What are your negotiation tactics?
08-02-2014, 12:35 AM
#31
The bottom line, you don't need a tactic. Be yourself and explain what you want and why. If the dealer is a decent one, they will reciprocate.
08-02-2014, 12:42 AM
#32
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08-02-2014, 01:03 AM
#33
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JB in AR has already posted a pretty good list of guidelines. There is really no bible to negotiation tactics. Basically, you gotta know what the car is worth, and what you are willing to pay. Some may say they will stay firm with their offer, and will not hesitate to walk. Well, if it is the right car, and you want it, you would have to decide whether you walk or you pay. True, there are more options out there, but the dealer may also feel there are more buyers out there. A good deal is really in the mind of the buyer. Many times, buyers drive off in their new cars thinking they got the best deal...but they may not have. And then there are those cheapo's who steal a car when the dealer decides to just let it go for a little loss (YES, dealers do sell cars at a loss!!!) yet, they still believe that the dealer made a ton out of them. Buying a new car is easy and simple. Pricing, invoice, incentives - these information are easily accessible on the internet. You then shop on the internet from various dealers, and buy from the best offer. Used cars is a little tricky, you don't know what the dealer paid for the car. One thing is for sure...dealers will never take a vehicle in on trade, or from the auction, for more than what its average trade value is. Sometimes, they may pay clean value just to make a deal. Most dealers use the Black Book. You could use KBB, Edmunds, NADA, etc. They will all come in different values, and a little higher than dealer numbers. Once you determined a good estimate of what the dealer paid for the car, you would have to add on Certification costs, if it's from a franchise dealer and the car is Certified. This varies with makes, and I'm guessing for Porsche's it's about $2000? and could end up several thousands more depending on what needs to be replaced or fixed. From there, you generate your set of intelligent numbers, and decide how nice the car is, and how much you are willing to pay for it. Don't just "come up" with a number, and tell the dealer take it or leave it. That is not very smart, especially if you are a serious buyer, and you like the car. But of course, if price is your priority, then please look elsewhere. Find a pleasant and professional salesperson to deal with. Treat him as you would like him to treat you. You hate car salespeople, they hate "certain kind" of buyers too! Contrary to what some suggested, the General Manager does not have time for you, unless you are a loyal VIP customer. You may get to deal with a Sales manager, but most times, a salesperson will be delegated to deal with you. I recommend shopping online, and dealing with an Internet Sales Manager. Once you are able to establish a business relationship with a salesperson of integrity, you will be surprised how that contributes to a pleasant buying experience, and who stands behind your purchase after the sale. Sometimes, the cheapest price is not everything. From my whole year of looking for a C2S, C4S before ending up with my GTS, I have seen most Porsche dealers stacking on a hefty $10k-$15k markup on their preowned cars! This is from my estimates of their markup from cost to asking price, not considering any reconditioning & CPO costs. Non-Porsche dealers on the other hand, are more willing to let high-end vehicles go with a lower profit. They normally stack on $3k-$6k with minimal reconditioning, and no CPO costs. Now, if you are trading in a vehicle...that is another area to cover. It is all about the bottom line when the deal is agreed upon.
08-02-2014, 01:03 AM
#34
Before I was on the "other side" I would've asked the same thing
08-02-2014, 01:19 AM
#35
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Perk10, and you are absolutely right about bad dealers, or bad sales tactics in general, giving all dealers a bad name. Good dealers are hard to come by, so are good sales people. You and I both know though, to survive and succeed in the auto business, you need to establish a database of loyal repeat customers, and their referrals. And to establish that, you have to place importance on customer service, building customer relationship and their trust. From there, they WILL keep coming back to see you again and again. No brainer - why would they want to risk dealing with anyone else?? They may not even mind paying a little more buying from you.
But we also know there are those buyers who would drive 200 miles to save a few hundred dollars. Everyone has their different priorities. That's why there's Motel 6...and there's the Ritz-Carlton.
But we also know there are those buyers who would drive 200 miles to save a few hundred dollars. Everyone has their different priorities. That's why there's Motel 6...and there's the Ritz-Carlton.
08-02-2014, 02:39 AM
#36
I'm a former franchise car dealer. Been out of the business for about 10 years and the internet has certainly changed some of the sales dynamics; but still best piece of car buying advice I can offer is to walk into the dealership an hour before quitting time on the last day of the month. Even better is last day of the quarter and better still is last day of the year. If you're purchasing new, you can also time your purchase around the arrival of the next model year inventory.
Hit the dealer at the correct time and you will arrive at the bottom line quickly and painlessly.
Hit the dealer at the correct time and you will arrive at the bottom line quickly and painlessly.
