First Time Purchasing a Car from a Dealer: Tips?

Ltichet18 on 18/04/2020 - 12:57

We've been looking at getting a Subaru Forester 2018+ model for a while now, as it fits our use case. We've been looking at the used market with under 35,000kms. Dealerships seem to be the most competitive, however this is our first time so keen to ask the brainstrust.

Any tips you've found helpful?

My questions so far:
- How much can I negotiate off the price? E.g. one car we're looking at is about $29k, base model Forester, with 18000kms. How much could we reasonably expect to negotiate it off?
- Is this a good time to crack into the used car market? Or is it better to wait?

Thanks in advance.

Automotive

Comments

  • justaperson on 18/04/2020 - 13:33
    +34

    I'm a car dealer (actually mainly dealing with imports). Honestly the others will hate me putting this out there but there's no better time to by used. Dealers are desperate to get rid of used stock since the market is now also flooded with private sellers getting rid of their second cars etc as they're not needed anymore so there's a huge oversupply in the market currently - whether this will last, I'm not sure but at least at the moment you're in a position of advantage as a buyer. Will you be able to get a deal? Yes, somewhere in the realm of 15% to 30% off if the car hasn't been heavily reduced in price already. But don't go in expecting to get a 30k car for 15k or a 10k for 5k etc, because it'll cost them less than that to hold onto the vehicle.

    • tichet18 on 18/04/2020 - 13:56
      +3

      Hey mate I really appreciate the honesty - that really helps me gauge the ball park in where to start with negotiating!

    • chartparker on 18/04/2020 - 14:30
      +45

      "Car dealers hate him! See how he saved $10,000 in an afternoon with one simple trick!"

      • justaperson on 18/04/2020 - 21:21
        +11

        "Car dealers hate him!

        Its funny you say that, I've been called up and abused for 'selling it too cheap' because they're upset I'm selling a car worth $13,000 for $13,000 because they can't flog theirs off at 20k anymore.

      • Fobsessive on 20/04/2020 - 12:27

        Ok boomer

        • [Deactivated] on 20/04/2020 - 15:30

          Soleh

      • Zondor on 20/04/2020 - 15:41
        +13

        Can you please format your paragraphs like a normal person?

        • YellowDieselGolf on 20/04/2020 - 16:35
          +22

          Paragraphs? I thought they were song lyrics.

        • Daabido on 21/04/2020 - 15:52
          +1

          He can't. It's his thing. No one would read it if it was formatted correctly. Here you go;

          YouTube is your Friend, here… There's at least ONE [Former] Dealer giving you a "behind the scenes" look, feel & advice about "dealing with a dealer[ship]". I don't recall title, channel, etc.but it's not hard to find. Free Advice, that can save you lots $$ Good Luck

          PS Would "The Barefoot Investor" (TBI, below) have a section on buying a car? (In general, he - quite rightly - advises AGAINST buying w/ Credit And either he OR the YouTube guy says: If you MUST buy w/Credit, get it Elsewhere, so you can walk-in with the Confidence of an independent person (almost wrote independently wealthy).

          If you're Not in a hurry, I'd read as much as you like of TBI (Your Library will have some to borrow for Free…) You can get its Audible (audio-book) version Free (IF you're a New Audible member - maybe 2 audio books, these days…?)

      • ankor on 20/04/2020 - 20:02
        +6

        Worst haiku ever.

  • Melb69 on 18/04/2020 - 13:58
    +9

    Also do the usual checks. Full stamped service book. If you are really interested I would still get the car mechanically checked by say RACV if that service is still available at this time. Buying from a dealer will also give you 3mths warranty where as a private seller its buyer beware. Also go to a reputable used car dealer. Just also do the usual overall visual inspections of the car. If it doesn't look right ie odd looking panels it may have been in an accident. Have a good long test drive to check alignment and any odd noises. If it doesn't drive well walk away. No matter what the salesmen tells you. ie took a car on the highway and it was making a very strange noise. Don't get sucked in my the one car at the dealer as no double you'll probably find another with just a good a deal. Good luck.

    • Zachary on 21/04/2020 - 08:38
      +1

      Also do the usual checks.

