Negotiating good price - buying & purchasing used/new tips advice

[Elvis 3.0]

I did a quick search and surprisingly did not come up with much. I am certain there has to be some info on here somewhere maybe I just didn't find it. Anyway, with all of the opinions on the forum I figured I would post to get a few tips on the process of negotiating a fair process from a dealer when buying either used or new.

I.e. how to haggle with the dealer regarding your trade and everything else...

-do you give a firm number of what you will pay and then allow the dealer to add on 'freight', 'processing', etc...?

-is the dealer playing tricks if the deduct the value of the trade before or after/ and how do they calculate your trade v. how do you calculate your trade, etc... and what is fair?

-what are some proven tactics in general?

-what to watch out for?

-what to do and not do....

any help would be appreciated.

[JCL]

If you are trading in, there is only one number that matters, the net price you pay after the trade, and with all fees in. Everything else is variable. They can charge a higher price for the new vehicle, and give you more allowance for the trade (this makes some people feel good about their trade value) or they can reduce the new price (which makes other people feel good about their negotiating skills) and give you less for your trade. But the only number that matters is the net difference.

I would negotiate a new price, without a trade. See how good you can get. You want it all in, with no additional fees, ie the fees are all included. You want to know the bottom line. Tell them you haven't decided what to do with your old vehicle. Once you have the best purchase price offer, ask them for a trade allowance. Compare that to selling it yourself. Remember to consider the tax implications if you live in a state/province where you pay sales tax only on the difference, instead of on the full price of the new vehicle.

Know what your trade is really worth. Look in Autotrader, Craigslist, etc, and compare that to the blue book or black book price. Be honest. It probably isn't worth as much as you think it is.

Car dealers take advantage of uninformed purchasers by confusing the transaction with trade adjustments, finance fees, etc. Don't play that game. Tell them there is only one price you want to discuss, the out the door price. And if you get them to their best price, you can compare several dealers.

Some dealers ask what you want to pay. I tell those dealers I want to pay zero, but that I am willing to pay a fair price, which they will provide to me. I am not opening the negotiation by telling them what I will pay. Some dealers don't like the up front approach. Others respond to it well, and will give you their most competitive offer. I reward those dealers by purchasing from them, and calling the others back to inform them that their approach resulted in me going elsewhere.

If it is a vehicle that will have a maintenance plan, consider the added value of that work. If you are going to get it serviced there, it is often worth a little more to buy it there. You can get access to loaners, build a relationship, etc, which you can't necessarily do if you buy from the lowest bidder who hasn't invested in service infrastructure.

Don't fall in love with a single car and decide you just have to have it. It is just a car. If you onlly fixate on one, you will end up paying too much.

There's a start. Others will have additional tips. Good luck.

[Rado]

Exactly like JCL said. I use those tactics as well and it works wonders. Also, another important tip is to know that used car dealers usually add 20% to the car, so with that in mind you can negotiate the price, but don't overdue it because they have to make money as well on the deal, so usually you can aim for about 10-12% and they can profit from the rest, which is a win win for all.
Good luck.

[stevekat]

For a new car, use CarsDirect, or contact an auto broker. Negotiate your best deal without a trade, then get the trade evaluated. CarDirect is pretty no-nonsense if the dealer or dealers adhere to the promise of providing a no BS price for the car you spec.

[Elvis 3.0]

JCL - thanks for insight as always, and Rado and stevekat some helpful suggestions as well. After searching for this topic and not finding much would have figured that there would have a been a few more replies, but as evidenced by not coming up with anything in the search must not be 'as needed' info as I thought.

Thanks

[ofcrimson]

I am not sure if this has been mentioned above, but know your credit score. Your interest rate will be predicated on your credit score. Shop around at your local banks and credit unions to see the rates that are being offered, and understand what rate you can get from the banks/credit unions.

Every thing in the deal with a dealer is negotiable, and this includes the interest rate for the loan. Understanding your credit score, and current interest rates will give you much more leverage in the negotiation.

In this order: Negotiate the price (out the door including all fees) of the vehicle that you are purchasing. Negotiate the value of your trade. Negotiate the interest rate of the loan. Be willing to walk away at any point, or you lose your leverage.

Good Luck.