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stovt001 · 12-02-2007, 07:48 AM

Here's my dealership advice:
1. Do your homework before you go in. Find out if the dealer is doing markups, sticking to MSRP, or allowing negotiations. Go on Edmunds.com and find out the invoice and true market value of the car and the options you want. With just a little research you'll probably end up knowing more than the salesman. The more you know, the more power you have over him, which brings me to...
2. Take control of the meeting. Don't let the salesman show you around. Take him to the car you want, tell him what you want. Dictate everything.
3. If you can negotiate the price, negotiate around the full cost of the car, not the monthly payments. They can charge you double the sticker price and still make the monthly payments look good. The best way is to negotiate everything separately. If your bank or (even better) credit union offers financing at a lower rate than the lender the dealership uses (which is often the case) get financing from your institution ahead of time. That way you go in with the terms of the loan already established. Likewise, negotiate trade-in value (if any) separately. Often they will try roll the value into your monthly payment so you don't see how much they're actually giving you for the car. Don't let them do that. Negotiate the full value of the trade in and make sure it is acceptable before even talking about the cost of the car. Then negotiate the car's price itself. Don't mention monthly payments. Just get the price of the car, taxes, registration, etc etc etc. all set in one "walking out the door price" of $XX,XXX.XX. If you already got financing from your own lender, then hand over the check and enjoy your new car. If you are going through the dealership's financing, then negotiate payment terms, but DO NOT let them change the final figure. Interest is the only thing that should change.
4. Any add-ons advocated by the F&I department are generally not worth it. The dealer makes very, very little money on the car itself. Almost all of their profits come from F&I add-ons and service. As such the profit margins are huge and therefore the value to you is usually not anywhere near the cost.

I used to work at a dealership, and those are my personal observations. If you want any more advice let me know. I know how these things work inside out.

12-02-2007, 07:48 AM	#6
stovt001 Drives: 2006 Cobalt, 2004 Taurus wagon Join Date: Oct 2007 Location: California Posts: 3,810	Here's my dealership advice: 1. Do your homework before you go in. Find out if the dealer is doing markups, sticking to MSRP, or allowing negotiations. Go on Edmunds.com and find out the invoice and true market value of the car and the options you want. With just a little research you'll probably end up knowing more than the salesman. The more you know, the more power you have over him, which brings me to... 2. Take control of the meeting. Don't let the salesman show you around. Take him to the car you want, tell him what you want. Dictate everything. 3. If you can negotiate the price, negotiate around the full cost of the car, not the monthly payments. They can charge you double the sticker price and still make the monthly payments look good. The best way is to negotiate everything separately. If your bank or (even better) credit union offers financing at a lower rate than the lender the dealership uses (which is often the case) get financing from your institution ahead of time. That way you go in with the terms of the loan already established. Likewise, negotiate trade-in value (if any) separately. Often they will try roll the value into your monthly payment so you don't see how much they're actually giving you for the car. Don't let them do that. Negotiate the full value of the trade in and make sure it is acceptable before even talking about the cost of the car. Then negotiate the car's price itself. Don't mention monthly payments. Just get the price of the car, taxes, registration, etc etc etc. all set in one "walking out the door price" of $XX,XXX.XX. If you already got financing from your own lender, then hand over the check and enjoy your new car. If you are going through the dealership's financing, then negotiate payment terms, but DO NOT let them change the final figure. Interest is the only thing that should change. 4. Any add-ons advocated by the F&I department are generally not worth it. The dealer makes very, very little money on the car itself. Almost all of their profits come from F&I add-ons and service. As such the profit margins are huge and therefore the value to you is usually not anywhere near the cost. I used to work at a dealership, and those are my personal observations. If you want any more advice let me know. I know how these things work inside out.