      Here's one I prepared earlier for my own Maybe get a mechanic (or 3rd party agent who may or may not be a mechanic) to go through that list while you're there with him/her, to help verify and confirm or have their you own to go on with that's probably better than mine…

      If it doesn't look right ie odd looking panels it may have been in an accident.

      If it drives alright, who cares if it's been in a prior accident? If you just want a car that can get you from point A to B and don't care about anything else, does that matter at all? Whoever the smash repairer was that did the fix didn't do a very good job to keep it looking original or at least not so obviously out of place from the other bits of the car unless who ever paid the repairer to work on didn't care how it looked at the time as long as it was fixed, in which case that would be on the previous owner…

      Unless you care about looks….in which case fair enough…

      • PinchFist on 22/04/2020 - 15:50

        Thanks for sharing the checklist

  • sane on 18/04/2020 - 14:22
    +2

    Look online, the prices there are usually cheaper on the forecourt for the same vehicle. Then you go armed with what they have already cut off the price and can go lower still.

  • koplik8 on 18/04/2020 - 14:38
    -5

    I bought a second hand Holden from a dealership. They wouldn’t discount it any further so I asked them for a $500 fuel voucher. It’s worth asking. They said no. I knew they were giving them away with their new Holdens at the time. In the end they took a further $500 off the price cause I would give in. Well I said to them that the fuel voucher is a tax ride off for them anyway lol

    • 2ForTheMoney on 20/04/2020 - 11:40
      +4

      And then what did they say…

      • Logical on 20/04/2020 - 13:07
        +2

        They 'rode off' perhaps

  • Tee Rex Arms on 18/04/2020 - 14:39
    +5

    Make sure you’ve got a guaranteed job for the next 18 months

  • nswnotill on 18/04/2020 - 14:50
    +2

    Check out the values on Redbook. It gives a starting point for a fair idea of values

  • Hithere on 18/04/2020 - 15:03
    +9

    There's a huge thread on Whirlpool that's been going for 6 years that will answer all your current questions and questions that you haven't even thought of asking.

    It's posted on the Automotive board and called 'Car salesman fielding questions'.

    Make sure you have plenty of spare time before you start reading as there's a lot of great tips there.

    • tichet18 on 18/04/2020 - 15:10
      +2

      Good tip off! I'll have a gander.

    • funnysht on 20/04/2020 - 16:58

      We dont talk about that forum here, sir.

  • AustriaBargain on 18/04/2020 - 15:55
    +4

    Be prepared to deal with someone whose entire life relies on being a slick salesman every day of the year.

  • Donaldhump on 18/04/2020 - 16:41
    +5

    Be firm, walk away if you don’t like the deal, car sales people will say that’s the best they can offer you, then will crap themselves when you leave and go make a magical phone call to the boss

    • Melb69 on 18/04/2020 - 17:00
      +1

      Had 1 salesmen say the price was the cheapest I was going to get anywhere. Lucky at the time I had already gone to another dealer who was closer and really helpful. Told the salesmen to give me his phone (landline). So I could call up a dealer and see if that is true. The other dealer gave me a cheaper price. Best moment ever. Was happy to go back to the other dealer. Did help that they were competing dealerships.

    • abb on 20/04/2020 - 11:51
      +2

      go make a magical phone call to the boss

      This is (usually, if not always) a lie. If they try to pull this shit, ask to talk directly to the person with authority to make the sale and stop wasting your time with a useless intermediary (be slightly more diplomatic, perhaps).

      • Donaldhump on 20/04/2020 - 12:45
        +1

        i walked away 3 times, on the 4th go accepted my trade in value, went from 2k to 4k. they are bullshit artists at their best

  • netjock on 18/04/2020 - 16:43
    +2

    Be prepared to walk away.

    Don't say stuff that you will regret like "I won't be coming back" (in case it is the best deal you can get and have to come running back and eat your words).

    Say something polite but adds some tension "I am not in a hurry to buy but will commit if given the right price"

    • gromit on 21/04/2020 - 20:22

      Who cares if you have to eat your words. Do you really care what a salesperson you may never see again for the rest of your life thinks?

