Haggling Tricks!?

[Hoodzy]

Hey guys.. I have never purchased a car from a dealership before and was wondering if anyone had any tips or tricks in negotiating a lower price. Is there a usual amount that the salesmen will usually be able to knock off? Also what is up with this admin/documentation fee?? Should they not cover this.. it's like them charging me to buy a car from them.

One point I'd like to point out is that I am looking for an 08/09 Gt hatchback standard and these things are bloody rare. So I can't be too ballsy.

Thanks!

[Default User]

An 08/09 will be harder to find compared to say an 06/07 simply because ppl are still paying for their 09. An 07 could be coming off lease and easier to find what you're looking for.

As far as haggling, I say ask what the "out the door / on the road" price will be, and say you want 1500 off of that. They will obviously say no. Thats when you walk out the door. (But make sure they have your contact info.) If they don't call you back within a week, thy means your offer was too low, or somebody else showed interest.

From my experience, it's easier to get "extras" other than a price reduction. As for extras, I would ask for:
- New brakes all around
- Free Oil changes
- New All seasons
- Winter rim/Tire Package
- Extended Warranties

Also, make sure you get BOTH sets of keys and fobs.

[PearlM3]

All of the above, you want a mazdaspeed intake, or tints. Plus don't show to much excitement, be cool. And the biggest thing, DO NOT HAGGLE IN MONTHLY PAYMENT TERMS!!! Only deal with the actual price, they will just change financing options to change the montly payment, but you are still paying the same amount OTR. As well don't get excited by deferred payments and whatnot, those don't help. Lastly, used car sales guys have the largest margins, unlike new car sales they have lots of room to play, don't take their first, or probably even second offer, push it!

[Unoriginalusername]

Hey guys.. I have never purchased a car from a dealership before and was wondering if anyone had any tips or tricks in negotiating a lower price. Is there a usual amount that the salesmen will usually be able to knock off? Also what is up with this admin/documentation fee?? Should they not cover this.. it's like them charging me to buy a car from them.

One point I'd like to point out is that I am looking for an 08/09 Gt hatchback standard and these things are bloody rare. So I can't be too ballsy.

Thanks!

Check out canadian black book to see what the trade in ranges are for the model, features and km's. having bought and sold a vehicle recently i can vouch for its painful accuracy (if your the seller) and negotiation power if you're the buyer. A dealer friend gave me a copy of the auction books from some recent auctions and the whole sale prices after auction fees etc. were well aligned to the trade in estimator. A dealer will often try to list a car for $2,500-$4,000 above the wholesale rate but seldom need to invest that much in reconditioning/certifying the car. Our last two cars cost less than $300 to certify so unless you've got 4 new rotors, pads, tires, and alignment/balance, new clutch all new fluids, paint reconditioning and an interior detail the dealer very often has very little additional costs sunk into the vehicle. 9 times out of 10 they have a summer student or junior mechanic clean it up, look it over and slap a price tag on it.

Assuming 40,000km and no leather, sunroof or power seat... a 2008 GT HB is enclosed from the black book estimator - http://www.canadianblackbook.com/black-book-values/index/display/neworused/used/year/2008/make/Mazda/postalcode/T2P+3K7/model/Mazda3/mode/tradein/trim/Sport+GT/style/4D+Hatchback/selectedoptions/[%2205%22]/currentkilometers/40000 11,400-12,800.


The top price tier assumes
Your vehicle is near-perfect with no exterior blemishes or interior wear or odours. Mechanically, nothing would be required to sell it.

Middle
Your vehicle has exterior and interior appearances consistent with use. Minor repairs may be needed for sale.

Low
Your vehicle will need to be reconditioned cosmetically and mechanically to give it that new-to-you feeling for the next buyer.

So knowing that a dealer won't pay more than $12.8 for a car that requires absolutely nothing for them to sell, means anything above that amount is their profit margin. Unless they're desperate they're not going below $500-1,000 profit so assume if you get them down to 13.3 - 13.8 that you've gotten yourself as good of a deal as you're going to get.

A dealer has no problem showing you the black book values when you want to trade in your car so don't be afraid to use the same tool when discussing price on a used car you plan to buy from them. Print it out, take it with you, see if you can get any local auction price information, call a few other dealers and ask for a trade in value for a car with similar specs to see what the range of value's your given is and lastly don't be afraid to play some hardball. As much as a dealer will try to convince you otherwise, cars are mass made commodities for the mass market in most cases and if you miss out on one there will be more just like it somewhere else. don't buy on emotion or in a rush, walking out can be a powerful negotiation tactic if you've primed the pump up to that point properly (i.e. they know you're serious and not just kicking tires)

[klspeed3]

there are a couple good articles on the web relating to things to say/not to say, price you should start at, etc... here's one: http://artofmanliness.com/2010/06/16/how-to-negotiate-for-a-used-car/

basically, figure out the price you are willing to pay (you can use edmunds or some other such service to find out current car values, but the price must be reasonable) and then start about 1500-2000 less than that. they will decline but don't let them decline without making you a counter-offer. respond with $3-500 more than your original offer and keep going that way until they won't budge. At that point, make them a final offer that is close to (or is) the original amount you determined. If they still refuse, make the decision to walk and let them chase, or take their lowest offer. Just remember to remain confident at all times and don't be too quick to up your offer...take your time. if you can somehow mention an appointment to look at another car, that'll help too (even if there is no other car :P)

make sure you do a lot of research on similar vehicles, pricing, and especially since the car is used, look for tire wear, rust, scratches or other blemishes you can use as leverage. if you aren't sure what to look for, I recommend www.smartautocheck.com - they will fully inspect the car for you and give you a detailed report outlining the condition of the car which you can again use as leverage.

[robl]

Agreed.

Ultimately most places will not let you walk out if you're close to an agreeable number.

I personally research the crap out of the make/model/price of the car and walk in with a firm number in mind (whether it's reasonable or not), and if I don't get it, I leave and say "here's my number if you can make it happen".

As others have said here, blackbook gives you an idea as to the average pricing on the vehicles, and most dealers will get these even cheaper at the auction sales.

Good Luck!

Rob.

[Johncrx]

I used to work at a dealership, and the walk out is powerful. Show a lot of interest, but if they aren't coming down at all, just say you found one at their competitor for less. Don't go crazy low with the price, and make it so they can beat the other dealer. Like it was said before, if you are at all close to a reasonable offer, they won't let you walk out of there. Good Luck!