What are your tips/tricks to negotiating down the dealership?

[schaffer05]

I know my number going in. I tell them the number I want. If I have a trade, they get all the information on the truck, but nothing about how much I owe, how much I want, what my payments are. Once they make me an offer on my trade (I've already researched what it's worth) I tell them they need to come up. I usually get top KBB price or higher.

The big thing is to play dealers against each other. If one dealer has the specific vehicle you want, and they're not willing to work a deal for you, find another dealer that is and ask them to do a dealer acquisition for it.

I just traded my 2016 Tundra that I had for a year and 12k miles. I paid 38 for it brand new, got 37 for it on trade, and got my Tahoe for 15% off.

Dealer I got it from originally wouldn't give me more than 35500 for my truck, had another dealer try to get it away from them. Next morning they called wanting to make the deal with the 37k trade (what I told them I wanted, but hadn't been offered more than 36 by any other dealer).

With today's technology, I don't think there is any reason to set foot in the dealership until you're ready to sign paperwork. If they're not willing to deal like that, they're not worth dealing with. If you have a trade get it looked at by a couple local dealers, then you can branch out. Place I got my Tahoe from was over 5 hours away each way. They offered me 37k sight unseen on my truck, other than pictures.

Also, some people don't realize, but even the interest rate is negotiable. Dealers often add on a little % and that's money in their pocket.


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[chicagofan00]

I'll also add in that it's good if you can make the purchase as close to the end of the month or the current quarter as possible. Most dealerships will be willing to make even better deals then as they may only be a few more sales away from making their quotas or bonuses for that month/quarter and will be more than willing to make less on that specific vehicle and make it up with that bonus money.

 

[fozzi58]

I bought a Suburban Saturday and they took another $800 off the internet price that was already $4k+ under MSRP. They needed me more than I needed them because hardly anyone buys a 2WD in Jersey. It was a truck that fit my needs and the deal was good enough to make me happy walking out with the car. However the trade in $$$ they offered on my Avalanche was enough to make me keep the Avy and take my chances on Autotrader. (c'mon now - $7k for an 08 Avy in very good shape? I could give it away for $9k tomorrow!)

 

[Protect1989]

What are your thoughts on an ask of $61,364 ('17 Denali, 2WD, ACC, Sun package).

Basically I am taking the LauraGMC price of a '17 4WD Denali and subtracting 3k (the cost of the 4wd system). Everything else on the vehicles are the same.

Do you think that is a fair negotiating standpoint?

 

[WillCO]

Last comment I'll make on this topic: I believe that a good, fair, reputable business deserves to make a profit in any business transaction. That's how & why they stay in business and that's how they keep good, fair, reputable staff on board. For this reason, I do not believe in beating-up a decent dealer by pushing for an unreasonable deal.

+1.

In my experience, when you walk in with your research done, your comps in hand, and your tangible willingness to do a deal in the immediate term, a dealer will do the deal as long as it's reasonable. If they refuse, it's usually because of your deal and not their obstinance. They don't make any money by doing bad deals or no deals.

 

[fozzi58]

FYI - Just got a call from my insurance broker (State Farm) asking what my interest rate on the loan was. I took 4.9% over 72 months from Chase/JP which was through GM. She said State Farm will do 2.9% over the same term with no fees to switch the loan. Not sure how many of you have a big insurance company (Allstate, SF, Geico, etc) but it might be worth asking.

 

[BADRIDES]

This. Dealers could careless if you walked in with a dufflebag full of cash, they get paid incentives from the lender for you to finance plus they still get the same out of the car.

Walk in with cash and watch what happens. Only way I ever buy one.

 

[cardude2000]

Walk in with cash and watch what happens. Only way I ever buy one.

Try walking in and telling them you'll finance. Watch how crazy a deal you get when the sales guy makes money on the back end too.

 

[yates ™]

Walk in with cash and watch what happens. Only way I ever buy one.

No need to, I understand how they make money and it has less to do with the actual vehicle than you think.

 

[BADRIDES]

No need to, I understand how they make money and it has less to do with the actual vehicle than you think.

I work at a Chevy dealership so I know how it works. When a guy walks in our dealership with cash or cashier's check he gets hooked up.

 

[yates ™]

I work at a Chevy dealership so I know how it works. When a guy walks in our dealership with cash or cashier's check he gets hooked up.