      I usually go with, "is this your absolute best price? I will be shopping around and I won't be back if I find cheaper elsewhere"

      • netjock on 22/04/2020 - 10:39

        Who cares if you have to eat your words. Do you really care what a salesperson you may never see again for the rest of your life thinks?

        May? If you are back then they know you have to eat your words.

        It is for your own pride. You might be one of those people but it doesn't hurt your pride to be polite.

        • gromit on 22/04/2020 - 10:46

          what has telling them you won't be coming back got anything to do with being polite, it is being hones. When I tell them that I mean it, If I later had to eat my words it doesn't hurt my pride, why would it? do you have a problem admitting when you are wrong? personally I happily own up to it. Being open and direct is only impolite if you don't actually mean it.

          good example is my current car, I told my local dealer this when I was car hunting, he said he would give me the best price and no worries he would look after me as he deals with a lot of business from my company. Took me all of a couple mins on the phone to some other dealers to get a deal significantly better, I assume the local dealer thought I was bluffing. He lost an easy sale whereas the other dealer gained an easy sale.

          • netjock on 22/04/2020 - 19:04

            @gromit: LoL

            Because someone else lied to you isn't a licence for you to be an (profanity) to everyone else.

            • gromit on 22/04/2020 - 23:31

              @netjock: how is being honest to someone being a (profanity)? to me you are the one doing that by not being honest.

  • iand on 18/04/2020 - 22:26
    +8

    Be prepared to walk away
    Don't take the partner unless thay can keep their mouth shut,we went for a test drive and my wife says in front of the salesman I want this car I really like it it's great. I got a good price but have always felt I could have done better if she'd said nothing

    • ankor on 20/04/2020 - 20:05

      Mine said my vehicle was close to dying when I was attempting a trade in. She cost me a fair bit that day lol

      • BartholemewH on 21/04/2020 - 19:07

        I was looking at a car the other day and the owner said 'I've got another bloke interested'. Their phone dings and their daughter picks it up and says 'the guy guy told us to stick it'……

        I nearly said to her, 'don't ever say like that in front of a potential buyer'. The car was a mock up so I wasn't going to buy it, but they didn't know that.

        • netjock on 22/04/2020 - 19:06

          You get the same from real estate agents

          I just don't react. The look on their face is priceless.

  • leiiv on 19/04/2020 - 12:37

    Is it advisable to get sub $5000 car from a dealer?

    • the Unforgiven on 19/04/2020 - 13:42
      +1

      No
      It would be absolute junk & come with no warranty
      Buy something above 5 grand as it will have some warranty

    • Euphemistic on 19/04/2020 - 20:46

      A $5k car at a dealer won’t have a warranty, which is he only reason you should pay extra over a private sale for a used car. A $5k car at a dealer is likely to have at least $1k profit built into it.

  • hasher22 on 19/04/2020 - 20:24
    +1
    Merged from Negotiating a Price off a Car at a Dealership

    Hey guys,

    I am looking at getting a car at the EOFY sale is good, if not that's ok, still planning to buy one.

    If the dealership advertised, lets say at 50k driveway for a demo, used or floor stock, what is a good haggle price to say off the price? Should I shave off 10%, so I would offer 45k? Or should I say 43k to get the negotiating happening?

    I just don't want to have this long negotiating battle as I don't like pushing really. I just want to know how low they can go. I am keen, willing to spend and not muck about, I don't want no add ons, their insurance etc. I just want to buy, sign and drive away their floor stock. Let's cut to the chase but also have a happy medium between the two parties.

    I know there's lots of variables such as what time of the month to buy, which dealership, which sales rep, wiggle room, new car vs demo vs used etc etc.

    But happy to buy floor stock at the end of the day without those pesky add-ons.

    I just want to know the average % people usually offer from a drive away price. If I offer 43k and he says 45k then most likely I'll take it and get it over and done with. But 10% off a drive away price is pretty good?

    Also is it good to mention other dealerships deals for the same car?
    Example: Dealer A is offering me 46k on model X, what can you do with your same model?

