How to haggle on a new car

[lisakramer]

Hi all. We were in a serious car accident on the 4th and the car is totaled.
Hubby is thinking of a Honda civic si sedan. We haven't bought a car in ages.
What are the ground rules for haggling? How much can I expect to get off sticker price?
I appreciate any help!

 

[smcabee]

I always use Truecar.com formerly zag.com to get my cars. No haggling required. Just a bottom line price on your car. My last car I bought was a 2012 Toyota Camry xle fully loaded with MSRP of 35k for 27k with truecar.com You just put in what you want to buy and the options you want and they will email you quotes. Yes you have to put in a phone number as well and they will call but I never answer I just go by the emailed quotes they send me. If the lowest price is on a car a dealership farther away than iw ould like, I take that quote to the closer dealer. Good luck in your car search.

 

[BridgetBordeaux]

This is a great time of the year to get a car as far as prices go. There are rebates and/or special rates for loans.

Truecar.com, AAA buying service, Costco/Sams, can all be resources for you.

Generally speaking, using the internet sales dept can also reduce the hassle factor.

And yes, pit one dealer against another to try to get the price down.

Others will add more details here. By taking in all the wisdom, you should feel more comfortable with the process.

Good Luck!

 

[cjnix29]

also, not sure where you or your husband work, but there are sometimes corporate discounts. We get some kind of discount, and my husband works for a food company. So doesn't have to be automotive related. Do your homework before you go in, know what other dealerships are offering for the same car, and what the car is actually worth. And don't be afraid to walk away. There are plenty of car dealerships out there that want to take your money. My husband likes to drive new cars, so I am negotiating a new deal about every two years. (yeah, I hear the gasp go out on the budget board). My biggest tip is to not be married to a certain type of vehicle. We always end up buying whatever is the best deal on the lot. Whether it is last years model, but still brand new, or a demo they need to get rid of, or whatever. I agree with the other posters about checking out truecar to get a sense of what you should be paying. Good luck!

 

[TheRustyScupper]

CAR BUYING RULES:

1) NEVER mention a monthly payment goal.
. . . this is a license to steal for the salesman
. . . they will always fine a way to meet your payment
. . . especially when they could have sold for much less
2) Always have them give you the price for your trade UPFRONT
. . . have them estimate it before your select a car you like
. . . many adjust the car trade price based upon your new car markup
. . . get the trade price, or walk to another dealer
3) Research the car on the web
. . . look it up in KBB.Com and Edmunds.com
. . . know the invoice and the average sales prices
. . . a good price is 2%-3% over invoice
. . . the volume dealer gets 5% of the invoice back, plus bonus money
. . . do a Google for incentives on the car, asd it could be THOUSANDS
4) If you find two cars you like, pick on that has been on the lot a while
. . . 60-90 days on the lot means they are paying interest on the car
. . . they want it move it FAST
. . . many times, there is a bonus to the salesman to sell it
. . . you might get some of that bonus if you bargain tough
5) Go on the last Tuesday of the month
. . . Tuesday are terrible car sales days with few buyers
. . . at the end of the month there are sales to make for quota or bonus
. . . go 1-hour before closing and talk past closing
. . . the sales people Neill not want a good prospect to leave the lot
. . . my wife saved and additional $2,300 by doing this
6) Read articles
. . . Edmunds.com has a series of articles about car dealer tricks
. . . remember, they do this every day
. . . you do it once every few years
. . . they have the advantage!
7) If you don't get your price, be prepared to walk away!
. . . nothing gets there attention like you getting up to walk
. . . the will do everything to keep you there
. . . but, do fall for prices you don't like
. . . better to walk than pay too much

NOTE1: For leasing, do not mention a monthly payment. Plus, ask these
questions. If the dealer hems-and-haws, run like crazy. They are trying
to fool you and hide costs and profits.
. . . what is the sales price of the vehicle
. . . . . . some hide the sales price
. . . . . . some charge sticker or above
. . . what is the residual value of the car at the end of the lease
. . . . . . some cut the value to get more interest and higher profit
. . . . . . this can add THOUSANDS in profit, even on a cheap car
. . . . . . I saw a Dodge Dart residual at 1/2 after three year lease
. . . . . . I know of no new car that depreciates 50% in three years
. . . what is the interest rate
. . . . . . money costs money
. . . . . . most leasing people bury the interest rate
. . . . . . some lease interest rates are as high as 22% !

note2: CAR BUYING TIPS AND PROBLEM AVOIDANCE:
. . . Car Dealer Traps: Car and Driver Magazine Tips
. . . Car Dealer Tactics: BankRate.Com Hints
. . . Car Dealer Tricks: Car Dealer Tricks
. . . Car Dealer Tricks: Car Buying How-To

 

[Leshaface]

Thanks for this thread OP

DH and I have NEVER purchased a car before (still driving the ones we got in high school/college) so we have no idea what we're doing.

