Need help. First time new car negotiating

[pharmassive]

First of all, I still have the only three cars I have ever bought. All three were negotiated for me. Vw I was 17, explorer was my father and laws, and Volvo was from dealership my parents use exclusively. So now I need to replace my 14 year old gti. My wife and I decided on a new passat (built in Tennessee). We want to order one instead of picking one of the lot. I'm trying to get the best deal possible, so any advice from those with experience would be helpful.

 

I've went on Edmunds and looked up the "fair price." is this at all realistic? Also would the fact that the v6 is in high demand make a difference? I guess i need help with the procedure of ordering the car, and what my strategy should be. Thanks in advance for any replies.

[3PedalMINI]

Im 22 and and have owned/negotiated 4 out of the 5 cars for my self. My first car was negotiated for me but the other 4 the deals were done entirely by me. Ive also negotiated a few cars for friends and for my parents so the total is around 12 or so.

 

Basically the trick is to never let your emotions show IE dont seem too excited. NEVER negotiate monthly payments because they can fudge the length of the term to pretty much whatever meets your goal. Always negotiate on the out the door price (IE what your going to finance or pay) Edmonds is worthless as MSRP is not what the dealer pays, Its a myth. Use that as your starting point though. Also, go to the VW forums and ask what everyone else is paying. This helped when i negotiated my dads new Audi and saved him close to 5 grand

 

Sense your ordering it you have to play the other game. Sense your at the mercy of the dealer you need to go around (or call) at least 4 dealers and tell them that your looking to order a new VW. Then go around and around with the best price. Tell them that your willing to drive to make the deal happen too. This will take some time but can save you some money in doing so. Sense VW is like GM and their are alot of dealers close to everyone you can call around for the best price. Get everything in writing, find the lowest number and then go to the dealer that you liked the most (or closest) and say "can you beat this". Sense every dealer is buying the car from VW at the same cost then they will either say yay or nay. if they say no, walk out and try the next if they say no too then this is probably the bottom number they can do. Then choose who you want to give the business too.

 

Dont let them intimidate you! you are the one in charge, not them. Also, negotiate for the lowest number and then do the credit check. Dont let the dealer ask for a credit check up front because you dont want too many hard pulls on your report, this will severely hurt your report and could cost you a point or two on the interest rate. This method works well for houses but NOT for cars. This method is targeted to younger couples, dealers say they dont want to waste eachothers time if your not approved blah blah blah. What they really are doing is getting you excited that you can drive off with a new car if your approved.

 

If you havent done so already, now is a good time to pull your credit report and see where you lay and if your score is high enough to take advantage of the Manufactures Financing offers. Also, it doesnt hurt to check your local credit unions or banks to see if their rates are lower. Nothing is worse then getting all excited and finding out that your credit is lower then expected and your payments went up 60 bucks a month more then you were expecting at the table

 

Good Luck!

[ChargerMatt]

^ What he said

[savi01]

What Mini said is perfect. Don't ever let them intimidate you. EVER.

 

I've been with family/friends during negotiations at dealers and have picked up a few things;

 

1. DON'T be afraid to just get up and walk - if the salesperson wants this and that, or keeps playing with numbers, or calling in another "manager", or being disrespectful even the slightest bit, tell them you'll gladly take your money to a dealership that deserves it. Get up and leave. They'll come after you.

 

2. Also like Mini said, don't ever tell them how much you want to pay per month, how much you're going to put down, etc etc. If they keep asking, keep telling them you don't want to discuss that yet. Work out the price of the car first, if you have a trade-in, don't mention it until the final price is negotiated *AND IS IN WRITING*.

 

3. RESEARCH. You mentioned Edmunds, which is good. Also check out 100% Haggle-Free New Car Price Quotes from Local Dealers - TrueCar .. and again like Mini said, join forums, ask around. Get an idea of what people paid for similar cars, and pick the price you want. Basically, decide on how much you WANT to pay, and decide on what the MAX is you can/would pay for the car you want. If the dealer won't go anywhere near your "want" price, or even the max, just get up and walk.