    • brendanm on 19/04/2020 - 20:26
      +5

      Completely dependent on the vehicle. RAV4 hybrid, no way. Some sort of Citroen, probably get 50% off.

      • hasher22 on 19/04/2020 - 20:29

        Ah thank you,

        I see, the car I am looking at is Merc A250. Which on car sales, drive away price from a dealership is roughly from 50k to 55k

        • paraneoplastic on 19/04/2020 - 20:31

          Usually around 10 - 15% on the lower end mercs the AMG models 15 to 25%

          Btw the 2020 A250 is a great car!

          • hasher22 on 19/04/2020 - 20:36

            @paraneoplastic: Thank you. I see. Maybe I should start with 15% and have the dealer battle. lol

            I many months of research on which car to buy, I decided on the A250 :) My heart is set on that model and I originally had a budget of 35k but I bumped up my budget to 45k.

            • dylanando on 19/04/2020 - 20:53
              +1

              @hasher22: There a damn sweet car, recently got myself an A200.
              The inside is futuristic.

              • hasher22 on 19/04/2020 - 21:16

                @dylanando: The selling point was the interior for me with the new 2019+ models. I am a tech guy and the cockpit just beats the competition. Also the fuel consumption and power isn't too bad either with the A250.

            • dcep on 19/04/2020 - 20:53
              +3

              @hasher22: why not a used A45 AMG for 30k ?

              save that 15k for repairs

              • hasher22 on 19/04/2020 - 21:18

                @dcep: Thanks for the model suggestion :)

                The 2019+ models interior is the selling point for me. I did look at those models but I heart not really set on those.

                • dylanando on 20/04/2020 - 13:36

                  @hasher22: Yeah. The new interior sold me, I’m a sucker for tech and leds lol

          • Jamesrulez1 on 20/04/2020 - 16:18

            @paraneoplastic: Which amg models are we talking 25% off?

            I'm in the market for a new a45 or a35 however budget is flexible (can go up to c43) and really just wanting to gt a good discount on a retail price.

            Would you recommend starting with 30% off as a starting offer and then meeting in the middle with the dealer?

    • SnoozeAndLose on 19/04/2020 - 20:34
      +2

      I just don't want to have this long negotiating battle as I don't like pushing really. I just want to know how low they can go. I am keen, willing to spend and not muck about, I don't want no add ons, their insurance etc. I just want to buy, sign and drive away their floor stock. Let's cut to the chase but also have a happy medium between the two parties.

      There is no common ground for buy and seller, dealer always want to sell the highest possible price and buyer want to pay the lowest possible price. Sometime need long time to negotiate or even you need to go away and get call back.

      Also there is no specific hard % to start with, just let them know how much you can afford and both parties work toward the middle agree by both.

      If you are time poor and don't want to push then ready to pay higher price.

      • hasher22 on 19/04/2020 - 20:39

        Thank you,

        Yes I understand.

        I am not time poor really, maybe just timing? I will shop around 20th of the month and I will leave my number with them if they change their mind or price of the car. Since they may need my sale to meet their KPIs at the end of the month.

        • SnoozeAndLose on 19/04/2020 - 20:41

          Go from the dealer much further away to the closest one so you will get better negotiation closer to home.

          You also can test what is the bare minimum you have to pay.

          • hasher22 on 19/04/2020 - 21:15

            @SnoozeAndLose: yes! I had this tactic in my notes as well! lol. Always good to shop around, my friend and I already planned which dealerships to go to first. lol

    • randomusername2017 on 19/04/2020 - 20:44

      I just don't want to have this long negotiating battle as I don't like pushing really.

      Just pay ticketed price then…

    • garetz on 19/04/2020 - 20:49
      -3

      The best way to haggle, is ask for their best price, if you arent happy with what they say then walk away. Haggling is a waste of time.

      • SnoozeAndLose on 19/04/2020 - 20:51
        +2

        So be prepared to walk away from every dealer?
        who will happy with the dealer's best price? Negotiation is the core process.

        • garetz on 19/04/2020 - 20:55
          +2

          This way you get every dealers price, some are more desperate for a sale than others, you can use this information as a basis for haggling, its time consuming, but this way you get the absolutely best price.

