Why aren't Car dealers prepared to deal?

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shokwaverider
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Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 10:05 am

I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?

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cflannagan
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Re: Why aren't Car dealers prepared to deal?

Post by cflannagan » Mon Aug 12, 2013 10:11 am

shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
I'm not well-educated on how car dealerships work; this is just a big assumption on my part, but I wonder if interest from car loan goes to car dealership; thus they'd prefer buyer to buy car through car loan, making them more money than a cash purchase would?

Wolkenspiel
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Re: Why aren't Car dealers prepared to deal?

Post by Wolkenspiel » Mon Aug 12, 2013 10:12 am

shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
That seems odd. Even truecar.com has at least a 5% discount for the 2013 model (4% for 2014), in the Boston area:
http://www.truecar.com/prices-new/jeep/ ... r-pricing/
This usually means that an even bigger discount could be negotiated in person (or by email).

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Re: Why aren't Car dealers prepared to deal?

Post by chipmonk » Mon Aug 12, 2013 10:15 am

shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
You have to know how to get them to deal :) I followed the advice on CarBuyingTips.com and it was immensely helpful: http://www.carbuyingtips.com/carintro.html

Basically, go test the car, talk to the salesmen, and refuse to discuss price or pin down your interest. Then show up the next day, tell them you want the car at price $X, and refuse to budge a penny. Also, refuse to discuss how you're going to pay for it until after you've agreed on the price, because as you said dealers prefer to finance themselves because they get huge kickbacks on the loan.

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 10:27 am

[quote="chipmonkYou have to know how to get them to deal :) I followed the advice on CarBuyingTips.com and it was immensely helpful: http://www.carbuyingtips.com/carintro.html

Basically, go test the car, talk to the salesmen, and refuse to discuss price or pin down your interest. Then show up the next day, tell them you want the car at price $X, and refuse to budge a penny. Also, refuse to discuss how you're going to pay for it until after you've agreed on the price, because as you said dealers prefer to finance themselves because they get huge kickbacks on the loan.[/quote]

I did that still no go. I emailed called the General Manager (not the sales person) and they are not discounting them at all. I cannot buy a car without a deal. so I will wait as it would be a fun car for the beach.

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Groundhog
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Re: Why aren't Car dealers prepared to deal?

Post by Groundhog » Mon Aug 12, 2013 10:34 am

Buy a Subaru using the VIP program http://www.bogleheads.org/forum/viewtop ... st=1774724 :D

georgewall42
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Re: Why aren't Car dealers prepared to deal?

Post by georgewall42 » Mon Aug 12, 2013 10:36 am

Sometimes this happens with popular car models, where demand is essentially outstripping supply so the dealer has no incentive to offer a discount. These situations can be seasonable (you mentioned fun car for the beach, and this is August) and/or specific to your local area.

The techniques mentioned upthread are all good. Another idea is to go a dealer's lot and note a car that is sitting in their lot. Go back a week later and see if it's still there. If so, ask him if $X will take it off the lot. Don't ask for a discount outright; just say you're willing to pay a certain amount, and see what happens. Dealers don't like to keep cars on the lot all that long, and you may just get lucky.

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cheese_breath
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Re: Why aren't Car dealers prepared to deal?

Post by cheese_breath » Mon Aug 12, 2013 10:40 am

What brand are you looking at? Some brands instituted a 'one price' policy a few years ago. I don't know if they have backed off this since then.

Being a cash buyer doesn't earn you any points unless your credit is so bad you can't get a loan. The dealers make money off every car loan they sell.
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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 10:41 am

shokwaverider wrote:[quote="chipmonkYou have to know how to get them to deal :) I followed the advice on CarBuyingTips.com and it was immensely helpful: http://www.carbuyingtips.com/carintro.html
This is a GREAT site, Thanks.

georgewall42
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Re: Why aren't Car dealers prepared to deal?

Post by georgewall42 » Mon Aug 12, 2013 10:42 am

cflannagan wrote:
shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
I'm not well-educated on how car dealerships work; this is just a big assumption on my part, but I wonder if interest from car loan goes to car dealership; thus they'd prefer buyer to buy car through car loan, making them more money than a cash purchase would?
Dealers get incentives for promoting financing from their preferred vendors; those incentives are essentially pure profit to the dealership. However, once the car is sold, the dealer has no further part in the loan servicing; it then becomes the financing company's problem. Which is why it's a great deal for the dealer.