Wish one of you DIS'ers could come with us to the dealership.

 

[tvguy]

CAR BUYING RULES:

1) NEVER mention a monthly payment goal.
. . . this is a license to steal for the salesman
. . . they will always fine a way to meet your payment
. . . especially when they could have sold for much less
2) Always have them give you the price for your trade UPFRONT
. . . have them estimate it before your select a car you like
. . . many adjust the car trade price based upon your new car markup
. . . get the trade price, or walk to another dealer
3) Research the car on the web
. . . look it up in KBB.Com and Edmunds.com
. . . know the invoice and the average sales prices
. . . a good price is 2%-3% over invoice
. . . the volume dealer gets 5% of the invoice back, plus bonus money
. . . do a Google for incentives on the car, asd it could be THOUSANDS
4) If you find two cars you like, pick on that has been on the lot a while
. . . 60-90 days on the lot means they are paying interest on the car
. . . they want it move it FAST
. . . many times, there is a bonus to the salesman to sell it
. . . you might get some of that bonus if you bargain tough
5) Go on the last Tuesday of the month
. . . Tuesday are terrible car sales days with few buyers
. . . at the end of the month there are sales to make for quota or bonus
. . . go 1-hour before closing and talk past closing
. . . the sales people Neill not want a good prospect to leave the lot
. . . my wife saved and additional $2,300 by doing this
6) Read articles
. . . Edmunds.com has a series of articles about car dealer tricks
. . . remember, they do this every day
. . . you do it once every few years
. . . they have the advantage!
7) If you don't get your price, be prepared to walk away!
. . . nothing gets there attention like you getting up to walk
. . . the will do everything to keep you there
. . . but, do fall for prices you don't like
. . . better to walk than pay too much

NOTE1: For leasing, do not mention a monthly payment. Plus, ask these
questions. If the dealer hems-and-haws, run like crazy. They are trying
to fool you and hide costs and profits.
. . . what is the sales price of the vehicle
. . . . . . some hide the sales price
. . . . . . some charge sticker or above
. . . what is the residual value of the car at the end of the lease
. . . . . . some cut the value to get more interest and higher profit
. . . . . . this can add THOUSANDS in profit, even on a cheap car
. . . . . . I saw a Dodge Dart residual at 1/2 after three year lease
. . . . . . I know of no new car that depreciates 50% in three years
. . . what is the interest rate
. . . . . . money costs money
. . . . . . most leasing people bury the interest rate
. . . . . . some lease interest rates are as high as 22% !

note2: CAR BUYING TIPS AND PROBLEM AVOIDANCE:
. . . Car Dealer Traps: Car and Driver Magazine Tips
. . . Car Dealer Tactics: BankRate.Com Hints
. . . Car Dealer Tricks: Car Dealer Tricks
. . . Car Dealer Tricks: Car Buying How-To

I would add, get the Consumer Reports wholesale price report. It will tell you dealer cost and what holdback the dealer gets when they actually sell the car, plus any special incentives the dealer will get. Yes, a dealer can sell a car below dealer invoice and still make money. There may be a $500 holdback they get from the automaker when they sell the car, and there could be another $500 incentive if the dealer sells a certain number cars that month.

I would disagree with number 2. I don't even tell them IF I have a trade until I have a price on the new car. Then I negotiate price on the trade, by that time they have time tied up in the deal, and they aren't going to let me walk out over a couple hundred dollars on the trade.
And, and only after those numbers are fixed, do I discuss financing. Last 2 cars, the dealer had far better financing than I could get on my own.

 

[christineann]

Find a dealer who sells vehicles at factory invoice plus a certain amount (for example, invoice + $89). Pay no admin fees and no dealer installed options. If that dealer won't show you the factory invoice (which shows his cost, not the MSRP) or won't do that kind of deal, go elsewhere. There are dealers out there who will.