08-02-2014, 04:09 PM
#37
Rennlist Member
I politely offer and ask if they'd accept a bit less than the amount I'm actually willing to pay. I usually get a "no," but then I come up to what I believe is a fair price above trade-in value based upon NADA, Kelly blue book (which is usually higher than I like) and Edmunds. I'm a firm believer that anyone in business who has something I want (even dealers) is entitled to make a profit. I don't agree they're entitled to rip me off.
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CMLDC (09-09-2019)
08-02-2014, 05:21 PM
#38
Rennlist Member
Above all else, a "good deal" on any car is a state of mind.
If you have a good experience, and you're happy with your purchase, leave it alone. The worst thing you can do is start asking other people what they think of the deal you got. There's always a better price, always. Once you reach that state of mind, don't muck it up.
If you have a good experience, and you're happy with your purchase, leave it alone. The worst thing you can do is start asking other people what they think of the deal you got. There's always a better price, always. Once you reach that state of mind, don't muck it up.
08-02-2014, 06:36 PM
#39
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Sorry, but I forgot to add something to my earlier list.
More and more later cars have "smart keys" which can be downloaded by the dealer on a key reader in the service department (if you are considering buying from an OEM same make dealer), which receives information from the car as you drive. This info can include average trip length, outstanding recalls by the VIN on the car, last service and date, uncleared critical OBDII codes, and battery state of charge. If you are considering a newer car, ask that the key be downloaded and a report printed for you to look at. I know BMWs have this capability on 2011 and subsequent models, but I'm not sure about P-cars. A key read only takes a couple minutes by a service writer, and if you are getting a PPI on a newer car, add this to the list. By the way, if you ever wondered why replacement keys on newer cars cost so damn much, this is one reason.
More and more later cars have "smart keys" which can be downloaded by the dealer on a key reader in the service department (if you are considering buying from an OEM same make dealer), which receives information from the car as you drive. This info can include average trip length, outstanding recalls by the VIN on the car, last service and date, uncleared critical OBDII codes, and battery state of charge. If you are considering a newer car, ask that the key be downloaded and a report printed for you to look at. I know BMWs have this capability on 2011 and subsequent models, but I'm not sure about P-cars. A key read only takes a couple minutes by a service writer, and if you are getting a PPI on a newer car, add this to the list. By the way, if you ever wondered why replacement keys on newer cars cost so damn much, this is one reason.
08-03-2014, 11:40 AM
#41
I'm not sure if this can be considered a negotiating tactic as much as a buying tactic:
I travel all over the northeast for work. So last time I bought I found two similar cars and did the research on both to make sure I'd be happy with either (black, manual, PASM, etc). These two cars were in different states (CT and MA) at dealers and they both had PPO. I printed a page on each car.
I went to the CT dealer and test drove the car and said "I'm buying a car today (in cash), it's either going to be this one or the one in MA, I like them both" (and I showed them the printed sheet). "what's your best no haggle offer. If it's cheaper than the MA offer, I'll be back this afternoon. If not I won't be back... I'm not going to haggle for 3 rounds of negotiation.
Then I went to the MA dealer and test drove that car. Same spiel there. "I test drive a similar car in CT, what's your best offer?".
Then I just went with the cheaper one. The price I ended with was considered pretty good even years after. I'm very calm, friendly and businesslike with sales people. No need to be a roughneck (but don't be a sucker). I think they can probably see that I'm not putting off the haggle-like-it's-a-bazaar vibe. I also used to be an auto tech so I usually know a lot more about the cars than most sales people but I don't advertise that info either.
I travel all over the northeast for work. So last time I bought I found two similar cars and did the research on both to make sure I'd be happy with either (black, manual, PASM, etc). These two cars were in different states (CT and MA) at dealers and they both had PPO. I printed a page on each car.
I went to the CT dealer and test drove the car and said "I'm buying a car today (in cash), it's either going to be this one or the one in MA, I like them both" (and I showed them the printed sheet). "what's your best no haggle offer. If it's cheaper than the MA offer, I'll be back this afternoon. If not I won't be back... I'm not going to haggle for 3 rounds of negotiation.
Then I went to the MA dealer and test drove that car. Same spiel there. "I test drive a similar car in CT, what's your best offer?".
Then I just went with the cheaper one. The price I ended with was considered pretty good even years after. I'm very calm, friendly and businesslike with sales people. No need to be a roughneck (but don't be a sucker). I think they can probably see that I'm not putting off the haggle-like-it's-a-bazaar vibe. I also used to be an auto tech so I usually know a lot more about the cars than most sales people but I don't advertise that info either.