 

Just remember there's always a better car than the one you're looking at out there. I was in the used car market for many months before I finally got my 08 C300 a couple weeks ago. I missed a chance to get a really nice 08 Audi A4, and was just bummed and felt like I'll never find another car for that price range/features, but the wait paid off. Good luck, I hope these tips help, and hope you get the car you want!

 

P.S.; I was with my uncle when he went to get his Chevy Avalanche a couple years ago. Salesperson sent our offer to the sales manager, and as we were waiting another salesperson came and sat at our table, and laughed at the price we offered. When I asked him if he was the guy to give the final yes or no on the offer, he said no. Immediately, he got to hear a few of my impolite words. Don't let them play those tricks where they send one person after another to mess with your head. Soon after he got up and left. A couple hours later, we got the truck for the offered price; the look on that guys face = priceless.

[BlueGenCoupe]

I read half of that novel n gave up.

 

My suggestion is to go in ask for their best price, then try to negotiate a lower price. When they say that's their best price, stand up, shake the persons hand and start to walk away. They will stop u right away. Even if they give u a better price, walk out. Go to another vw and tell them this is the price u got and tell the sales person u rather do business with them, so u want a better price.

[LFairbanks]

Also, negotiate for the lowest number and then do the credit check. Dont let the dealer ask for a credit check up front because you dont want too many hard pulls on your report, this will severely hurt your report and could cost you a point or two on the interest rate. This method works well for houses but NOT for cars. This method is targeted to younger couples, dealers say they dont want to waste eachothers time if your not approved blah blah blah. What they really are doing is getting you excited that you can drive off with a new car if your approved.

 

If you havent done so already, now is a good time to pull your credit report and see where you lay and if your score is high enough to take advantage of the Manufactures Financing offers. Also, it doesnt hurt to check your local credit unions or banks to see if their rates are lower. Nothing is worse then getting all excited and finding out that your credit is lower then expected and your payments went up 60 bucks a month more then you were expecting at the table

 

Good Luck!

 

Some good info there Brendon. But I don't know if I agree with the statements on the credit report. I honestly haven't experienced or heard of that. I could understand it if you were applying for a credit card (multiple), but not an automobile loan.

 

For those just starting out my best advice would be to pay your bills and pay them on time. I remember when I was trying to establish credit and nobody wanted to give it to me. It was hard. Not sure how things are in that regard now days. IMHO if you have a good credit score the banks are going to want your business being that your a low risk and your going to be able to dictate to them what your willing to pay. Not the other way around.

 

Credit Report Inquiries: How Credit Checks Affect Your Credit Score

 

Inquiries And Rate Shopping

 

When you’re shopping around for mortgage and auto loans, you want to get the best rate – and you should. You might worry that having your credit checked by several lenders could hurt your credit score.

The good news is that most credit score calculations treat all mortgage and auto inquiries as a single inquiry, as long as the inquiries are made within a certain period of time. For the latest version of the FICO score, this period is 45 days.

[Tim]

Absolutely be willing to walk out!

 

I swear the best deal I ever got:

 

I was test driving a Mercury Sable (didn't really want it, but that is beside the point) when I stopped at a Chevy dealer. I told the salesman that I was on my way to purchase the Sable and told him I wanted him to give me a reason not to get the Sable. The only Chevy I was interested in was the Blazer. Well, they gave me a great reason to get the Blazer. A friend of mine went a month later to try to get the same deal and they nearly fell off their chair when they looked up the deal I got.

[Fatdaddy]

Three tips for you. 1) If you are financing, arrange it with your bank or credit union prior to shopping. Never disclose your finance terms to the dealer. Negotiate with them as a cash buyer. If you want to see their best finance offer, let them make it without disclosing yours. If you have 3.9% money and they know that, it's real easy to beat. And they will never let YOU know that they have some 0.99% money.

 

2) Always negotiate and compare price as cash out the door. Financing, if you let them play that, is rate and term. Never play the monthly payment game.

