ALT-1 How to Guarantee Honest Treatment from Car Dealerships
The most common misconception when purchasing a new vehicle is that the "dealer"doesn't have room to negotiate the purchase price. The truth is "dealer's" don'tlike to negotiate. Why?, because they lose money, and money is what keeps salesmen motivated. You have to keep in mind that when you arrive at a car lot, the price'sare already marked up to compensate for a good "haggler." This is called the "Asking Price." This price is advertised simply to fish out any unwary buyer's.
Don't get sucked in to "No Hassle Pricing." This is just a feeble attempt to deter would be deal seeker's. It doesn't mean that they will not negotiate. Only, thatholding out for a better price is frowned upon. Probably because the dealership islosing money due to a slow market and needs to boost revenue.
The truth is, the margin between the "Asking Price" and the "Lowest Possible SalePrice" is surprisingly flexible. However, there are many variable's involved which determines where in between you will fall. For instance, the dealers get a plethora of rebate's and incentive's from the manufacturer for each vehicle. Very rarely they offer these rebate's to the public. These rebate's range from $500.00 to $2,500. It would be in your best interest to ask about these incentive's before you sit down with a salesman. Another factor is the salesman himself. It all comes down to...Does he want to make $2000.00 on your purchase or will he settle for $1000.00. Is he about to lose his job for not meeting the monthly sale's quota? Yes, they do have a quota! I would not recommend dealing with a dealerships top salesman. Why? because these are the guy's making the big buck's and are usually more likely to turn away a low offer. How much cash are you offering for a down payment? Which usually goes right in his pocket. The vehicle you choose is an important factor also. Is this particular model moving to slow to keep in the inventory? Is it the last one in stock? etc. Also, purchasing towards the end of the year has some advantage's.
Most people are more interested in the monthly payment, rather then the overall sale price. The problem is, the dealership has ways of working with the banks to accommodate your budget while still charging you a higher price. They actually prefer that you ask for a certain monthly payment rather than taking something off the top. Sadly, most people are under the impression that a lower payment automatically means a lower price. I would recommend negotiating the price first, then the payment. Be wary of this before you sign any contract.
When you are finally ready to sign, don't be afraid to question "sudden" additional cost's. Remember, it's their job to squeeze as much money out of you before you walk out that door. And, if you do see something that you did not initially agree to, don't sign until the issue is resolved.
The most important rule of thumb is, don't be afraid to get up and walk away. Don't settle for a price you are not happy with. You would be surprised how fast thing'scan change if you threaten to walk, especially if the salesman has spent a lot of time with you. I had one tell me that the price I wanted just wasn't possible. So,I politely excused myself, and low and behold, within minute's he came running out to the parking lot yelling, "Alright, if I get you that price, will you sign today?" I still own that vehicle. And you know what, I enjoy it more because I know I got a good deal!
