Help me know how to negotiate a new car

[Anonymous]

We have loved using Costco's program that has prearranged pricing. You get a decent price without worrying about going back and forth while there. Takes the stress out for me.

https://www.costco.com/auto-program-services.html

[Anonymous]

Anonymous wrote:Never mind the price. They will get you with all the made up taxes, fees, warranties, tire guards they refuse to take off that were never put on.

Then you walk out. No one tells me that I have to pay for certain fees. I'm negotiating the final price and will walk away over the add ons. Never let them wear you down.

[Anonymous]

I emailed a bunch of dealers and conduct negotiations by email. If they try to play games when I show up, I leave.

[Anonymous]

Anonymous wrote:Go to Carmax and get a quote for what they will give you for trading in your car.
the used car market is hot and dealers want your car.
make sure you know what it is worth before you walk into the dealership if you want the "ease" of trading in a car.

Do you care about price - or just don't want to be taken advantage of?
If you are about price, look for a 3 year old used with low miles (less than 30K)
Be ready to jump when you see it come on the market if it matches what you want / are flexible about.

Op would be better off selling to Carmax or Carvana and not selling to the dealer. The dealer will never give as much money and the other problem selling to them as part of the deal is they will make sure it is so confusing that you really don't know how much you are getting. Keep the transactions separate.

Used cars are still hot and a year ago people were paying almost as much as new. It used to make sense to buy a car a few years old with low mileage but is that true today?

[Anonymous]

Anonymous wrote:We have loved using Costco's program that has prearranged pricing. You get a decent price without worrying about going back and forth while there. Takes the stress out for me.

https://www.costco.com/auto-program-services.html

you can still negotiate down these prices as they are high

[Anonymous]

Anonymous wrote:OP I trade the old car in because I’m not willing to spend hours and hours trying to squeeze more out of it. But what you should do is get a Carmax offer, because they’ll probably match that or if they won’t, Carmax is easy.

Figure out the exact trims and colors and such you’ll accept, draw a circle you’re willing to drive, and call all the dealers in the circle. Just be transparent and go to the one who gives you the best price. They all know we’re doing this anyway and you’re not a plum for them because you’re paying cash. That way, hopefully, you end up only having to drive to one dealer and paying a reasonable price.

It does not take hours and hours to sell your old car. Again, do not make the sale of your old car part of the deal. Sell it to the Carmax or whomever. They make it easy.

It's a good point to mention that cash is not king anymore. No dealership is impressed with it as they make money off of the loans.

[Anonymous]

Anonymous wrote:We have loved using Costco's program that has prearranged pricing. You get a decent price without worrying about going back and forth while there. Takes the stress out for me.

https://www.costco.com/auto-program-services.html

I have never seen great prices thru Costco or UBS or any. I always check those out and discard. I've bought numerous cars recently.

The back and forth some posters are making sound onerous is really not that hard. I wouldn't give $500 to a stranger much less thousands. The money isn't real in some people's minds so they aren't realistic about what they are giving away.

[Anonymous]

Anonymous wrote:I emailed a bunch of dealers and conduct negotiations by email. If they try to play games when I show up, I leave.

+100 Throw out emotions. If any of the dealers "neg" you, don't be insecure. Walk out. There are a million car dealers around and buying from dealers far away isn't that painful.

[Anonymous]

Anonymous wrote:PP here. I think you and I are on the same team. Good points about the trade in too.

I just think there is a balance with the time spent. I used to enjoy the “game” of negotiating but the more I did it, the more I realized how valuable my time is. I’d rather limit my time spent and just cut to the end. My guess is that OPs time is valuable too. Kids plus sports plus practices equal limited time. We each have our methods but I prefer the limit my time/determine my OTD and hold fast.

Good point that time is money but I think of it as a stranger taking money from my children. If you try it, the back and forth is not that difficult. It will always save you money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:PP here. I think you and I are on the same team. Good points about the trade in too.

I just think there is a balance with the time spent. I used to enjoy the “game” of negotiating but the more I did it, the more I realized how valuable my time is. I’d rather limit my time spent and just cut to the end. My guess is that OPs time is valuable too. Kids plus sports plus practices equal limited time. We each have our methods but I prefer the limit my time/determine my OTD and hold fast.

Good point that time is money but I think of it as a stranger taking money from my children. If you try it, the back and forth is not that difficult. It will always save you money.

I think time with my children is priceless. 🙂

The back and forth is easy. Find my OTD price. Present to dealer (email or in person). If they accept, we have deal. If not, I walk.

I don’t negotiate.

The key is finding reasonable OTD price.

[Anonymous]

Fitzgerald aka FitzMall is a local no-haggle dealer. Find out their drive-away price and do not pay one cent more.

[Anonymous]

Tell them what you want to pay and walk out if they don't take it. Move on to the next place. I did this myself. It worked.

[Anonymous]

I just bought a car today. We got three quotes (had to go in and get the out the door price) and showed the dealer what the out door price was for the other vehicles. They matched the same discount for the their car.

Keep in mind many times dealers have similar cars but the trim/packages may be slightly different. So they won’t match the exact price and will match the same discount percentage/amount.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Come with your own financing.

Wrong. Dealers get a kickback on originating financing. Notice when you ask price, they'll always ask if you plan to finance it. That gives them more leeway on price since they know the kickback is coming.

Then pay off the loan in full a month later. They may call and get mad about it (they lose their kickback) but it's fully allowed in nearly all car loans. Car loans now have a clear table listing interests costs and pre-payment penalties (if any.. there shouldn't be) thanks to the CFPB rules.

My comment was going to be similar. Watched a YouTube video that said not to let the dealer know you're paying cash until you've negotiated the out-the-door price. This is because the dealer really makes more money on financing, so telling them you're paying in cash today is not the bargaining power you would think it would be.

I think this comment from above us worth repeating:
"Do not be a people pleaser during this. You're objective is to not give away money to a stranger but to get the best deal you can. You are not there to get anyone to like you."

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP I trade the old car in because I’m not willing to spend hours and hours trying to squeeze more out of it. But what you should do is get a Carmax offer, because they’ll probably match that or if they won’t, Carmax is easy.

Figure out the exact trims and colors and such you’ll accept, draw a circle you’re willing to drive, and call all the dealers in the circle. Just be transparent and go to the one who gives you the best price. They all know we’re doing this anyway and you’re not a plum for them because you’re paying cash. That way, hopefully, you end up only having to drive to one dealer and paying a reasonable price.

It does not take hours and hours to sell your old car. Again, do not make the sale of your old car part of the deal. Sell it to the Carmax or whomever. They make it easy.

It's a good point to mention that cash is not king anymore. No dealership is impressed with it as they make money off of the loans.

True. You’ll get a better deal financing and then paying it off. Just make sure there’s no prepayment penalty and don’t tell them your plan.