          If you show them you are willing to walk away, sometimes they come back at you and undercut themselves, its an effective way by not negotiating.

          Then you can go to the lowest offer and try to negotiate an even better deal.

          • SnoozeAndLose on 19/04/2020 - 21:01
            +2

            @garetz: I would haggle a bit to get lower the price,it can reduce the number of dealer you have to go. Just asking and walk away wouldn't go anywhere and show that you are not that interested.

      • spackbace on 19/04/2020 - 20:55
        +7

        😂😂 Oh please, whenever we get asked our "best price" we never divulge it (and really, best price for us is RRP).

        Love reading this advice, it gets you absolutely nowhere.

        • garetz on 19/04/2020 - 20:56
          +3

          then good luck getting the sale, i would never deal with a dealer like that. Its obviously a waste of time to.

          • spackbace on 19/04/2020 - 21:00
            -3

            @garetz: You just said you'd walk out anyway rather than learn to negotiate (which isn't difficult), so what have I lost? Nothing.

            Oh noes, I lost the ability to make minimum commission off you, whatever will I do?!

            • garetz on 19/04/2020 - 21:00
              +4

              @spackbace: Maybe get a new job.

                • garetz on 19/04/2020 - 21:05
                  +4

                  @spackbace: Good for you, that just means you werent prepared to give the best deal, so you dont get my business. Simple as that.

                  For some reason dealers think they have the power in this situation, but the buyer has all the power, alot of buyers dont realise that.

                  • spackbace on 19/04/2020 - 21:07
                    -4

                    @garetz: No, you don't have the power. You won't be happy till there's $50 profit in my car, or you go buy someone's old stocker instead.

                    The car we missed out on making $50 profit from you, someone else just bought for $1,000 profit, and were much happier in the process.

                    So no, we didn't lose out with a customer like you.

                    • garetz on 19/04/2020 - 21:10

                      @spackbace: Lets be real here, the markups i am talking about isnt a difference between $50 and $1000.

                      If thats your markup i dont know how you are still in business.

                      The buyers job is to get the best price, the sellers job, ie you is to rip off people as much as they can.
                      Basically negotiating the way you say puts the buyer in a position of weakness. They will not get the best possible deal, that means you will make more profit. If you get fools like that, kudos to you.

                      • spackbace on 19/04/2020 - 21:15
                        +3

                        @garetz: How would you even know cost price vs what you're buying a car for? Do you think we're making $5,000 profit off a Corolla? 😂

                        Asking "best price" is weak, plain and simple. Try bartering like that in somewhere like Bali and see how you go. Put an offer in, if it can be done then it'll be accepted. If it can't, then it will be countered. Simple enough?

                        Basic business practices to go "would you take X" "no but I'll do Y".

                        There's a reason why your method involves going to multiple dealers, all of which have the exact same cost price for a car… Because "best price" wasn't really their best price, hence you're setting yourself up to fail.

        • SnoozeAndLose on 19/04/2020 - 21:01
          +1

          Space back can I ask how your car dealership doing in this weather?

          • spackbace on 19/04/2020 - 21:04

            @SnoozeAndLose: Quiet…

            Though the last few days have seen an increase in traffic, so maybe people are just sick of hiding away now? I dunno

        • hasher22 on 19/04/2020 - 21:11
          +4

          Hello Spackbace,

          I believe negotiating with a salesman is part of the average folk process and it is the norm, like someone going into JB HI FI and just passively asking for a discount and I had sales rep just offering me free warranty and a lower discount to my surprise.

          I know on your end, I can empathise with you as I was a sales rep in retail, and I know how entitled customers can be, but there are good customers out there.

          Each salesrep is different, and with your mindset, selling all your cars as the advertised price is fine and that's how you work and I am not contesting that at all. Good for you for holding your RRP ground, but there will be customers like myself who is not an entitled brat nor doesn't want to pay RRP cause I know I can get it cheaper.

          You may say 50k drive away while another dealer may say 45k drive away for the same model. That just means I am not your customer.

          Thank you.

