What are your negotiating strategies in buying a new car?

[HunkyBill]

For lower end cars, the $750 is a huge charge especially since the average percentage difference is only about 7-8% from the MSRP. Most dealers will sell you the car at about 3-5% above factory invoice if you show them the invoice report costs. In those cases, it's not advantageous to go through a broker if they charge $750 especially since he usually deals with the fleet manager any ways for like 5-10 minutes after he spends two minutes getting the invoice price from unhaggle or carcost.

Once again, which is annoying me big time is the shroud of secrecy surrounding the true cost of freight, PDI, and documentation fee. In fact, the latter is recognized as a huge money grab and the dealer is by law suppose to disclose that in the sticker price, none do: http://www.mvsabc.com/consumers/vehicle-buying-tips#salestransaction

I just found this site which is helpful for people who don't want to negotiate. They'll do it for you for the cost of their annual membership of $65
http://www.carhelpcanada.com/, another one is: http://www.apa.ca/

 

[badbadboy]

Not sure why all the hatred towards the car business people. Lets face it, when we walk into a dealership most of us want to walk out with a deal that makes the dealer lose money with negative dollars on the books. So why should they just roll over and play dead cause you're a customer. Been on both sides of the game myself.

That's the theme I am not getting at all in this thread. These people spend a lot of time learning about their product and it's strengths vs their competitors. Any sales person I have encountered in recent transactions was quite well informed. They gave me a lot more info than was supplied via their brand's website.

I just never told them I had a connection via their dealer network to get the vehicle I wanted at fleet price.

It's always a good idea to build a relationship with a dealer just in case you need an advocate if you are faced with a warranty issue and need the dealer's support. If I am the one taking a vehicle in for service I always touch base with both the sales and service managers. Countless times these people have helped me in a pinch. Simply diminishing the sales peoples worth by saying they are only out to screw you for commission dollars is not true anymore. Repeat business and referrals are how they build their businesses. All of their sales and customer satisfaction stats are closely monitored by their brands. Every interaction I have with any of the makers of my cars generates a customer satisfaction survey. If you give them a black mark, they always call me to make things right.

 

[HunkyBill]

In many cases, it is advantageous to let the salesman know straight up that you have connections or know the invoice price. That will give them some reassurance that you are not going in there to low balling them, rather youre realistic in the costs. However, the dealer will still try to gouge the hell out of you, despite the "relationship" you built with them. It is primarily for that reason, many people have such low opinions of car salesmen. Like the saying: one step forward, two steps back.

 

[badbadboy]

In many cases, it is advantageous to let the salesman know straight up that you have connections or know the invoice price. That will give them some reassurance that you are not going in there to low balling them, rather youre realistic in the costs. However, the dealer will still try to gouge the hell out of you, despite the "relationship" you built with them. It is primarily for that reason, many people have such low opinions of car salesmen. Like the saying: one step forward, two steps back.

Hence knowing your prices, options and just saying no to all the fluff they try to add on. I got a quote on a set of tires from one dealer. I told him my cost from tirerack.com and we split the difference which saved me a trip across the border and possible consequences if I didn't declare the new rubber on my car.

 

[1nitestan]

It really confounds me that people are mostly uneducated when it comes to the two biggest purchases they make - a car and/or a house

 

[badbadboy]

It really confounds me that people are mostly uneducated when it comes to the two biggest purchases they make - a car and/or a house

I agree and that is why I promote the broker method. $750 cost and several thousand dollar discount on a $50K vehicle is really the only method most people have when it comes to buying a car. Looking for a Mortgage? Same thing, had it over to a Mortgage Broker and they do all the negotiations for you. No sitting there hat in hand at the mercy of your bank. I went through a gruelling time in 2009 / 2010 when the Banking System nearly melted down. My bank at the time decided to play hard ball with me and I took the mortgage biz to a broker. Got great rates and served it up cold to my bank by moving all my accounts to a competitor. I still get calls from them asking me to bring the business back when the mortgage is up for renewal. I just laugh and say "you fucked up" haha.

 

[1nitestan]

It's always buyer beware but ... here's another reason why people hate dealerships

http://www.cbc.ca/news/canada/briti...s-duped-them-over-td-s-costly-loans-1.2489309

 

[HunkyBill]

They capitalize and take advantage of those with poor credit. What else is new?