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How to Negotiate When Buying a Car

How to Negotiate When Buying a Car


How to Negotiate when Buying a Car. A car salesperson can’t talk you out of your
hard-earned cash without your cooperation! When buying a car, take charge of the negotiation
by preparing thoroughly beforehand. You will need Loan rates Internet access Invoice
price Time and smarts. Step 1. Question your credit union about a loan before
talking to a dealer to compare rates. Find out how much cash your credit union will
approve. This helps you limit the price range of cars
you look at and test drive. Step 2. Go online to research the invoice price — the
amount the dealer pays the manufacturer — before starting negotiations. While you’re at it, check out any rebate information
and hidden incentives for the dealer. You gain the advantage by doing your homework. The minimum dealer profit is usually around
3 percent. Step 3. Don’t be fooled by the dealer’s four-square
information — a worksheet the dealer will present you with when you sit down to negotiate
that maps out purchase price, down payment, monthly payment, and trade-in value. Doing your own math prevents them from fudging
numbers. Determine the interest rate and loan term
before you arrive at the dealership to accurately project your monthly payments. Step 4. Resist negotiating based on monthly payments
alone, without contemplating the swelling interest rate or stretched loan term. Monthly payment results from the down payment,
loan term, and interest rate. Step 5. Play the game as well as they do. Be surprised that they can’t give you a better
offer, even if the terms and price are reasonable, just to see if you can move them. They want to create pressure to close you
now, but you have time that they don’t — use it. Don’t tell one dealer what another’s quote
was. You need their respect — demonstrate that
you deserve it. Step 6. Tell the salesperson you will discuss an acceptable
trade-in price for your old car, but first must have a satisfactory price on the new
car. Drive the bargain when negotiating, impressing
upon them you can sell it yourself for more than they’ll pay you. Step 7. Prepare to walk out if you are not handled
respectfully or the price is too outrageous. In fact, with some due diligence, cut to the
chase and play hardball — tell the dealer your price and expect a yes or no. Step 8. Expect an onslaught of fees and extras just
when you think you’re done. Some fees are unavoidable, but many can be
easily bargained down or avoided. Virtually all extras are unnecessary and overpriced. Throughout the negotiation process, use your
knowledge and the research you’ve done to get the best deal. Did you know Preston Tucker started a new
car company on the back of his 1948 Tucker model. This company manufactured just 51 cars before
failing in 1949.

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82 thoughts on “How to Negotiate When Buying a Car

  1. hey Youtube,,, just as with the TV,,, CLICK goes the Mute button during your advertizments…. No one cares

  2. Na, CASH is KING, save about 80 – 90% of the listing price you see on the dealership's website and say you can go high as 60% so when you make deal you'll be about 70 – 80%. Example say you want a car that has a listing price of $24,000 you'll save $19,200 – $21,600. You say "I want this car for $14,400." They'll say yea right and they'll say "$23,000" and you and the dealer will negotiate until it is about $18,000 and then you can take the deal because that is at 75% of the listing price.

  3. This would only work if you are buying this years model in the last two months of the year and be willing to walk away.

  4. at the end of the day……… you can buy a car just like that one in another dealership or even from another salesperson in the SAME dealership………or fucking dealing with sales people and call the fleet manager

  5. Its funny to see the salsepersons on here commenting oh just go with the flow, when most of them wont be working there in a year. They get brought in to sell cars to their family and friends them booted when car buying season is over. hilarity

  6. Decide how much you are willing to spend total..Check with your local bank or credit union for your current rate…Reserch what you intend to buy…Reserch your trade in value if you are trading in a car…Be honest with your sales person and NEVER buy at that time Leave and come back later that day or better the next day…Call before you come back and make an appointment,this and asking for promotions on rates such as zero percent will save you LOTS of money,and have fun with it,Bob..