 

[letsgoreds]

We used the edmunds forums to determine what would be a fair price.

http://townhall-talk.edmunds.com/direct/view/.eea7241

We emailed/faxed all area Honda dealerships early in the week, last week of the month (asking for fleet salesman if they had one). In the letter we shared exactly what we were looking for (model level, color, etc.), that we were purchasing it on the following Saturday and asked that they submit their best offer no later than Thursday, and that no follow-up offers will be accepted. It was fun when the offers started coming in!

Saved us THOUSANDS (purchased Odyssey). I have several friends who have done the same thing with similar success. No haggling, just set up a time on that Satruday to fill out the paperwork, bringing in the best offer you received. Done!

 

[Evansvillegirl26]

The last 2 cars I bought I found online. I corresponded with a salesman via email and made an offer. After they a accepted then I went and test drove. I just bought a 2012 jeep wrangler and offered then $3000 less then what they were asking and they accepted. You also have to find the right salesman too. I made offers on other jeeps and some salesman wold not really budge. I read reviews on cars.com on different dealers. I went 40 miles out of my way to get mine. And it was sooooo worth it! Our salesman was wonderful. Good luck. Sorry about the accident.

 

[JandJ]

So sorry about your accident and I hope no one was hurt!

I've purchased three new cars and the best deals I got were at a "no haggle" Honda dealer and an internet deal. You would be lucky to find a "no haggle" dealer - the price is the price and that's that (and it was cheap!). We bought a Toyota through a local dealer's website. We saved thousands buying on-line. We test drove the car before purchase and did have an on-site salesman who was just there to facilitate the transaction. With the internet pricing there was no "dealer fee" either. We went to several dealers but the internet pricing was the best. I thought it would make a difference that we were paying cash, that we might save even more, but it didn't matter.

We are Costco and AAA members and considered going through their car buying process, but when we found the internet deal it couldn't be beat. We found out after we bought the Toyota that the Costco pricing is not any better. In fact, our salesman told us some dealerships will artificially inflate a price when you have a Costco "deal" and you're not paying any less than if you'd just come in off the street. We didn't go through Costco or AAA so I have no personal experience with it at all, and I'm sure some people have gotten good deals. I'm just repeating what our salesman told us.

 

[msmayor]

I never negotiate on just the price of the car. I negotiate an "out the door" price that includes everything. Its the easiest way to avoid all the hassle over fees, etc.

If you know what your bottom line price is, then you shouldn't care how they get there. They can call stuff on the contract whatever they want, it doesn't matter to me. As long as I know that I am paying not one penny more than the out-the-door price I want (includes all taxes too!) I know I got the deal I wanted.

I get my car price by doing the research on line, add what is reasonable for documentation fees and then sales tax. That's what I am willing to pay.

Its the only way I have ever negotiated a sale.

 

[ssawka]

OP, you have already gotten great advice from PPs, but here are just a few tips I'd like to add. I apologize if I am repeating any previous advice.

• Since your car was totaled, you probably do not have a trade in, but if you do and have a Car Max near you, go there first. They will inspect your trade in and give you an offer which is good for 7 days.
  
• Before you go, get pricing from buying services and Internet sales departments. AAA buying service works better than the others because you do not need to contact the dealer directly to get an offer and you'll know which offer is from which dealer. When you go to the showroom, do not tell them that you have an online offer. See what their onsite offer is first. Sometimes it is a better offer than the online offer. If you really like the car, make them at least match the online offer.
  
• Do not let them play the "incentives game". Incentives (rebates, financing, etc.) are offered to you by the manufacturer and should have no bearing on the price that the dealer is offering for the car. If the dealer does not agree, start to head for the door.
  
• I know this has been said by a PP, but it bears repeating. Negotiate on the "out the door price" and not the price of the vehicle.

 

[LovesTimone]

Wait till the end of the month, you can get a better price, due to quota's that the dealership commits to. Also try to get extended warranty included in the deal this will save you later on, also the 2014 should start showing up in the next few weeks, so look for a 2013, still new just not at the higher cost.

Really look at your budget, know what you can afford, payment wise and with more insurance add in for a new car. DO NOT tell them what you can afford. Wait for them to make the offer then start the dealing.

Do not use words "I love this car" or WOW great car. Do your research ahead of time.


Be prepared to walk away. I mean get up and leave the dealership, We did this and before we got home they were willing to deal, we waited for a day or so and then called back, it was the last day of the month, and we got everything we wanted and then some, extended warranty, and extra year of oil changes for free.