 

3) Find out what the dealer pays for the model you seek. That is all the car is really worth. Make your cash offer starting there plus e.g. MSRP is 30k, dealer buys from manufacturer at 24k. You start at 24k plus $200.00 cash. (they are in business to make money)

 

 

Sent from my iPhone 4 using an advanced and highly technical process beyond your understanding.

[dipolley]

Remember that the price you see on the window is not the price. You can automatically tack on at least $500 in dealer fees and destination charges. These are internal fees the dealer charges you to cover their own overhead. Personally I think it is a detestable practice. Plus there is taxes. And keep in mind you have to register it and insure it. So what ever the price says, you can add about 10%. Most people get surprised by the added fees, taxes, and expenses when they buy a car. Then there is the interest rate.

 

Look over every inch of the vehicle. If you are not happy with absolutly everything (scratches, added dealer badgeing, broken anything) tell them what needs to be fixed and get in writting on what is called a "We Owe You" sheet. If you require anything and it is not on this sheet then they will not give it to you. They will keep saying "we'll take care of that" but until it is writting, they don't have to do anything. Long story short: We recently got burned on a used truck that was not washed when we agreed to buy it and we found a few thousand dollars in hail damage when we got it home. Took nearly a month to get satisfaction. Plus they didn't put 1 item on the we owe you sheet and now I have to pay to fix it myself.

 

You can negaotiate other things. If they won't budge on the price, tell them you want a set of weathertech floor mats, or upgrades/parts at a discount, oil changes, etc. You can get a deal or discount on these things, and they make a tiny bit more money or there will be no cost to them.

 

And don't be afraid to walk. You are not committed until you sign. And if they want you to sign an intent to buy document, just get up and leave immediately without a word.

 

And last, check yelp and other reviews on the dealers you intend to go to. Read the good and the bad.

 

That's all I got.

[Chuckkilo3]

I used Consumer Reports to buy my 2011 Avalon. I did the majority of the communication by emails. The build and buy report gives you the dealer invoice prices for the car and any options. It was the easiest new car purchase I have had out of the 6 new vehicles I have purchased over the years.

[Z71_Denali]

Brendon hit the nail on the head with this subject!

 

i've only ordered one car, my Camaro. i priced it at 4 dealerships in Houston, not one was below MSRP. this was back in 09 when they hadn't even hit the lot yet. i ended up paying a premium to be one of the first with one, but some dealerships were tacking on an additional $10k which was bogus!

 

a couple things i'd like to emphasize that the others have mentioned...

• be willing to walk away
  
• don't show your emotions
  
• price it at several dealers and see what they can sell it to you for; it doesn't hurt to tell them your shopping around at other places as well. gives them an incentive to get the commission over another dealer.
  
• negotiate the sale price, not the monthly payments. make that very clear with them.
  

 

a new website that i've played with is 100% Haggle-Free New Car Price Quotes from Local Dealers - TrueCar go on their to price out the vehicle you want and see what others in your area are paying. take your research from there with you to the dealership as ammo.

 

are you trading a car in? i'm assuming the cars you mentioned are all paid off? if so, you'll get more money selling privately. only time its better to trade in is if you still owe money on a vehicle, because you don't physically have the title; the bank does. if your trading in a car that you are still financing, DO NOT let them fool you with a "trade-in value + tax savings" number. its a made up number they fool people with to show that they're paying less taxes by trading in which lowers the out-the-door price. negotiating a trade-in value is the most frustrating part of buying a new car. they will always low ball you. let them know your going to have it appraised elsewhere before you make a decision. it'll give them an incentive to raise the value of the trade-in.

[goodmanXX3]

I read half of that novel n gave up.

