How to haggle with a car salesman (or woman).

[David See]

Hi all,

Well, after weeks and weeks of looking, almost settling for the colour I didn't really want (black) purely because the car was at a local dealer, I think I have found our car in Sydney.

Actually, I have found two in Sydney and another locally in Gosford. I saw one of the Sydney ones today and it was exactly what I wanted. The Gosford one was due for inspection this afternoon, but it didn't get back to the yard after the Boss had it for the day in time for me to see it before closing, so I am inpecting it tomorrow.

Now, the Sydney dealer knew I had others to look at and they wanted to entice me there and then to sign up without having to see the other two. I had leverage. Nice. But I declined. My head told me to.

I thought I would be mad not to inspect the Gosford one, seeing as all services are going to have to be carried out at the selling dealer to honour the warranty. But still, they wanted me to sign, eventually dropping the price by $2k.

Off I drove, heart telling me I wanted the car I just saw, but my head telling me "don't rush". I know it is not wise to sign anything quickly.

So I am seeing the Gosford one tomorrow. But once I do, I am going to have to then make a decision on which one is best for me. Well, I don't HAVE to do anything, but I want and NEED to make a decision soon. ANd it has taken me ages to find THE car.....

So could someone please tell me what to do in this case once I have inspected the local vehicle - how to get the best deal? I guess it depends on what the local car is like, but my hunch is the two vehicles are going to be pretty close.

I know there are tricks to all this.....and I am sure some of you seasoned car buyers out there can help...

(No disrespect to all you valued salesmen). :

[rodderz]

Having a mate as a salesman , I would recommend just being friendly and down to earth about it all. By all means try to get the best price and haggle down from the rrp, but dont take them for an idiot. If they see you are fair but want a car, they'll come to the party with a better deal

[hy_boi]

to true...best way to do it is make an offer for about 8% off the rrp, otherwise if you just ask them or best you might get 1, 2g off...

[Peuty]

Exactly what Rodderz said, don't treat the salesperson like an idiot.

One of my favourite things to do to persistent customers was keep adding to the price until they got the point that I wasn't telling porkies when I said it was as low as I could go.

Me- Mate $20 000 is a low as I can go..

Them - Nah you can do better

Me - Ok what about $21 000?

And so on.

[David See]

I have always been curious as to how much profit they have to make.

For example, if I DON'T trade in a car and they give me their best CASH PRICE on the new vehicle, why do they have to go back to the original sticker price on the new vehicle once a trade is introduced?

I mean, even their BEST CASH PRICE on the new vehicle would have some profit, would it not, otherwise they wouldn't do the deal in the first place. Then if they get a trade-in, they are going to re-sell that at a profit, one would think.

SO why, oh why, do they go back to the sticker price once a trade is introduced into the deal? I mean, they will then end up maing a profit on TWO cars then, will they not, or am I missing something vital?

FOr example:

Them: DO you have a trade in?

Me: No

Them: Ok, we can do a good deal for cash with no trade.

.....we get to the cash price, then:

Me: Ok, now what about if I trade in my car?

Them: Well, that is different...we will have to go back to the original proce on the new car.

What gives?????

[sgt_doofey]

Don't be afraid to walk out.
When we bought the Peugeot, the sales man tried to get another $250 from us. We said we'd walk if they didn't let it go. They asked, "Are you prepared to walk out for $250?" We replied with, "Are you prepared to lose a sale for $250?"
They dropped the extra amount.

[David See]

They tried every trick in the book to get me to sign there and then...you know..."what would it take to make you sign for the car NOW?" and "we don't want you to look at the other car, what will it take to stop you?"

I should have offered some ridiculous amount, but I needed to see the other car before I commited as it is local....

I am sure I will end up in Sydney again to haggle, unless the local car is even better than theirs.

The only thing the sydney car has against it is that I will have to get it serviced in Sydney to honour the warranty.

