This is going to be an extremely detailed post, since I want to provide you with as much information as possible. Keep in mind, the more people that use this to purchase their car, the more dealerships will catch on.
In January, I began doing extensive online research on how to purchase a new car at the dealership. At the moment, I learned that talking with a salesperson is pointless, and purchasing the vehicle online would produce a cheaper price. I was looking for a 2006 Honda Accord Coupe EX in black and received many quotes (I searched in Austin, Dallas, Houston).
MSRP = $23,900
Invoice = $21,018
I didn't pull the trigger though. I continued doing research and found a site called Fighting Chance (
http://www.fightingchance.com/). It was only $35 to purchase and I thought it would give me an edge to getting a great deal.
Basically, James Bragg (the owner, very nice gentleman to talk with), sends you all the information about the vehicle you are looking to purchase, as well as a sales tactic called the "FAX ATTACK". You use all this information and form a 1 page fax to send to the dealership's Sales Manager (you need to call all the dealerships and ask for their name and nearest fax machine number).
The best time to fax is 1 week right before the month ends (since they have to meet monthly sales goals). After you fax to maybe 15 or more dealerships (which you should do early in the morning so they see it right away), expect to receive calls from 11-2, and a few in the late afternoon. They will call you and give you a quote, in which you will respond by saying you are waiting to hear from a couple of more dealerships, and will call them back the next day to let them know where they stand. Do not negotiate with them yet!
Expect a total of half dealerships to call. You're just taking bids, and you're not negotiating. After receiving all bids, list them on a sheet of paper from highest bid to lowest bid.
Next day, early afternoon, call them from highest bid to lowest bid and tell them the lowest bid you received (and bite your tongue!). If they decide to give you a lower bid, add it to the bottom of the list. Keep it going until you receive the LOWEST bid possible. Arrange when to come in, and you're set!
My final purchase came out to be exactly $22,000, after taxes and fees.
Believe it came out to $1000 BELOW invoice.
Let me know how it goes! Good luck to everyone!
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