 

[bedogged]

Are you a Costco member? If so, go and get your best price from a dealership on the model you want. Then go to the Costco website and put the information in. A fleet manager will call you with a quote. We saved several thousand dollars last year on our model and it was the best, most painless buying experience we have ever had.

 

[ssawka]

...also the 2014 should start showing up in the next few weeks, so look for a 2013, still new just not at the higher cost.

Wether or not buying a previous year's model is a sound financial decision completely depends on how long you intend to keep the car. If you plan to "run it into the ground" then yes, a previous year's model will save you money. If however you think you will ever trade in the car or sell it, then buying a previous year's model may not make sense. You will lose money when you trade in or sell because of the rate of depreciation. Check the blue book now for the car you are considering and then see what the difference is between two consecutive years.

 

[mikehn]

You can search every single dealership's inventory online and print out window stickers on each and every vehicle. No need to spend days driving around from dealer to dealer. Pick out 3 or 4 vehicles that you would be happy with, then haggle away until you get one of them. Every dealership has a 'no haggle' price they want you to pay. Do not fall for the 'no haggle' price. Do your research and stick to it. Pressure is the salesman's best tactic. Remove the pressure and you are on the same playing field. The fact that you can do everything from the comfort of your home or office makes haggling in the 21st century so much easier.

 

[Kathi OD]

Be prepared to walk away. I mean get up and leave the dealership, We did this and before we got home they were willing to deal, we waited for a day or so and then called back, it was the last day of the month, and we got everything we wanted and then some, extended warranty, and extra year of oil changes for free.

Lots of good advice here...but THIS! No car dealer wants a serious buyer to leave their showroom without purchasing a new car. DH and I bought our last cars about a year ago, 2 of them, on the same night. We knew what we wanted and what our "out the door" price was. After an hour or so of games, DH told them to give us our keys back, and I added that they should call us when they were willing to sell us the car at our price (we were really only hung up on one of the vehicles, but we made it clear that both cars were necessary for the deal). It took about an hour for the sales manager to call us and tell us we had a deal.

 

[Hrhpd]

We used the edmunds forums to determine what would be a fair price.

http://townhall-talk.edmunds.com/direct/view/.eea7241

We emailed/faxed all area Honda dealerships early in the week, last week of the month (asking for fleet salesman if they had one). In the letter we shared exactly what we were looking for (model level, color, etc.), that we were purchasing it on the following Saturday and asked that they submit their best offer no later than Thursday, and that no follow-up offers will be accepted. It was fun when the offers started coming in!

Saved us THOUSANDS (purchased Odyssey). I have several friends who have done the same thing with similar success. No haggling, just set up a time on that Satruday to fill out the paperwork, bringing in the best offer you received. Done!

I want to thank you for this post. (and others on this thread) I was in the process of buying a car and didn't like the numbers I was seeing at the dealers.

I went into Consumer Reports and purchased for $14.00 the car report for the model I wanted. Best $14.00 I ever spent.

I was dealing on a brand new, just released 2014 at the beginning of the month, not the best scenario. Consumer Reports said that the dealers' willingness to deal was low for this model and year.

So, what the heck. I figured out a price I wanted out the door. I did exactly what was suggested above. I blasted e-mails to every dealer in a 75 mile radius saying I was going to purchase this week, here is what I wanted to pay and I would buy from the first dealer that met or beat my price.

I was surprised that 2 of approximately 15 dealers accepted my offer. I chose the dealer that was about 30 minutes away and had the color I preferred.

I got the car for the Consumer Reports Bottom Line price, which was $2000 under invoice and $2,500 lower than what Tru Car said I should pay. I even negotiated away the dealer handling charges.


So, thanks!!! Bought it on Tuesday. I did all the correspondence via e-mail (I had already test driven and knew exactly what I wanted) and then just showed up to sign the paperwork.

I was even able to upgrade the model and still stay within my budget.

I probably ought to read the Budget board more often!

 

[Judyat]

Lots of great points made. We bought a new Honda ex in May using many of these points. We did our homework on Edmunds. Then got the Costco out the door price which was good and then checked truecar and got an even better price which the dealer matched. Didn't really have to haggle. The total price was better than the invoice price and also better than the fair price on Edmunds. We also paid cash which was not a problem and wrote out a check. We got the car before the check cleared which was also great.