[irlewy86]

Originally Posted by Peuty

Exactly what Rodderz said, don't treat the salesperson like an idiot.

One of my favourite things to do to persistent customers was keep adding to the price until they got the point that I wasn't telling porkies when I said it was as low as I could go.

Me- Mate $20 000 is a low as I can go..

Them - Nah you can do better

Me - Ok what about $21 000?

And so on.

So what about $20,000 and you throw in the metallic paint for free?
Is there another car on the yard you could do a better deal on?
Is there any after sales support I could get for cheap, servicing etc?

[GTWHOA]

Just take your time mate. There's no harm in not buying something. I'd suggest to look at lots of cars and talk to a few different salespersons. And just get the feel for it yourself.

And remember they continue to make profit a long time after they sell that car with servicing and repairs.

[David See]

Originally Posted by BFwagon

Just take your time mate. There's no harm in not buying something. I'd suggest to look at lots of cars and talk to a few different salespersons. And just get the feel for it yourself.

And remember they continue to make profit a long time after they sell that car with servicing and repairs.

Understand what you're saying, but we have done our homework, taken our time and now found the right car...THREE of them, in fact IN ONE DAY, after not being able to find any of them for months.

It's a great feeling when you find the right car...now all I have to do is get it as cheap as possible.

...mind you, I think the sticker price is already ok, because they are great cars and I have found exactly what I want.

ANything under and below that is a bonus!

[troppo]

Originally Posted by David See

The only thing the sydney car has against it is that I will have to get it serviced in Sydney to honour the warranty.

Not true. You can get it serviced at any recognised service centre, doesn't even have to be a Ford dealer. I only take mine to Ford for warranty work (which has only been once with the bonnet release cable on the last car), and get it serviced at Ultra Tune.

[Smoke Pursuit]

Sticker price usually has 3 - 4 kay loaded minimum, that covers any gap on trade in etc...

I assume from your posts the car is second hand... First thing id do would be look at redbook (yes i know people think its crap) and see where the actual car sits, if the price is closer to private sale then you are probarly just about there.

The longer you string them out, the better the price will be, so you have done the right thing not signing up! If they ring you back don't sound overly keen, play the game.

[Smoke Pursuit]

Originally Posted by troppo

Not true. You can get it serviced at any recognised service centre, doesn't even have to be a Ford dealer. I only take mine to Ford for warranty work (which has only been once with the bonnet release cable on the last car), and get it serviced at Ultra Tune.

Not true, the vehicles second hand and will probarly have some Factory warranty left. Most dealers also add extended warranty for 3 - 4 years providing you have the vehicle serviced at their dealership, therefore to keep the extended warranty you need to pay them to service it, its a catch 22 but providing the extended aftermarket warranty doesn't have any stupid clauses or exclusionsit can be a worthwhile exercise, afterall you still have to get the car serviced neways.

[Peuty]

Originally Posted by irlewy86

So what about $20,000 and you throw in the metallic paint for free?
Is there another car on the yard you could do a better deal on?
Is there any after sales support I could get for cheap, servicing etc?

Now that is something that I wouldn't have a problem with. Haggling with price isn't always the best way to get the best deal.

(Bear in mind I wasn't in the car industry, or even in the industry at all now)

[David See]

This car isn't a Ford at all. it is a S/H Toyota at a Mazda dealership...

There is no original warranty left.

This dealer (as a lot do now) offer warranty to 175,000km (this car has 88,000km on it, a 2004 model) but to get that warranty, you have to have the car serviced every 6 months at that dealership, which is a pain because I live in Gosford and the dealer is in Sydney.

Additionally, the warranty only covers $1000 on any one repair. I fthe motor blows, we have to pay everything above $1000 to repair it.

Sounds shonky to me, but most dealers are doing it now.