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Re: Why aren't Car dealers prepared to deal?

Post by dpc » Mon Aug 12, 2013 10:54 am

The dealership (actually, the sales manager) does this for a living. Certain types of cars are not typically discounted due to local supply/demand. This will vary depending on your location, time of year, time of the month, etc.

They are betting that they can sell the car at a higher price to someone else within a reasonably short period of time. At times, very popular models have sold for more than the sticker price.

Patience is a virtue in many cases. Often the salesperson will call you back in a few days to make the deal. Being willing to walk out is your best negotiating tactic.
"Worrying is like paying interest on a debt that you might never owe" -- Will Rogers

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Re: Why aren't Car dealers prepared to deal?

Post by allenneal99 » Mon Aug 12, 2013 10:57 am

It may be too early in the month, they are not hungry enough yet. You may want to try again toward the end of the month or near the end of the quarter. Car sales people are creatures of habit and highly competitive.

You also state you called to negotiate. It may be more advantageous to physically go there to discuss pricing. Walking away via a phone call is just not as dramatic as walking away in person. I would suggest to schedule an appointment early on a weekday.

I would imagine buying any car now (2013) is much different than when I purchased a car in the summer of 2009. Car dealerships were literally giving cars away then. There seem to be record car sales now, I believe.

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desertbandit442
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Re: Why aren't Car dealers prepared to deal?

Post by desertbandit442 » Mon Aug 12, 2013 11:13 am

I've done the dealership loan before--they seem more interested in dealing with you when you tell them OK on the dealer financing. Then when the first payment is due, I just pay it off in full. :wink:

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Re: Why aren't Car dealers prepared to deal?

Post by chipmonk » Mon Aug 12, 2013 11:17 am

georgewall42 wrote:The techniques mentioned upthread are all good. Another idea is to go a dealer's lot and note a car that is sitting in their lot. Go back a week later and see if it's still there. If so, ask him if $X will take it off the lot. Don't ask for a discount outright; just say you're willing to pay a certain amount, and see what happens. Dealers don't like to keep cars on the lot all that long, and you may just get lucky.
Big +1 on this.

When I bought my car, I said to the salesman: "Look, you have two manual transmission 2010 Mazda3 hatchbacks on your lot. It's October now, and none of the other dealers in the area have more than one of them on your lot. I'm betting you want to get that car off your lot." He just nodded. Thanks to online inventory lists, I didn't even have to go to any of the other dealers to see what they had in stock :D

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 11:31 am

I think it is a combination of Beachers like Jeeps and they are not hurting yet. End of quarter and Month may be the way.

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Re: Why aren't Car dealers prepared to deal?

Post by tweeter » Mon Aug 12, 2013 11:33 am

You should email around 6 (maybe more) dealers in your vicinity with your exact specs and tell them you are motivated to buy in the next several days. Stress in the email that you need their lowest out the door price and you will be going with the dealer that will give you the lowest price. Tell them you will negotiate only by email (give them a google voice number if they require a phone number on their email contact forms). Ignore any "call me" responses. You need them to make a commitment for OTD pricing in the email. Some will BS with you, others that are motivated with give you pricing in the email. You can then pit them against each other or just take the lowest quote. Do not use TrueCar. The dealer has to pay them $500 for the service. Use it as a bargaining tool and you will get significantly better pricing than it will ever give you.

The dealer that you test drove at knows that you want this car and basically "has you on a hook" and they are not going to discount it. You are dealing with a salesman and he needs his cut. However, they might be willing to do a dealer trade with another dealer who is closer to a sales target or maybe they would get a better car in the trade. You just don't know about this until you contact other dealers and let them deal with each other. But be careful about contacting too many dealers if there is only one car with your specs available. The dealer with the car may want to keep it if they think someone wants it real badly (and they know it's you).

I was able to do get a great deal on a very popular 2013 RAV4 Limited (only 2 in my state with my specs) when it first came out. I purchased in the lowest percentile, according to truecar.

Good luck.

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 11:57 am

I do not need to test drive the car. I have a friend that has one and have driven it many times.

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Re: Why aren't Car dealers prepared to deal?

Post by chipmonk » Mon Aug 12, 2013 12:06 pm

shokwaverider wrote:I do not need to test drive the car. I have a friend that has one and have driven it many times.
Personally, I would not buy a car without having test-driven that exact car. You may not feel the need to, but it may be helpful to do so anyway.

