Car Negotiating Tips

Here ya go TJ:

The Times guide to buying a used car.
There's a section on negotiating.

Good Luck

You've already got one very bad strike against you when you said you'd love to come home with a new car this weekend.

Buying a car when you absolute need a new one is the worst possible time.

As much as you can, be patient. You're not going to miss the deal of a lifetime if you wait. And if possible, take a friend along with you. I have actually been asked by a couple of my female friends to go with them when they buy a car because they believe that women are automatically taken to be easy prey by car dealerships. I'm not sure about this, but having a friend along can help.

Also, know the dealer's cost for the car before you go looking. This is easy to do on the Internet. Remember though that a dealer also gets other incentives from the car manufacturers. If you plan on trading cars, know what your car is worth wholesale.

If they need the keys to your car to take it and get it appraised, fine. Ask for your car keys back as soon as they tell you what your car is worth (which may or may not be what it's actually worth). If they refuse, tell them you will not discuss trading vehicles any further until you get your car keys back. Then leave that dealership.

Do not pay for dealer installed "options" such as undercoating and pin striping. Just tell them you are not paying for any of it. For the most part, these are just thing dealers add to jack up the price of the vehicle.

Good luck to you.

Be patient. Use your poker face. Leave the Miss/Mr Nice person personality at home.

Be prepared to walk out. In fact, do walk out. The managers will run after you if you really want to make the sale.

If not, try another dealership. Not all dealerships are created equal -- some are good, and some are really bad.

Know your MSRP and dealer's price. Negotiating using the dealer price and NEVER pay MSRP. In fact, I have successfully talked them into giving me the dealer price (they still make money on the car, trust me). You just need to be firm and be prepared to walk out.

There's another thing my friend told me. If you like a car on the lot but it has certain features you don't care about, like sunroof or something, tell them you don't want to pay for that option, but you want the car anyway. Say, the sunroof costs $2000 MSRP, you tell them to knock the price off $2000. They will say, "no way!" And you say, "you have a deal right now if you do that" -- again, be prepared to walk out. Actually WALK OUT. The thing is, it's expensive for the dealership to keep inventory, and they will try to do what they can to get the cars off their lots. So if you know your stuff, they will try to make the sale.

Make sure you read all the fine prints. And if you're leasing or financing, make sure you read and understand everything, and make sure they didn't sneak in numbers and prices that you did not negotiate and come to an agreement on. Sometimes what people didn't realize, for example, is that they agree on a price, say $20,000, and then the lease agreement uses the MSRP (say, $25,000). The dealer will try to con you with that. You have to tell them that's BS. They need to use the negotiated price in everything they type up.

Know your math when you deal with financing or lease agreements. Know all your terms. Don't let the finance guy at the dealership intimidate you.

Don't buy extra services such as rust proof, etc. Those are cash cow for them and utterly overpriced or useless. You may consider an extended warranty if you intend to keep the car beyond the original warranty. Again, negotiate.

If you're trading in, know your blue book values. Look it up on Edmund Used Car prices. If your car is in good shape, you should be able to stick with the blue book value. Or sell your car yourself instead of trading in. Again, that's where the dealership can screw you and make a huge profit.

If you have a friend who knows how to bargain and negotiate (my friend Eddie is EXCELLENT -- he's a dealer himself so he knows all the tricks), bring them with you.

One of the best negotiating tools I know is to get financing somewhere other than the dealer. The last time I bought a vehicle that I financed, I made arrangements to finance through my credit union. Dealers will often try to use the "but it only costs $XXX dollars a month. Don't get fooled by that--insist on talking about the selling price, not the monthly payments.

By far the most important thing is to do your homework. Determine ahead of time (or after you've found a vehicle and walked away the first time) what you are willing to pay. Then go to the dealer and tell them. They might try to tack on handling fees, undercoating, or some other such junk, but don't let them. I tell them, I want to be able to come in with $ZZZZ dollars and leave with a car. The final bottom line needs to be $ZZZZ. Then be prepared to walk out if they don't accept it. Like someone said earlier, you won't be missing the only chance of a lifetime--there are a lot of good deals out there.

One other trick is to go to the dealership an hour before they close, and close to the end of the month. I once had a salesman call me at home, after I walked out, and an hour after the dealership closed, to tell me to come back and he would match my conditions.

Another thing you've got in your advantage is that you're looking for a larger vehicle, with presumably worse gas mileage than the small most-efficient ones a lot of people are looking for. Dealers should be more willing to deal on minivans and SUVS just to get them off their lots so they can replace them with cars they can get a better mark-up on.

Good luck.

tjwriter said:

Perhaps I should clarify a few things a little further.

1. I won't have anything to trade in. My vehicle is worth zilch.

No vehicle is worth zilch if you can convince them to take the trade; the amount you get for the trade is really just on paper anyway. A few years ago my husband traded a 1968 piece of crap Pontiac Bonneville that you could no long start with a key (he had to direct wire the ignition with a switch) and - on paper - got money for it as the trade. It - and many other cars - are wholesaled out or sent to auction by dealers. Heck, I traded one once that had quit on me but I got it running long enough to trade it off.

2. I'm am definitely getting something used. I see no point in paying for all that depreciation, and a car that's two or three years old is perfectly fine with me.

Good. Right now it's a buyer's market and the car lots are either full to bursting or the dealers have been down sizing. They WANT to sell right now but the thing to remember is that even if do - never let them know that you NEED to buy.

3. We've been talking about getting a minivan for probably about six months now. I've been seriously looking at and comparing various prices since I found out I was pregnant as my current vehicle is not big enough for two kids and all the necessary stuff.

4. I could in theory drive my car longer, but I've had enough and I don't want to any longer. Besides whatever blew yesterday has a smell that makes my throat burn and my stomach roll whenever I am in there for long periods of time.

Sounds like time to make a change, then

5. My mom suggested I take my uncle with me because he's apparently a real hard ass when it comes to doing this type of thing. I already figure that Pleasant Personality is going to have to stay at home. I will be borrowing Jaycinth's alter ego.

Click to expand...

You don't have to unpleasant, just firm and not fall for any sweet talk tactics. If your uncle is good at this kind of thing, by all means, take him. When I first started out buying and trade cars, my dad went with me for moral support but I made the deals. Salesman would look at him and he would shrug his shoulders and say, "It's her deal, not mine."

I like to say I was weaned on a car lot and I all but was. My dad had a good friend who had a used car lot and I spent many Saturdays hanging out there, learning all the tricks of the trade. My dad is also a savvy car trader and I learned a lot from him.

Although I've been married for almost 14 years, I buy the cars and I make the deals.

Things to remember are:

1. Never get too attached to a single vehicle; there is always another one down the street and I will tell them that as well.

2. If the deal not working out like you want, walk. Sometimes they will come after you and give you what you want.

3. They have a lowest price that they will take figure in thier mind; you need to have a highest price you'll pay figure in yours and don't compromise it.

4. They're in business to sell and you should never feel hesitant or guilty about hammering out the deal.

5. If the car salesman says he can't do deals, ask for someone who can. There will be someone who has the authority, there always is.

I haven't financed a car in years - we buy the car outright which is apparently uncommon these days. That gives me a little more bargaining power but as long as your credit is good, you should be able to finance w/o problems.

Hey tj

Check out www.edmunds.com
They have a ton of information available about pricing, negotiating, performance etc... They even have forums with just about every type of car and buying situation you can imagine.
Sounds like you want a used car, so I would say start there. You should be able to gather pricing information for your area, including what the dealer would charge, what a private party would charge, etc...
THere are also many dealers who offer certified new used cars which come with a better warranty if that is of interest to you.