[troppo]

Originally Posted by LSTerritoryGhia

Not true, the vehicles second hand and will probarly have some Factory warranty left. Most dealers also add extended warranty for 3 - 4 years providing you have the vehicle serviced at their dealership, therefore to keep the extended warranty you need to pay them to service it, its a catch 22 but providing the extended aftermarket warranty doesn't have any stupid clauses or exclusionsit can be a worthwhile exercise, afterall you still have to get the car serviced neways.

Difference of opinion, then. I don't consider dealer's extended warranty to be in the same class as factory warranty, so to me they are different things.

[GTP370]

Stand your ground and be prepared to walk away - simple.

[DBourne]

i guess as long as you speak to them nicely (as you would like to be treated) and stay level headed, you'll come out fine

[gngtho]

look mate the first thing to do is go in and start looking under the car pop the bonnet check for gasket leaks and so on.

Make it look like you realy know what you are doing around cars.

Second when the dealer comes to you you be friendly, then you ask pollitely how much the car owes them, meaning how much did they spend on it to get it to make it right.

If the dealer starts being rude to you thats when you know there is something wrong with the car and hell try to bull his way into selling it to you.

Or he/she will give you a dollar amount tht they have spent on it, if your buying a eg:an average ED GLI and he sais over $1500 you know its bull because no car yard will spend over one quarter over the value of the car to sell it for $4000.

But if they say eg: 500 you then ask what was wrong with it?

Again if there rude walk away and look at other cars this will make them chase you.

If there nice and honest they will tell you, thats when you make an offer exluding at least half of what they said the car owed them, knowing that all car yards have mates at repair shops mech and paint which give them lets say a very good deal as the car yard dealers always give the repairer plenty of work.

If they yard dealer sais ill speak to the boss again you know its bull as the talking down price has already been set by the boss and there is no chance anyone would go lower because alot of buyers are to scared to bargain.

when they come out and say we can only sell it for 100 more than your offer you say ive only got that much cash write now.

If they decline you bring up the age if its older than ten years old.
if they percist walk away.
if not you have won.

[gngtho]

i have bought about 16 second hand cars in 4 years and have made a proffit of some sort.

also have made some awsome dealer mates which let me in on secrets and other car yard secrets, also have found buyers for one dealer and in turn he sells me good cars cheap and gives me a finders fee, for every person i bring in.

i have also sold my cars through him and i in turn give him some cash from the sale or a bottle of jonny.

[David See]

Well, we're talking about a $35k car.

When I asked them what was their best price, the salesman walked away and (supposedly) saw the boss and came back with two earlier MTA window notices pulled from behind the current one, showing me that they had already discounted the car from $38k to the now $35k...and they said "the current price was what it owed them but we want to shift some cars, so tell us what it would take for you to buy NOW".

Bull or not, they asked me what it would take for me to buy the car there and then....they came at a figure (without trying) of $33,500 and then suggested "would it take $33k to get you to buy it?"

So there MUST be still room to move and if all this is indeed true, then at that point ($33k), they have already dropped $5k from the ORIGINAL sticker price.

I was thinking maybe $32k would be a good starting point...

Then again, maybe I should start at 30k and work up to $32k...the car is worth it as far as I am concerned...

[Smoke Pursuit]

Originally Posted by troppo

Difference of opinion, then. I don't consider dealer's extended warranty to be in the same class as factory warranty, so to me they are different things.

How is that a difference in opinion, im just stating the facts, he has to get it serviced there to keep his aftermarket warranty...

[gngtho]

Originally Posted by David See

Well, we're talking about a $35k car.

When I asked them what was their best price, the salesman walked away and saw the boss and came back with two earlier MTA window notices pulled from behind the current one, showing me that they had already dscounted the car from $38k to the now $35k and the current price "was what it owed them".

Bull or not, they asked me what it would take for me to buy the car there and then....they came at a figure (without trying) of $33,500 and then suggested "would it take $33k to get you to buy it?"