  7. Ideally get a loan before you go into the dealership, if you have cash "in your pocket" then you have a lot more buying power. Also, time your purchase, if you buy close to the end of the month some dealers may have quotas that they have to meet, it might help you get some extra money off. you should also carefully check over the vehicle then try and have some of the defects discounted from the price, it might not work but they'll think you know what you're doing and wont try screwing you 😀

  8. buy a tesla, none of this crap is necessary and you won't feel like you got ripped off b/c you buy straight from the manufacturer

  9. Yeah, don't quibble about an additional 2 percent on that house purchase. Rest assured that you are being overcharged 50 cents on that gallon of milk, so just ignore the 10,000 dollars in extra charges on that house. Yeah, right. You are a fucking idiot.

  10. You guys should check out this EXTRAORDINARY website called FIREPA.COM . You can make money online and start working from home today as I am! I am making over $3,000+ per month at FIREPA.COM ! Visit Firepa.com and check it out! Why does the flame preserve the thirsty ornament? When does the beautiful language offset the statement? The turn refines the unarmed condition.

  11. Nothing wrong with telling me what other dealers offered. If I know that, and I can beat it, I will. Id say buy from someone you like and know where you want your numbers to be. As a sales person, just because you say, "give me your best offer" doesn't mean I can go to invoice. We gotta make a living, just tell me specifically what I need to get your business. Last thing is, sales people get lied to more than they lie to others, in my experience at least.

  12. How to negotiate. Walk in with cash. Say "I'll give you XXXXX for that car." If they say No, give them your phone number and walk out the door.

  13. When customer's ask about invoice, in the back of my mind, I am usually saying that is none of your business. When is the last time you asked for the invoice on a gallon of milk? That's right, never.

  14. I hope tesla takes over the car market and closes all these fools down LOL
    Buy straight from the maker and screw the middle monkeys out of the business .

  15. here us how to buy a car :
    customer : how much ?
    salesperson : $23000
    customer : i have $1500 , what do you say ?
    and go from there guys

  16. I like to tell the salesman, "If you pull out that 4 square crap, I'm walking out the door". My last 4 cars I have paid cash for. I negotiate selling price ONLY. If they ask how I will buy the car, I tell them, "That is my problem". ALL that 4 square paper does is confuse EVERYBODY, including the salesman.

  17. I just get my price from edmunds or truecar. That's what I'll pay or lower, if they don't accept leave your information and walk out.

  18. Same advice I use. I'm not interested in payments, interest rates, security systems, and making "friends". If I plan on doing any financing, I already know what payments I plan on using. I ONLY want the price from the salesman and I will make my offer. I only need the salesman to complete the paperwork for me, if the price is agreeable. Very simple. Even the salesmen enjoy dealing with me. They don't need to waste 5 hours with me. It is yes or no..

  19. I sold cars for 10 years and I have bought cars for over 40 years. In my lifetime, I have NEVER looked at an invoice. I'm not interested. I didn't need to see it when I sold cars, and I never asked for it when I purchased cars. I just offer what I feel the car is worth and what is in my budget.

  20. Cash provides no advantage for customers unless the customer has horrible credit. Either the dealership will get a check from you, or they will get it from the bank. It makes no difference to pay with cash.

  21. I hope these advice help me. I plan on going tomorrow to a dealership, who offered to buy my car and pay off the  balance. its upside down. 8k loan remaining, cars worth 4-5k if traded in. But its work 7-8k sold myself. So I am well aware that I can sell it myself. My hope is that they pay off in full, no negative equity added and they offer me the same car, but newer model year. I also know that the same brand dealer offers the model i want for 1-2k lower so i want that to match! I won't trade in my car unless they make it even where i pay the same as i am know. any advice?

