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Tuesday, April 05, 2011

5 Strategies For Dealing With Car Dealers

Do your homework before you hit the lot, and don't be afraid to walk

There are a few cardinal rules that apply to any negotiation. If you are the buyer, you will almost never get something for less than your initial offer. The first number you put on the table will become the baseline from which all subsequent offers will be judged and compared. If you set the bar too high, you leave yourself little wiggle room to cut a deal at a number you like.

When it comes to cars, adopt the attitude that you can always walk away if you can't get what you want, and go to another dealer. That ability gives you the upper hand over all car salesmen, no matter how cunning and experienced they may be. Use that power to your advantage.

Here are a few more tips that might help.

5 comments:

Anonymous said...

For those always looking to score "a deal", here's another bit of advice.
Don't call the dealership and ask for a lower price over the phone when you haven't even been here to check out the vehicle!
I work for a used car dealer and I get this type of call about once a week.
If you want to "deal" you need to do it in person!

Anonymous said...

Try to buy from a volume dealer, they can afford to give a better deal. Go across the bay to Annapolis or VA Beach. Cars are literrally thousands less there. I saved SIX THOUSAND DOLLARS by doing that.

Anonymous said...

1:04 That is just a HUGE pile of crap. I have been in the Automobile business for over 30 years. If you bought the same vehicle there that you were looking at here you DID NOT I repeat, DID NOT save $6,000. The vehicles cost each dealer the same amount no matter what volume of sales they have. Now that being said, there are regional incentives, however THOSE incentives are driven by the location that the vehicles are titled in.
A smaller volume dealer has a lot less expense incurred payroll, utilities, facility etc. So the profit margin remains fairly equal.

When Bob Bell sold the Chevrolet Dealership he had for a brief period in Salisbury he made the statement "You all don't know how to do business here, My other dealerships make $500 to $600 more per car across the bay !!"

Most of those dealers use an Addendum Sticker. I goes right beside the factory sticker and STRONGLY resembles the factory sticker, That is where Added Profit Items are placed. For Instance : body side moldings, sunroof, pinstriping and so forth. These are high profit items and give the dealer more wiggle room. The factory MSRP may be $18,000, but by the time the "Added Value" sticker is done the new selling price is usually thousands more !!!The actual profit margin (not counting rebates)from the factory is likely 9-10 % BUT the margin on the bump sticker is considerably more 200, 300 400 % !!

Also for those of you shopping in Virginia (as 1:04 suggests) Be VERY careful of Documentation Fees (DOC FEE) they can run $400 - $500 and are usually hidden (thumbed) while you are signing the papers in the finance office. Those fees are charged "to handle your documents" titling, etc. Maryland regulates that fee to no more than $25 I believe
I'd suggest anyone who is interested in a new vehicle go to Edmunds.com, they will give you the cost on each vehicle plus any dealer or customer rebates out there. Then find a local dealer with good service and perks like loaners etc.

Bob Thomas said...

No, 1:04p has it right. I used to sell cars myself, and I know that dealers on the western shore offer better deals and less hassle. 2:42p is just trying to perpetuate the vicious cycle of bad deals and bad service on the shore(except at Pohanka).

Anonymous said...

lol 242 prob hasn't left the shore in 30 years