of the ones I was willing to live without. I made copies of it, and with every dealer I went to, I gave the salesman the list and told him, "If you do not have this car with these options, you CAN'T help me." It saves a lot of time. And, fight the finance guy!

When two or more dealers are involved, you can bet you'll be the loser. Insist on one who can close the deal, not someone who's running back and forth while leaving you sitting. If this does happen, walk out.

I would definitely recommend doing your homework on-line prior to buying a car. You can get the dealer invoice so you know what the dealer paid for the car. Most dealers will sell a car for about 500-700 over their invoice if they do a lot of business. Take a calculator with you. Finance guys will try to slip extra charges past you.

I completely disagree with eHow's method on buying a new car. In my experience, it is always better to show as much interest as possible in the vehicle, so that the salesperson will take you seriously.

Be very careful when trading in your car for a new one when you still owe a balance. You could end up paying way more than you thought thanks to the upside-down trade!

You should be more concerned with your monthly payments if you plan on financing a new car. If you get these amounts right, the price won't be a problem. Dealers will usually help you get monthly payments you can afford.

A good way to evaluate vehicles and avoid a bad experience at a dealership is to rent the potential vehicle(s) of choice. Some products in certain markets are hot, i.e. SF Bay area MBZ, BMW and Porsche. Get to know your Fleet or Internet Sales manager.

Pay no attention to the "Mulroney" (factory sticker) or especially any dealer add-on stickers. Insist on seeing the factory invoice for the car. The dealer cost is even lower than the invoice price because of "holdback." Walk if not absolutely happy.