          • spackbace on 19/04/2020 - 21:19
            +10

            @hasher22: That's not what I was referencing. I'm saying "what's your best price" won't get you anywhere, whereas "would you take X?" will.

            Shitty advice on the internet leaves people pissed off at the whole experience.

            Put an offer in at where you wanna be (as I suggested further down), but don't just sit down to negotiate and go "ok so I'm ready to buy, what's your best price?" The salesperson will be surprised and might even laugh a bit.

            It's lazy, non-committal, and a shit way to buy anything.

        • bobbified on 19/04/2020 - 22:53
          +4

          I'm surprised there are people who believe they've been given the actual best price just because they've asked for the "best price"! 😂

        • p1 ama on 20/04/2020 - 04:55
          +21

          I think you're a good guy, but your vested interest in car sales often blinds you to genuine criticism of the industry and the way it works. Obviously not every car salesman is dodgy, but there's a reason why the reputation persists. It's because there are few negotiation processes where the imbalance of power is as much as when buying a car.

          Just think about it. As a dealership, you know exactly how much every past sale has gone for. You know exactly the markup, the margins. The buyer knows nothing. There is literally no other transaction where the difference in information is so stark. This is why I (and many other people) despise buying cars.

          Negotiating is an important skill, I agree, but only when it is a fair negotiation. If I buy a house, I can look up every past sale in that suburb. I can come in with an informed valuation of how much that property is worth. The information is there and publicly available. I've managed a small business before and have had to negotiate purchase and supply contracts. Again, the numbers are transparent, it's easy to get a quote and I've never felt that the other party is out to screw me over.

          Walking into a car dealership though is a completely different experience. It's no secret that car dealerships are the mother of all dodgy and dirty tactics.

          I'm not criticising you as a person. It's your job to sell me a car for as much as possible. I get that. However, you're being dense if you can't see the problems with your own industry and why people hate the process of buying a car.

      • hasher22 on 19/04/2020 - 21:14
        +1

        I guess I wouldn't say what is the best price, because I know most sales rep would say…. "well, the 'best' price is the price advertised". I would word it in a way, maybe like: "what is the price you're willing to go down to if I sign today and put the deposit?"

        • spackbace on 19/04/2020 - 21:21
          +1

          "What can you do for me?"

          But honestly, that's a weak hand. We just need to show some discount, with a reasoning behind it, to maximise profits.

          You'll need to go through written offers to get where you wanna be. And if the manager comes in, counters but then let's you leave at your offer, then you were too far away.

          It all depends on what they counter with, and how far away it is from your figure and the advertised price.

      • nomoneynoproblems on 19/04/2020 - 22:51
        +1
        • btw this doesn't work
    • spackbace on 19/04/2020 - 20:59
      +13
      • If they don't counter-offer, you were too low.
      • if they don't present the offer in written form, you were too low
      • if they laugh, you were too low
      • if they let you leave in this current retail climate, you were too low.
      • Make it known you want the one in stock
      • Make it known you can have it by the end of the month
      • Make it known if the deal is right, you'll buy it right there and then

      Be friendly but firm. Don't need to be an ass, you can still be professional.

      • hasher22 on 19/04/2020 - 21:19

        Thank you,

        Yes I had a feeling that if they don't respond in-person with a counter offer, I would have gone too low. But I would assume they would counter offer me? If they say, "nah too low", then maybe I should give my budget price and leave my number.

        • spackbace on 19/04/2020 - 21:22

          If a salesman won't present it to his boss, then yeah you were stupidly low. Doesn't happen often, but it does happen.