 

 

How to Read a General Motors Invoice (2012 Camaro) - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums - Camaro5.com

 

^ i think that will help you out

[Chuckkilo3]

are you trading a car in? i'm assuming the cars you mentioned are all paid off? if so, you'll get more money selling privately. only time its better to trade in is if you still owe money on a vehicle, because you don't physically have the title; the bank does. if your trading in a car that you are still financing, DO NOT let them fool you with a "trade-in value + tax savings" number. its a made up number they fool people with to show that they're paying less taxes by trading in which lowers the out-the-door price. negotiating a trade-in value is the most frustrating part of buying a new car. they will always low ball you. let them know your going to have it appraised elsewhere before you make a decision. it'll give them an incentive to raise the value of the trade-in.

 

 

The first question they usually ask is "do you have a trade in?" That tips the negotiations in their favor. If you are planning on trading in a vehicle, it should be offered only after you have negotiated a price on the vehicle you want to purchase. Otherwise, they will just juggle the numbers and you will never know how much you actually got for your trade in.

[GXPaycheck]

You need to read this!

 

Confessions of a Car Salesman - Edmunds.com

[JBlack151]

Wow good article. Going thru the same process and about to trade in my wife's Traverse for a Subaru Impreza. We have a "Family & Friends" discount already but I need to read this article again and help benefit us with our trade in. Thanks for sharing!

[mc2hill]

I will reiterate the point regarding financing. It is in your best interest to be approved from your bank/credit union before walking in the dealership. And, as others have said, you don't need to let the dealer know the rate, just that you have already been approved.

I was a loan officer for several years before returning to school, and we never had an issue with several credit reports being pulled in short amount of time, as we knew how the dealers operated. Now if the number of reports was close to double digits in a few days, that could indicate someone was being turned down a lot.

[Chuckkilo3]

You need to read this!

 

Confessions of a Car Salesman - Edmunds.com

 

 

That's way too much to read. It would be easy to sum it up in a few sentences.

 

Keep all transactions separate. Purchase price first. Then finance if you are using the dealer for that. If you have a trade in, inform them after you have settled on a purchase price so you will know how much they are willing to really pay for the trade.

 

They do not need to concern themselves about how much you want to pay monthly. You should already have done your homework in that department based on your credit worthiness and different interest rates, etc. I always know what I will be paying well before I get to the dealership. I use whichever financing that has the lowest interest rate. Sometimes it's the manufacturer and sometimes it's my credit union. I also know how much I will put toward the down payment.

 

As far as them telling me they have to talk with the sales manager, I quickly tell them that I don't have time to waste. If you can't meet my offer, I will go elsewhere. My time is valuable just like yours.

[BrianT]

What I do/did was to go out and find a dealer way way out of your market and go practice your technique out on them! If you mess up, no big deal your not using them anyway. Go to the dealer you want last.

 

I haven't bought a new car that wasn't a "family plan" so all the pricing is like 5% under dealer cost. So I had to always try to get the most for my trade first!! I had them agree to what I wanted my trade for and then show them the paper work that basically told them I get the new car at cost. Every dealership but 1 said have a nice day to me because they couldn't do what I wanted. They last dealership and closest to me gave me 500 more for my trade than I even want and gave me the truck at dealer cost. The truck I traded in was a 98 Dakota with 100k on the clock. I brought it for 22,500 fully loaded and they gave me 12,500 for it when I brought my Ram in 03.

If you were closer I would say come on out and I'll go with ya!!!! I love this stuff!!!!!! In fact my friend I go from time to time just to have fun with dealerships!!!!

[mc2hill]

If you were closer I would say come on out and I'll go with ya!!!! I love this stuff!!!!!! In fact my friend I go from time to time just to have fun with dealerships!!!!

 

You're a sick man Brian!

[savi01]

Some might have said it's too much read but if you're really serious about getting the best deals, you gotta do the research, and you have to have a plan. An extra few minutes to read another paragraph isn't going to kill you.

[pharmassive]

Thanks for all the great advice. I have gotten ahold of 2 local dealers over the phone, told them that I'm serious and ready to special order a car and am shopping around. They both said they would call me back on Monday. Today is Tuesday. No answer yet... lol.

[BrianT]

You're a sick man Brian!

 

Thank you!!