paddy

Director of Business Development

Any current or former car sales reps in here?

I'm thinking of getting a new car soon and want to hear how to negotiate with you sleaze balls straight from the horses mouth. Okay I'm kidding, not ALL of you are bad. But seriously, my credit score isn't great and I need a sick new whip. Any advice for when the inevitable comes up when negotiating pricing?

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SADNES5

Politicker

down voters are marketing spies

Stop negotiating. Anchor with a ridiculous bottom line. Like 10k below MSRP. Then say tell me it's not worth that.

Do NOT get into "monthly" or weekly payment talk. ONLY talk about bottom line.

You're not negotiating with the sales person, you're negotiating with his manager/finance.

Don't say you have good/bad credit.

Don't say you have a trade in.

And again, I will stress this. DO NOT TALK PAYMENTS in $/wk $/mo. ONLY bottom line.
IMO: The dealership model is going the way of the dinosaur, out dated business model. Why can't you buy direct from a manufacturer? (A la Tesla) why do you need government mandated middle men to inflate the price.

MSRP already has a nice 7-9% markup for the dealer in it. They'll say "we don't discount etc etc" they will.

Once you've got an agreed upon bottom line, then hit them with financing, trade in etc. If there are financing fees/trade in BS that is their problem. You agreed on an out the door price.

If they try and add doc fees/recycling etc walk out, say you agreed on an out the door price.

paddy

WR Officer

Director of Business Development

This is solid insight, thank you

SADNES5

Politicker

down voters are marketing spies

They will try an 4 square you. They will do everything they can to get you to say a weekly/bi wk/monthly payment. This way they shift the focus.

Always - always - always check the math yourself before you sign. 3/4 dollars when you're in the financing stage (weekly payment) adds up. Some shitty dealers will purposely add a couple bucks on here, or round up. Example. Bottom line agreed on price $29,420.69 you've got approved for 0% financing. 5 yrs. (60 months). Bi weekly payments. $226.31 PMT.

They might round it to 230.00. you just paid them ~$1000 for a 4 dollar rounding issue.

SADNES5

Politicker

down voters are marketing spies

This is why a payment is the worse thing you can bring up. They can give you 96 months of financing to make it work. Or if you say 230 is your payment... They will just inflate the bottom line price to hit.

I get pretty steamed talking about dealerships. My partner HATES when I bring up residential Realtors and car dealerships. My two triggers.

stanrym

Valued Contributor

CEO

great advice.

poweredbycaffeine

WR Lieutenant

☕️

Not an automotive professional, but I have some insight from personal experience. An improved score is likely your best negotiation tactic when it comes to getting good deals/financing options.

Purchased Used Car A in 2015
Score = "Below Average"

Purchased New Car B in 2020
Score = "Excellent"
Payment = less than used car purchase in 2015

Rates go down, preferred pricing programs become available and negotiation is easier when you are a Tier 1 buyer.

paddy

WR Officer

Director of Business Development

Alright that's fair. What about when it comes to leasing?

poweredbycaffeine

WR Lieutenant

☕️

Same deal--your lease rate will be higher if you are not a Tier 1 customer. The numbers advertised are for "well-qualified lessees" meaning you are likely to see a higher monthly payment due to "interest" (not the same in a lease).

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paddy

Any current or former car sales reps in here?

8 comments

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