  22. Everyone wants clean retail for their trade and wholesale for the car they want to buy.  3% is not an average profit for a  manufacturer.  The only manufacturers that make 3% are the big 3, most others make 1-2%.  Almost no one uses 4 squares anymore.  There is no problem telling one dealer what the other offered you, either they can beat it or they can't, it cuts out a lot of the "hassle" of negotiation.  The only time you shouldn't need to discuss prices is when you are cross shopping brands, that is pointless.  The only time you need to check about interest rates is when you are buying a used car.  No bank (you walk in to) will ever offer you 0%, .9% or even 1.9% on a new car.  Dealerships get sub-vented rates that you couldn't ever get.  Oh and just remember, the salesman sitting across from you is making $50-100 for that brand new car that you just bought.

  23. Negotiating is dead in dealerships. Dealerships post "Best Price" now in hopes of competing with internet sales.

  24. As a car salesman I wish customers did this. I'm more than happy to sell a car at invoice. Easier it is for the customer easier it is for me. I make plenty of money in volume bonuses I do not need to make money on the car itself. I learned a long time ago you don't make money fighting a customer. You make it in volume. Sad part is so many old school idiots still selling cars make us all look bad. 

  25. You all think that you work harder for your money than salespeople do!! You spend more money in groceries than you do a car and you don't negotiate with walmart do you? Didn't think so!

  26. Here's a great article that may answer a lot of your questions.
    http://www.infobarrel.com/10_Must_Know_Facts_About_Car_Leasing_and_Why_It_Can_Save_You_Thousands

  27. This is the best advise I have seen. This guy is correct. The key to buying a new car at a great price is preparation. With the proper research, a car buyer will have the advantage over any car sales person. There are many reasons a person sells cars. One of those is because that is the best job they can get. Car sales people are rarely smarter than a well informed buyer.

    When I buy I contact dealers via the Internet to feel them out. I research the dealers on line reputation. I want to determine which dealers seem to be the most ethical. I always ask for a price. Any dealer who does not provide a price is off my list. If they will not provide a price, they are likely a dealer best avoided.

    I select a dealer to visit. I keep the other favorable dealers in mind should my selected dealer turn out badly. Immediately I tell the sales person my price. Since my price is reasonable they rarely argue. I base my price on invoice less dealer holdback less all incentives and plus a 3-5% profit.

    Invariably, the sales person will turn me over to the sales manager. This avoids all the silly games sales people like to use. Fact is, most sales people are not equipped to deal with a knowledgable buyer.

    When buying a car, the buyer will never get the dealer's best price unless the sales manager is involved. So why waste time with the sales person. Only negotiate up from your number. If you reach an agreement great, everyone is happy. If you do not just walk away, there is always another dealer with the same vehicle.

    On final bit of experience, that friendly F&I person is just a sales person. His or her job is to get a buyer to pay huge money for a plethora of overpriced items which are essentially useless and which can usually be purchased elsewhere for a lot less money. Just say NO. However, do let the dealer try to beat whatever financing you got on you own. They may beat it. Remember, that F&I person is always a dealer's best sales person, always.

  28. Just convince the fucker that you're smarter than him and well known then he won't try any trixs trust me if you caught him trixing with numbers ask to speak with another salesman it will break him!