They are resisting price negotiation (it's a hassle for them too, and they don't want to advertise a discounted price to just anyone who calls on the phone). It will help to convince them that you really want to buy the car, are prepared to buy it from them, and that the price negotiation is the only thing preventing them from closing the sale.

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dm200
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Re: Why aren't Car dealers prepared to deal?

Post by dm200 » Mon Aug 12, 2013 12:13 pm

I agree that it is a good idea to "defer" any discussion about financing (or paying cash) until the deal is finalized.

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Best time to buy a car

Post by davebarnes » Mon Aug 12, 2013 12:43 pm

Wait until the last business day of the month.
Wait until the last 2 hours of the business day.
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lws6772
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Re: Why aren't Car dealers prepared to deal?

Post by lws6772 » Mon Aug 12, 2013 12:47 pm

shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
I had a car dealer tell me one time that he didn't have to sell to me because there were plenty of "uninformed buyers" that he could sell to. :shock:
Rule 1. Never lose money. Rule 2. Never forget Rule 1.

MoonOrb
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Re: Why aren't Car dealers prepared to deal?

Post by MoonOrb » Mon Aug 12, 2013 1:17 pm

It's probably because you called them without visiting the lot. I'd be surprised if you got the same reaction if you visited the lot in person.

likegarden
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Re: Why aren't Car dealers prepared to deal?

Post by likegarden » Mon Aug 12, 2013 1:19 pm

I spent more than a weekend looking for a car. For us it took several weeks to sit in cars, drive them and really see what we wanted. I also read threads here how to do it and compared at Edmunds all the features and prices. Then a week before the end of the quarter I Emailed to all internet managers of dealerships of our desired brand and asked for their best out-the door price which then was below invoice price. We bought a new Toyota Camry LE. Don't buy any extra insurance, etc. at the dealer. You should get a good price when you also buy a lease. Even when you get a loan from a bank before you go to the dealer, dealers seem to have a way to get a kickback from the bank. We were disadvantaged because we sold the old car ourselves, paid from own savings, so only gave them the new-car business.

"Fighting Chance" is a good resource.
Here is another Boglehead thread :
http://www.bogleheads.org/forum/viewtop ... st=1548747

I actually had an offer from a dealer in a big metropolitan area which was 6 hours driving away for $1,000 less that the price I got locally.

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Re: Why aren't Car dealers prepared to deal?

Post by xyz12 » Mon Aug 12, 2013 1:21 pm

shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
I've been a lifelong Jeep driver :)

It's all about your approach and how you play the game. Keep in mind that Wranglers are in high demand and dealers are not incented to give out discounts. Also, be aware that paying cash removes the profit most dealerships make from financing. You'll generally have better luck with dealerships that do higher volumes of sales, as they rely more on the bonuses associated from tiered volume sales targets as opposed to markup per vehicle.

There's several forums dedicated to Jeeps / Wranglers on the internet that are frequented by dealers that are true enthusiasts. I'm not sure if I should post them here or whether it's against forum rules, but you can google for it. There's a few fairly large ones. If you're anywhere near the midwest, "Pat" @ Fields Chrysler Northbrook,IL has a standing offer across many of the forums for 1% below dealer invoice (plus cash back incentives that you qualify for at the time of purchase) - no haggle.

Also, check out something called the "Tread Lightly Program". It's an organization that promotes taking care of the earth and not off-roading irresponsibly. Membership costs $60 for a 3 years and has a perk of 1% below invoice (called an "affiliate number"). Not all dealers will honor it, but a good majority will. Call and find out at the ones in your area. Easiest way to eliminate the haggling on a Jeep.

Good luck!
Last edited by xyz12 on Mon Aug 12, 2013 2:40 pm, edited 1 time in total.

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Re: Why aren't Car dealers prepared to deal?

Post by scrabbler1 » Mon Aug 12, 2013 1:31 pm

chipmonk wrote:
georgewall42 wrote:The techniques mentioned upthread are all good. Another idea is to go a dealer's lot and note a car that is sitting in their lot. Go back a week later and see if it's still there. If so, ask him if $X will take it off the lot. Don't ask for a discount outright; just say you're willing to pay a certain amount, and see what happens. Dealers don't like to keep cars on the lot all that long, and you may just get lucky.
Big +1 on this.