So there MUST be still room to move.

what do you feel its worth.

i think you can drive out with only paying 28,500-30,00 easy.

just tell them you spotted another one for 29,999 if they say they cant match it you say youll get back to them walk out.
you'll see they will call you the next day to ask you how its going.

thats when you say ok finnal offer 32 thats if they have said they cant match it because then you'll know you have exhausted them, and you shouldn't push them otherwise you could loose it.

but yeh Pay if you can MAX $32,000

hope i have helped let me know how its going mate.

[Sam]

The extended warranty isnt worth the paper its written on, it simply locks you into getting them to service it. I wouldn't factor this into to the deal, simply tell them to keep it and find yourself a quality mechanic who knows his toyotas.
As far as the sale goes you are the one in the strong position, ironically right at the end of the month also. Just be firm and dont listen to the bull, ie: showing the two MTA notices, do they have 2 for every car on the lot??
Last car i bought within 5 minutes of entering the dealer, I simply stated, i want that vehicle and will buy it today if you have the right price on it. If they came back with the wrong answer would have walked out and thanked them for their time. We bought it that day!!

[gngtho]

and if its a 35grand car ask yourself what can a car with that price tag possibly owe someone its more likely to be dealers commision that your talking down 98% of the time.

[apolloxbgt]

Originally Posted by gngtho

what do you feel its worth.

i think you can drive out with only paying 28,500-30,00 easy.

just tell them you spotted another one for 29,999 if they say they cant match it you say youll get back to them walk out.
you'll see they will call you the next day to ask you how its going.

thats when you say ok finnal offer 32 thats if they have said they cant match it because then you'll know you have exhausted them, and you shouldn't push them otherwise you could loose it.

but yeh Pay if you can MAX $32,000

hope i have helped let me know how its going mate.

I know dealers that would chase you off they're yard if you approached them the way you claim you do.

When you buy a piece of flake,do you ask how much the fish shop paid for it?

[gngtho]

Originally Posted by apolloxbgt

I know dealers that would chase you off they're yard if you approached them the way you claim you do.

When you buy a piece of flake,do you ask how much the fish shop paid for it?

yep.

would you buy a orrange to find out latter its a lemmon?

And let them chase me its my money there missing out on.

case closed....

Lets not go further with this no arguments everyone has oppinions and were trying to help a fellow forum man with ideas.

[ieatsports_cars]

a few weeks ago i was looking at buying a au xr8 series 2 220 at russel bates ford in maryborough and i wanted to trade in my el futura, they wanted 20,000 dollars for the xr8 220 which i know is to much ! so i was a bit cheeky to say that i have only got 12 000 dollars to spend including trade in, they said the best we can do is 16 990 which is market value at what the xr8 is worth, with trade in on my car , so i thought that wasnt good enough so i walked out.

[gngtho]

Originally Posted by ieatsports_cars

a few weeks ago i was looking at buying a au xr8 series 2 220 at russel bates ford in maryborough and i wanted to trade in my el futura, they wanted 20,000 dollars for the xr8 220 which i know is to much ! so i was a bit cheeky to say that i have only got 12 000 dollars to spend including trade in, they said the best we can do is 16 990 which is market value at what the xr8 is worth, with trade in on my car , so i thought that wasnt good enough so i walked out.

you can find honest private sellers if you look around and pick them up for 10-12 so you did good.

[apolloxbgt]

Originally Posted by ieatsports_cars

a few weeks ago i was looking at buying a au xr8 series 2 220 at russel bates ford in maryborough and i wanted to trade in my el futura, they wanted 20,000 dollars for the xr8 220 which i know is to much ! so i was a bit cheeky to say that i have only got 12 000 dollars to spend including trade in, they said the best we can do is 16 990 which is market value at what the xr8 is worth, with trade in on my car , so i thought that wasnt good enough so i walked out.

A 220 would be a 3,and you expect to pay a premium if you are going to buy from a ford dealer.

I wouldn't be buying anything other than new,or demonstrator from a ford dealership,especially something as old as an au.