  29. Some of this advise is valid and a lot is nonsense. You should do research through your credit union on what interest rates are available based upon your credit but make sure it isn't the lowest rate available but the lowest rate available on the year and mileage of the car you are looking for. Rate's change based upon the level of risk and the older a car is or the higher the mileage the greater the risk for the bank (higher rate). The invoice is not what the dealer pays for a car but it is a figure that includes a few profits the dealer gets like holdback, possibly dealercash, etc. Do some research on the car you are looking to purchase and what the market is. A Honda Accord will sell for less profit than a special edition 4Runner for example. Supply vs Demand still applies to car sales. Don't be scared of the monthly payment as long as you are also aware of the interest rate, length of term on the loan and amount down in the calculation. These will all effect how the payment is determined. Don't "play the game". That may be the dumbest advise ever. You are negotiating a deal with someone trying to feed their family and if they feel you are messing around, playing games or attempting to waste their time your negotiation will be painful. Just like you a s a consumer don't want to deal with someone being dishonest nether does the car salesman and they will be just as offended as you would be. It is okay to sell your trade-in yourself and you should do some research as to what similar cars are selling for online but add in the time you would have to spend as well as any reconditioning, repairs, etc it may need. Definitely be prepared to walk if you feel you are not being treated in an upfront and ethical manner. At the same time don't say "take it or leave it" as this will come across just like it would to you and it will most likely result in an uncomfortable and confrontational experience. Be prepared by knowing what you will accept and what you will not before you sit down to negotiate and stick to your guns on what you are comfortable with and feel is fair. Expect fees but a lot of the optional fees can be beneficial depending on your specific situation. For example additional warranties may be a bad choice for someone who can afford to pay for possible repairs down the road but for someone who doesn't have much in savings it is a way to protect yourself from future hardships.

    P.S Stewie – Do not try to convince someone you know more about what they do for a living than they do. You will only come across as an idiot and will not be taken very seriously. I wouldn't try and convince and doctor I know more about health, a lawyer I know more about the law, or anyone that I know more about what they do every single day of their lives.

  30. go online find the closest person selling a vw (mainly golfs) inspect the car pay cash, you are done. NEVER buy brand new cars

  31. Do car dealer keep your downpayment let's say u buy a car for 6000 and u pay 4000 of down payment would u owe the car 2000?? Please someone help me out

  32. Okay so say im at a used dealership and there asking 5 to 6k for the car, and im willing to buy the car with no payments. How much can i expect them to go down if i have cash in hand?

  33. looking to save for one. if I saved for the full price car for example 30,000 couldn't I just pay the entire ammount out. instead of loans and having bad credit(suffering that)

  34. looking to save for one. if I saved for the full price car for example 30,000 couldn't I just pay the entire ammount out. instead of loans and having bad credit(suffering that)

  35. I did everything they said in the video. Now im rolling in a Nice Pretty Big Gas Hungry 2007 Yukon Denali Paying only $250 a month! No money down My Credit Union hooked me up big time!.! People with that kind of car are paying about $500, $600 I promise! But Not Me!

  36. If you pay above invoice, you're a total fish. Invoice pricing is the new MSRP. If you pay MSRP, you're just an idiot.

  37. 1. Don't negotiate in terms of "monthly payments" . This is where they prey on folks who don't really understand the true costs of loans. They can lower the monthly payment but extend the life of the loan significantly, and you will lose thousands.
    2. Pay cash if possible, but don't let them know till the very end. They will make concessions on the sale price, intending on recouping it in the finance side. So wait for the concession before you reveal you're paying cash, obviously only if you are able.

  38. I bought a 2014 truck on Wednesday and I got the resistant sales mgr to come down $2200. I found another one nearby just like it with less miles for a cheaper price. I screenshot it, plus the info on it and when the sales mgr wouldn't come down, I showed the pic. Instant price drop.

  39. I argued with VW for a few days because they kept lying to me, or not telling me the whole truth. I got the buying price of the vehicle down around $10k off the car but still didnt buy it because the numbers they told me were never the same numbers on the paperwork.

  40. If you do buy a car from a "stealership" do not finance it there. They will screw you up front for the car price and in the back "finance". Finance your vehicle through a local credit union. I will never buy a new car again, $5,000 will buy a nice used car. Save your money and pay cash.

  41. Don't let them focus on just getting you a payment you can afford. The salesmen in the video is using the "4 square" method dealers use to muddy the waters and get you to talk only about the monthly payment. That way you get screwed on the interest rate, trade in or purchase price or all three.

  42. Dealership don't negotiate these days. Either you are stick with the price they say or walk out. They don't care whether they sell a care or not.

  43. the invoice price is NOT the price a dealers pay for the car! The dealers price is lower, the invoice price is just a number, nothing more.

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