When I bought my car, I said to the salesman: "Look, you have two manual transmission 2010 Mazda3 hatchbacks on your lot. It's October now, and none of the other dealers in the area have more than one of them on your lot. I'm betting you want to get that car off your lot." He just nodded. Thanks to online inventory lists, I didn't even have to go to any of the other dealers to see what they had in stock :D
I was able to get my price on a car after seeing in the dealer's online inventory list that it had not left the lot in over a week. The dealer was eager to sell it, not only because it had been there for a while and was a basic, no-frills model but the dealership was about to be sold to a big conglomerate (yes, that weird tale, unbeknownst to me, was true) and they wanted to sell as much of the current inventory as possible. I did not want to venture to other dealers further away because this was in the middle of the winter and we had just had a snowstorm. I had postponed an appointment because I was uneasy taking a test drive on some roads which were not well plowed. Adverse weather, I had already learned, also works in a buyer's favor because fewer customers venture out to buy new cars.

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Re: Best time to buy a car

Post by dewey » Mon Aug 12, 2013 1:37 pm

davebarnes wrote:Wait until the last business day of the month.
Wait until the last 2 hours of the business day.
Agreed. I don't know if it's true (haven't tested it) but, supposedly there are often deals to be had on the last day or two of the month if a sales person is trying to meet a monthly sales quota.
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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 1:39 pm

[quote="scrabbler1 I did not want to venture to other dealers further away because this was in the middle of the winter and we had just had a snowstorm. I had postponed an appointment because I was uneasy taking a test drive on some roads which were not well plowed. Adverse weather, I had already learned, also works in a buyer's favor because fewer customers venture out to buy new cars.[/quote]

Tough to play the weather card in FLA. :)

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Re: Why aren't Car dealers prepared to deal?

Post by Peter Foley » Mon Aug 12, 2013 2:08 pm

I asked one business manager at a car dealership why the practice of bargining on used cars (w/o trade) seemed to have changed. He stated that in the metro market we are in - MPLS/St. Paul - if there are a number of vehicles of a certain year, make and model available, if their internet price isn't their best price relative to what is being offered by their competition, no one walks in the door.

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Leif
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Re: Why aren't Car dealers prepared to deal?

Post by Leif » Mon Aug 12, 2013 2:17 pm

shokwaverider wrote:
I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.
I've been looking at a lease as well. I'm no expert, but 5% does not seems to be bad. If the MF is 0.00200 x 24 is 4.8%. That is the best I've seen for tier 1 credit. However, not unusually to see 0.0025 (6%) or 0.00299 (7.2%) on tier 1. Depends on if they are earning money on the loan. The dealer that quoted me 0.00200 claims that they are not making any money on that lease.
Last edited by Leif on Mon Aug 12, 2013 2:28 pm, edited 1 time in total.
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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 2:22 pm

Leif Eriksen wrote:
shokwaverider wrote:
I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.
I've been looking at a lease as well. I'm no expert, but 5% does not seems to be bad. If the MF is 0.00200 x 24 month is 4.8%. That is the best I've seen for tier 1 credit. However, not unusually to see 0.0025 x 24 (6%) or 0.00299 (7.2%) on tier 1. Depends on if they are earning money on the loan. The dealer that quoted me 0.00200 claims that they are not making any money on that lease.
Dealers will "claim" anything to get your business. When Money is available for buying cars is 1.35% average (here anyway) 4.8 is daylight robbery.

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Re: Why aren't Car dealers prepared to deal?

Post by BrandonBogle » Mon Aug 12, 2013 2:34 pm

shokwaverider wrote:
scrabbler1 wrote: I did not want to venture to other dealers further away because this was in the middle of the winter and we had just had a snowstorm. I had postponed an appointment because I was uneasy taking a test drive on some roads which were not well plowed. Adverse weather, I had already learned, also works in a buyer's favor because fewer customers venture out to buy new cars.
Tough to play the weather card in FLA. :)
Walk into the dealership before the evacuation order when the hurricane is just off the coast! LOL :)
Last edited by BrandonBogle on Mon Aug 12, 2013 2:43 pm, edited 1 time in total.

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Re: Why aren't Car dealers prepared to deal?