          Set yourself a budget and try, there's no harm in trying

          • pegaxs on 19/04/2020 - 22:20
            +8

            @spackbace: Also;

            • Do research before you go to a dealer. Work out a reasonable price to pay. 50% off is unrealistic, but between 10~20% is more achievable.
            • Don’t take too much notice of what other people “say” they pay, as people are prone to bullshit (ie: $35k new RAV4 Hybrid guy, who conveniently couldn’t find the sales contract…)
            • Have a lower figure you “want” and an upper limit where you’re still happy, then stick to it!
            • Put your money where your mouth is. Don’t mess about, tell them up front, “just looking and comparing today” or “I’m here to buy today if the price is right.”
            • Be prepared to say “thanks for your time” and “you have my number if anything changes” and walk out.
            • During the negotiation, the less said, the better. Take in the information, give out nothing. He who talks first, loses.
            • Always work down in price, not up. Listen for things like, “well, can you come up half way?” This moves the floor price up. Always ask, “no, but can you come down half way.” This way the ceiling price is reduced. It’s still the same price on offer, but comes out of their end, not yours.
            • Emerald Owl on 19/04/2020 - 23:54

              @pegaxs: Could you please explain the half way up/down thing more? That’s the same thing but different language right?

              • spackbace on 20/04/2020 - 00:35
                +3

                @Emerald Owl: Yeah, first time I've heard of that tbh. So if you go up on your offer to halfway, then it leaves you further room to move. If the dealer comes down, then that's it they're down.

                Kinda feel like you'd only get that level of commitment from a Manager, as they're the ones who have final say in the price

              • pegaxs on 20/04/2020 - 09:19
                +14

                @Emerald Owl: Come on, Spack, this is car sales 101. This is one of the first tricks you learn. I never fail to get asked this when I buy cars…

                The sales person will always be trying to work you up in price, you should always be trying to work down in price.

                This technique was one of the first basics I was taught when I did sales. Always ask, never give. It works basically like this;

                You want the car at $30,000, But the sales guy says cant budge from $35,000. They will then say something like, "Well, we are not far off, Maybe if you could come up half way, I can take that to my manager…" At this point, you have just moved up $2,500, and they have moved down $0. Your new base price is $32,500 and the dealer hasn't moved any. And trust me, the manager wont say yes to that deal anyway. (if they even talk to the manager about it. They may just talk last nights football scores.)

                Salesman will come back to you and say something like, "the boss cant do the deal at that price, be he is close. Do you think you could come up some more?" And the price floor is creeping up and up each time as this cycle repeats. Take note that the salesman will usually never mention their end of the price or give much.

                What you do when they ask to meet half way is to ask them to meet half way. Work the discount off their side of the deal, not yours. When they ask, "can you meet/come up half way?" ask them the same thing. "Sure, If you can come DOWN to half way, I am more interested." Push the movement of prices onto them, then wait for the "oh but my kids cant eat, my wife will leave me" bullshit to start…

                Don't give an inch to a salesman unless you get an inch. If they want you to move up in your offer, tell them you want them to move down.

                I hate buying cars now because I know of the bullshit that goes on. I get tired and impatient and hate haggling and doing the price dance. I just do my homework now, come up with a fair price, keep and eye on a car and go in and say "That's the car I want, this is the price I will pay. I will buy today if you can do that price, outside that, I will leave my details and you can call me if things change." Has worked 100% of the time so far, but never at the dealership, always a week or 2 later after a phone call… The trick is to know your product, pick something they have in stock, do the price homework before you step in the door.

      • This Guy on 20/04/2020 - 14:06
        +2

        If they don't counter-offer, you were too low.

        Salesperson 101

        "Wow, that sounds great. I would buy it at that price. But could you give me a realistic number I can go to my boss with?"

        if they don't present the offer in written form, you were too low

        Salesperson 102

        Never provide a written quote unless you want a customer to buy it from the next dealership for $500 less.

        if they laugh, you were too low

        Salesperson 103

        You are your client's best friend and representative at the dealership. You need to make them feel like you are going in to bat for them against your boss. If you can't sell a car to them, you at least want them to refer you to all their friends and family as 'that nice guy who risked their job for me'. Openly humiliating a client for your personal enjoyment is a great way to ruin a site's reputation. And it is silly, because most of the Road to a Sales is designed to humiliate and dehumanise your client's anyway.

        if they let you leave in this current retail climate, you were too low.

        This is true, but if you can't get them to sit at your dealership for hours on end while you wear them down for finance and the ming mole are you really doing the job you are paid for?

        Don't get me wrong, some 'salespeople' will respond those ways, but they will either spend their day calling every walk in a Casper or disappear for half the day. Price is usually the easiest objection to overcome as it usually means they want your car.