Your dealership must be different than all the others I have ever heard of. Incentives are given from the banks for loans, extended warranties, accessories, vehicle manufactures. There is very little money for the dealership or salesman in a cash only dealing if there was no deanship would sell under invoice and there are many that make killing doing just that.

 

[about20ninj45]

FYI - Just got a call from my insurance broker (State Farm) asking what my interest rate on the loan was. I took 4.9% over 72 months from Chase/JP which was through GM. She said State Farm will do 2.9% over the same term with no fees to switch the loan. Not sure how many of you have a big insurance company (Allstate, SF, Geico, etc) but it might be worth asking.

I got 1.9% financing from ally with USAA discount and gm supplier discount

 

[AngelXL]

Your dealership must be different than all the others I have ever heard of. Incentives are given from the banks for loans, extended warranties, accessories, vehicle manufactures. There is very little money for the dealership or salesman in a cash only dealing if there was no deanship would sell under invoice and there are many that make killing doing just that.

I'm with Badrides. When I used to do slot work at the dealerships back on the 90s-2000s the salesmen will tell us it was about how many vehicles you were moving in a month. He didn't care if he made 100 or 1000k on a deal. I don't maybe times have changed.
I also like to walk on with cash in hand.
No BS around with their numbers.

 

[BADRIDES]

I'm with Badrides. When I used to do slot work at the dealerships back on the 90s-2000s the salesmen will tell us it was about how many vehicles you were moving in a month. He didn't care if he made 100 or 1000k on a deal. I don't maybe times have changed.
I also like to walk on with cash in hand.
No BS around with their numbers.

The more you sell the higher the bonuses. Goes off volume.

 

[yates ™]

Maybe things are different from dealer to dealer but my wife worked at volume dealer for awhile and the vehicles was a means to get incentives. Maybe the one you work for is still trying to make a living off the profit of each car.

Serious question, if what you say is correct, how does a volume dealer that sells under invoice make money?

 

[Protect1989]

What are your thoughts on an ask of $61,364 ('17 Denali, 2WD, ACC, Sun package).

Basically I am taking the LauraGMC price of a '17 4WD Denali and subtracting 3k (the cost of the 4wd system). Everything else on the vehicles are the same.

Do you think that is a fair negotiating standpoint?

 

[cardude2000]

Maybe things are different from dealer to dealer but my wife worked at volume dealer for awhile and the vehicles was a means to get incentives. Maybe the one you work for is still trying to make a living off the profit of each car.

Serious question, if what you say is correct, how does a volume dealer that sells under invoice make money?

Holdbacks, factory to dealer $$$ that they may not pass through, trade ins and the big one...Financing.

Historically 'internet' sales guys are straight up commissioned on volume which is why I've always emailed multiple dealers with the exact vehicle I want and the price I'm willing to pay and commit to buying the car by EOM if they meet my price. The one with the closest offer in their reply gets my business.

 

[cardude2000]

What are your thoughts on an ask of $61,364 ('17 Denali, 2WD, ACC, Sun package).

Basically I am taking the LauraGMC price of a '17 4WD Denali and subtracting 3k (the cost of the 4wd system). Everything else on the vehicles are the same.

Do you think that is a fair negotiating standpoint?

Get the invoice price for the vehicle, subtract and current offers (factory to dealer incentives etc) and then go in at $1000 under invoice. Work UP from there. Not DOWN from MSRP.

 

[yates ™]

Holdbacks, factory to dealer $$$ that they may not pass through, trade ins and the big one...Financing.

Historically 'internet' sales guys are straight up commissioned on volume which is why I've always emailed multiple dealers with the exact vehicle I want and the price I'm willing to pay and commit to buying the car by EOM if they meet my price. The one with the closest offer in their reply gets my business.

Trade ins are money but they're not scrapping by on new to make on used, if that was the case they would be a used dealership. Factory to dealer is one thing I mentioned, maybe not the exact wording, but the same. Also mentioned financing as they get incentives for people to finance, thus why a bag of cash would be worse in most cases than someone willing to setup financing there. Sounds like we are on the same page.

 

[yates ™]

Here is an article also explaining it. https://www.forbes.com/sites/jimhen...-make-the-most-money-off-of-you/#4351f7c01e6f