Post by harrychan » Mon Aug 12, 2013 2:41 pm

Emailing them and telling them to give you a discount will not work. You need to play their game, go back and forth, then start claiming that they don't have the EXACT model you or your spouse demands and are willing to compromise on something they have in stock. As others have stated, they want you to finance. I was reading an article that Ford makes more money of financing than the cars that they sell. So stating up front you want to buy through cash is a turn off to their bottom line. Just negotiate for out the door price then surprise then at the end by saying you want to pay cash. They won't be able to back out then.
This is not legal or certified financial advice but you know that already.

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Re: Why aren't Car dealers prepared to deal?

Post by MindBogler » Mon Aug 12, 2013 3:20 pm

harrychan wrote:Emailing them and telling them to give you a discount will not work. You need to play their game, go back and forth, then start claiming that they don't have the EXACT model you or your spouse demands and are willing to compromise on something they have in stock. As others have stated, they want you to finance. I was reading an article that Ford makes more money of financing than the cars that they sell. So stating up front you want to buy through cash is a turn off to their bottom line. Just negotiate for out the door price then surprise then at the end by saying you want to pay cash. They won't be able to back out then.
Use Edmunds.com or other site to determine invoice and average sales price in your area. Every dealership I've ever seen that advertises a low "one" or "no haggle" price doesn't have competitive prices. I think the idea of a benevolent car dealership is kind of a unicorn; they might exist but I haven't found one yet. Anyway, the best way to score a deal is to email the internet sales department and name your price based on the invoice from earlier. Sometimes they'll accept, sometimes they won't. Wait until the end of the month, you're more likely to get a sale if the dealership has had a bad month or is close to hitting a sales target. Manufacturers give bonuses to dealerships which they call "hold back" if they meet certain criteria. Basically the manufacturer is splitting the wholesale profit w/ the dealership. Sometimes you can get a car below invoice just by buying at the right time.

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 3:44 pm

I have an interesting twist on the "Never Shop Based Upon the Monthly Payment" argument. Here me out. Let us say we have agreed on a price for a car that has a MSRP of $29,650, the agreed price is say... $25,650 this is just over 13% discount of MSRP which according to some sites is a GREAT deal. so you now tell the sales staff you want a 24 month lease at 10k per year. These numbers FYI are where I want to start with a deal for my target car.

You get a readily available lease calculator (I use one in Excel & another on Android) and do the math.

MSRP: $29,650
CAP Cost: $25,640
Residual: $20,458 (This is 69% that is the number I found on the Web in more places than one, dealers will undercut you on this, I have previous experience with it)
Money Factor: 2.0% or .00082. I chose this as the Bank loans for new cars in my area are 1.35%, I assume they want to make some money so I gave them 2.0% to start (you can really get shafted here).
Lease Months: 24
sales Tax: 6%
Down Payment: NADA, $0, Zero, Naught.

The results are: ~$269 per month.

So if you say to start you want a lease for $269pm you know it will be a good deal. So I do not really care how they get there as long as they get there. I pay the whole lease out in one go so I usually get a month or 2 off also. I usually ask for this.

Am I missing something here?

tweeter
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Re: Why aren't Car dealers prepared to deal?

Post by tweeter » Mon Aug 12, 2013 3:47 pm

MindBogler wrote:Wait until the end of the month, you're more likely to get a sale if the dealership has had a bad month or is close to hitting a sales target. Manufacturers give bonuses to dealerships which they call "hold back" if they meet certain criteria. Basically the manufacturer is splitting the wholesale profit w/ the dealership. Sometimes you can get a car below invoice just by buying at the right time.
This is good advice. However, the end of the month thing is not always a given on getting a good deal. Manufacturer to dealer bonuses are often given based on certain quantity benchmarks in a longer time period than just a month (i.e. 6 months). For example, you sell 10 of these you get X bonus at the 10th sale. Then when you hit the 25 mark you get X bonus at the 25th sale. A dealer close to one of these targets (regardless of the time of the month) will take a loss on a vehicle because they want to hit that milestone. The loss on the 25th vehicle is overshadowed by the significant gain of the bonus. That’s why it is so important to involve multiple dealers, because you simply do not know which dealer is hungriest.

Also, don’t know if it has been mentioned here, but dealers don’t pay invoice for vehicles. The general public seems to think that, though. You will often hear salesmen say “We can’t make a profit if we go below invoice.” BS.

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 3:58 pm

It seems so sad that they have to outright lie to sell cars to the masses. It would be a lot easier if there was not a game and hoops to contend with. They may even sell more cars.

fareastwarriors
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Re: Why aren't Car dealers prepared to deal?

