Haggling with Dealers?

becareful when using NADA as a price point as it gets its values from car sales in specific regions. problem is that dealers often reprice deal to original asking price on unit to bump up trade value for financing reasons, and to cover the loss or upside down nature of trade in. this skews the price suggesting car had higher resale value.
 
I don't know where to start...I have done it all from sales, to f&i to the desk. Dealerships are there to make money. If you are buying used, most cars getting 3500 back of book and even worse on the more expensive cars. You really need to know what the real value of the car is, then base your offer of that, not what the dealer has it listed for.



TAKE A PAYMENT CALCULATOR WITH YOU...if you plan on financing. A smart person will over inflate your payment to get more profit in the back (its call "leg" and even though it's unethical, dealers do it all the time) like selling you a warranty "for only $18 per month". READ EVERYTHING.



The one benefit of buying from a dealer vs buying from an individual, there is recourse when buying from a dealer.



If you have questions, just ask and I will tell you what I know.
 
That is one of my favorite car shopping activities. Just some general tips bc a lot of good things have been said.



1. Always do your homework and research. You should definitely know (or have a good idea) of what you want and what price range a car typically sells for before you shop.

1a. You should also have a good idea whether you intend to buy new or used.

2. You should do a thorough financial analysis of your cash on hand, current expenses, and include a (sketchy at least; detailed is better) projection of your expected monthly payment and expenses with this new vehicle.

3. Storage; you have to have a place to put it (or plan a place to put it)

4. Car's expected life expectancy; How long you plan on keeping it all things being equal.



5. Look at an online price comparison like edmunds. It will give you a great start in knowing what an average price for a car should be.

6. Start locally and get a first price. Never, (repeat) never settle on a car on the first visit (although sometimes luck will have it that the first dealer will end up being the place you buy from....you won't know that until you've shopped around though).

7. Listen to the sales person's pitch, then haggle (negotiate) intelligently. Realize this; A dealer already knows his bottom price, and if you come in below it then that dealer will not sell you the car.

8. Shop around. A better price/deal/car can always be found. Never negotiate with incentives or finance rates. You want to negotiate with the selling price; incentives will come automatically (if its offered). How sweet a deal it could be to get the best price possible and incentives as a bonus.

9. You also need to figure out who will finance your deal. This should be a part of your financial analysis before shopping. Do not allow a dealer to finance the car without checking out the specifics. You could potentially get ripped off if you do not find out all of the aspects on financing before purchasing a car.

10. When you find the best opportunity, act! Waiting or indecisiveness will cost you to lose a good price or car opportunity; However, if you are not sure that you want the car or if its the best deal then move on and continue shopping.



It can be fun; as long as you maintain control. Regardless of what is said by anyone, ultimately you will make the decision whether to purchase.
 
A couple rules I learned from my dad:



-Make sure your car is CLEAN outside once your serious and ready to talk trade-in value.



-If you drive a car worth more than $25-30K which are not trading in, PARK OUT OF SIGHT. If a salesman sees you come in driving a newer Lexus or Audi he's going to get the impression that "you've got money" and will pay full/higher prices.



-Be firm and walk-out if the price isn't good. Salesmen will usually follow you out and try to make a deal.



-Don't praise/compliment the car or show your very interested. If the salesman knows you love the car he'll think your willing to pay list.



-Buy from a name-brand dealer. Non-name brand dealers get the cars that were in accidents/in worse condition. Stay away from "---- Fine Cars" type places. Most OEM dealers won't keep accident cars on the lot since they're worth much less and aren't worth the trouble. Even if it's a Honda on a Dodge lot, you're safer than a no-name place. Name-brand dealers will sell cars that they can stand behind and offer proper warrantees. None of this "Lubrico" ********.



-Check the car CAREFULLY. Look for accident/replacement parts everywhere possible. Remember, if a car is in an accident, it will not show up on car-fax or carproof if the damage wasn't reported to the police. If I crash into a tree and pay $10,000 out of pocket to fix a car it's not on the VIN check.
 
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