        • spackbace on 20/04/2020 - 14:10
          +1

          Shrugs

          Anyone can nit-pick a basic list, just don't try to summarise a multiple-hour event based on my bullet points.

          Just trying to help the OP, no need to attack me over it.

          • This Guy on 20/04/2020 - 14:28
            +1

            @spackbace: Come on man, I know you are good. I was ripping on those rubbish sales people you were describing.

            Better advice would have been "if a salesperson humiliates you in one of these ways, message me (Spackbace) the car salesperson. If I can't help you, I will try to find someone at one of my old dealerships who will pay me $100 (or what ever your personal referral fee is) if they can work something out with you."

            I am sure you know how to close a sale from there.

            Note: Please PM Spackbace, not me. I am not attached to a dealership and have no interest in wheeling and dealing.

    • Nalar on 19/04/2020 - 21:40

      Or go to autoexpert.com.au and see what they can do?

      • spackbace on 19/04/2020 - 21:50
        +2

        If you pay for a broker, you're eating into any discount you could hope to achieve yourself. The amount they charge you, and the amount they charge the dealer, could all be in your own pocket

      • pegaxs on 19/04/2020 - 21:51
        +3

        Nothing. Absolutely nothing. What they are is a service to find a service that looks for a car for you. So, Codogan wants his cut, the broker wants their cut and the dealer wants to claw back their finders fee…

        I have tried to use his buying service on two seperate occasions over the last few years, and both times I have been palmed off onto different car broker services.

        Both times I had to keep chasing and chasing the broker for a price and when they did get back to me, albeit usually a month or 6 weeks later, it was basically RRP with delivery to my door added as a bonus. A single buyer could walk into a dealer and get a much better deal than what was on offer at any of these brokers.

        Another thing to consider is that your car could be coming from anywhere and there is a possibility that you don’t even get to view it before it arrives on the back of a truck. You could be getting an old stock vehicle, or a 20MY, 19 built vehicle.

        Autoexpert isn’t the broker, it’s a broker broker. And every finger you add into the pie is one more piece of your discount you have to give away…

    • adgnetworks on 20/04/2020 - 02:01
      1. Do a lot of research on the car youre after.
      2. Put a notification on Carsales for ex-demo/new of the car they have on the lot.
      3. Wait for price youre comfortable with.
      4. Visit some dealers, call some and see how they react to the price you can get the vehicle for.
      5. Usually they say "thats a really good price, you should buy it from them"
      6. Visit cheap dealer and see how much free extras they can throw in.
      7. Deposit.

      If you try it on a popular car then you cant really get much of a discount but its better to negotiate with a car they already have sitting in the yard.

    • thatonethere on 20/04/2020 - 07:24
      -1

      One thing which can work is to add the dealer provided packages- eg tinting, magic coatings for interior and exterior. These are massive profit items for dealers compared to selling the car. If you can get those packages added and get them to reduce the price of the car component- then at the last minute drop the dealer packages.

    • tims on 20/04/2020 - 07:46

      Great tactical info (in this thread) on buying from a dealership. Thanks to all contributors!

    • Duckie2hh on 20/04/2020 - 08:19

      The last time I bought a new car, I used this method.

      Call the dealers (start from the furthest/smallest ones). Say that you are willing to buy the car over the phone and pay a deposit now. Know the model that you want with all the details and extras and offer a single price. If they can't meet it, say thanks and call the next dealer.

      It worked out for me and I would do it again for the next purchase. Bought a brand new Mazda 3 SP 25Gt when it first came out with all the bells and whistles for 15% of RPP.

      • SnoozeAndLose on 20/04/2020 - 08:37
        -3

        What is RPP stand for?

        • Duckie2hh on 20/04/2020 - 12:39

          Recommended retail price.

    • popsiee on 20/04/2020 - 08:24

      All depends on the starting price in relation to market price . Sometimes deals are so hot that whether you are the first or last in the door if stock remains it flies out the door . A product like this there is o gab for negotiation .
      I can imagine someone negotiating for a bait car that is nonexistent lol .

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