Post by fareastwarriors » Mon Aug 12, 2013 4:29 pm

lws6772 wrote:
shokwaverider wrote:I spent this weekend looking for a new car (on the Web). I called a few dealers and NONE would give me a discount. I told them I was a cash buyer and would pick up the car that afternoon for the right deal. One dealer had the exact car I wanted on the lot. Jeep wrangler.

I walked because they would not give me any deal at all and wanted 5% MF on a 24 month Lease.

What gives? Is this a summer thing or what?
I had a car dealer tell me one time that he didn't have to sell to me because there were plenty of "uninformed buyers" that he could sell to. :shock:

At least he's being honest...

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wilpat
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Re: Why aren't Car dealers prepared to deal?

Post by wilpat » Mon Aug 12, 2013 4:42 pm

harrychan wrote:Emailing them and telling them to give you a discount will not work. You need to play their game, go back and forth, then start claiming that they don't have the EXACT model you or your spouse demands and are willing to compromise on something they have in stock. As others have stated, they want you to finance. I was reading an article that Ford makes more money of financing than the cars that they sell. So stating up front you want to buy through cash is a turn off to their bottom line. Just negotiate for out the door price then surprise then at the end by saying you want to pay cash. They won't be able to back out then.
I bought a new Hyundai Santa Fe a couple of years ago and they gave me the best price if I would finance it through Hyundai Finance. I did , but I paid the loan off completely with the first payment and ended up paying no interest at all!
Contrary to the belief of many, profit is not a four letter word!

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Mon Aug 12, 2013 5:00 pm

[quote="wilpatI bought a new Hyundai Santa Fe a couple of years ago and they gave me the best price if I would finance it through Hyundai Finance. I did , but I paid the loan off completely with the first payment and ended up paying no interest at all![/quote]

This is OK for buying. But I like to lease a new car for 24 months to try it out. Typically if you get a good deal it costs about the same as buying it (From a Depreciation perspective). But as for your comment, check the fine print, the last time I bought a car on time you had to wait 12 months to pay it off in full.

Leasing is good during low interest times like now.

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Clearly_Irrational
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Re: Why aren't Car dealers prepared to deal?

Post by Clearly_Irrational » Mon Aug 12, 2013 5:39 pm

I dislike face-to-face haggling so I do all of my shopping online. Once I've determined the make/model/features I solicit web quotes from all the dealerships within an hours driving distance, then I use the lowest ones to beat the others over the head. "They're offering me X, can you do better or should I just drive to their lot now?" This seems to work well for me. Dealers know that if you're an online shopper you're going to price compare so they don't usually waste much time getting to their lowest price.

investor
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Re: Why aren't Car dealers prepared to deal?

Post by investor » Mon Aug 12, 2013 6:01 pm

Perhaps SATURN had the right idea. A no haggle posted price. SATURN might have been one of the best GM Cars also. Though I swore off of GM cars after having bought a new 1971 Chevy Vega.... :mrgreen:

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Re: Why aren't Car dealers prepared to deal?

Post by Professor Emeritus » Mon Aug 12, 2013 6:50 pm

I used to buy cars for other family members. I've bargained with diamond sellers in New york, Jewelry sellers In Istanbul and everyone in Cairo
My take on it.
Know whether or not you are buying when the seller needs to sell. That takes research.

No one ever gives a discount until they see you face to face. If they are going to make a discounted offer they want to know that they will make the sale.
Makes sure that you can either buy or walk away equally happy. Never let anyone else see the bargaining. That will stiffen the price.

Never make an offer to an agent, only to a principal. Car salesmen are agents. Just ask "do you have the absolute authority to sell the car? If they cant sell the car but need to check with the manager DO NOT MAKE ANY OFFERS. The agent makes the offer. If he wants you to make anoffer ask him to come back with an approved blank contract.

Bundling can be either good or bad. Financing and service contracts are typical bundles. Bundles are used at the end to close the deal.
What you need to do is anticipate the bundle offer and preempt it. Ive closed a lot of car deals by taking the service contract at 75% of the list price.

Best compliment I ever got was in Aswan where i got a wall hanging at a price I liked after an hours hard bargaining. I was told I "Bargained like a Christian" which I was assured by all h hands was a true compliment. I later actually bargained with some Copts and it was TOUGH.

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Re: Why aren't Car dealers prepared to deal?

Post by JoeJohnson » Mon Aug 12, 2013 7:32 pm

All this talk about not being able to negotiate online is incorrect. I realize many folks here are older, but it's 2013. There is an internet sales manager at nearly every dealer! They waste little time getting to the point because they know you are an informed consumer. Make them counter against competitors' offers.

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Re: Why aren't Car dealers prepared to deal?

Post by hq38sq43 » Mon Aug 12, 2013 7:52 pm

Last March, I was so impressed by the rave reviews for the 2013 Honda Accord that I visited the local dealer I bought my 2011 Accord from. They offered a deal I couldn't accept and, essentially, refused to negotiate. Shopping on line, I found a dealer 80 miles away who invited me to visit, assuring me they'd make it worthwhile. I did, and bought for $1,400 better than the local dealer's offer. As the saying goes, it pays to shop around.

Best regards,
Harry at Bradenton

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Re: Why aren't Car dealers prepared to deal?

Post by lwfitzge » Mon Aug 12, 2013 8:00 pm

I bought a 2013 Honda Accord V6 EX-L last week from a MA dealer because he came in $1700 better than 3 others in my home state (CT). The other dealers would not deal. The dealer I went with even drove the car to my DMV and we exchanged the new car for my trade-in in the DMV parking lot. Great customer service and price.... it's pays to go to a distant dealer especially this one which was the largest (volume) Honda dealer in the New England region and in the country.

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Re: Why aren't Car dealers prepared to deal?

Post by chipmonk » Mon Aug 12, 2013 8:07 pm

hq38sq43 wrote:Last March, I was so impressed by the rave reviews for the 2013 Honda Accord that I visited the local dealer I bought my 2011 Accord from. They offered a deal I couldn't accept and, essentially, refused to negotiate. Shopping on line, I found a dealer 80 miles away who invited me to visit, assuring me they'd make it worthwhile. I did, and bought for $1,400 better than the local dealer's offer. As the saying goes, it pays to shop around.

Best regards,
Why didn't you just tell the local dealer you were going to go elsewhere and show them the offer in writing from the other dealer? If you don't convince them that they will lose actual business, they don't have any incentive to discount.

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Re: Why aren't Car dealers prepared to deal?

Post by DireWolf » Mon Aug 12, 2013 9:12 pm

We recently bought my wife's car by emailing every dealer within a 200-mile radius. We asked for their bottom-line best price and then went with the lowest bidder.

When I bought my car it was a little different. It's a high-end luxury model that has been selling like hotcakes. There were only 2 dealers within a 200-mile radius. I asked both for their best price. One offered $1k below sticker and the other would not budge from sticker. I obviously went with the best price. 2 days later the general manager of the dealership that wouldn't budge called me up. He apologized and said the salesman was a rookie and didn't understand that there is always room to negotiate, even if the car is selling like crazy.

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ClevrChico
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Re: Why aren't Car dealers prepared to deal?

Post by ClevrChico » Mon Aug 12, 2013 9:36 pm

I can't imagine a Jeep Wrangler is in that much demand that there is no room for negotiation.

Something like a new Stingray Corvette, I can understand. But, Wranglers have been around forever.

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shokwaverider
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Re: Why aren't Car dealers prepared to deal?

Post by shokwaverider » Tue Aug 13, 2013 6:32 am

ClevrChico wrote:I can't imagine a Jeep Wrangler is in that much demand that there is no room for negotiation.

Something like a new Stingray Corvette, I can understand. But, Wranglers have been around forever.
Go figure. I think for the most part, around here at least, the typical type of folk that like them and trucks as so thankful to get financing that they pay whatever the dealer asks. Basically they get taken advantage of so they can get financing. we still have the signs saying "no one turned down", and "bankruptcy OK". For me, I will look for so long and simply buy another car if all else fails. But I would like a 4x4 for the beach. we can drive on the beach here with a beach pass, and that is handy for finding the best surf fishing spots. :)

I really do not want a used one either. I have not had a used car for over 30 years.

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hand
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Re: Why aren't Car dealers prepared to deal?

Post by hand » Tue Aug 13, 2013 6:47 am

Take a look at one of the high volume dealers that has figured out the online sales game and posts their "lowest and best" offers online - Fitzmall has been mentioned a number of times on this board and appears to have decent pricing, but I have never personally used.

If you're looking for a Jeep Wrangler, I would think there would be deals to be had in snowy states in the winter.

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