It has been a LONG TIME since I have bought a new vehicle and I absolutely HATE dealing with any salesperson; especially, a car salesperson.

The last time I bought a vehicle was a car for my wife in 2012, and a motorcycle for me in the same year. I bought my current truck in 2002. So I am sure a lot has changed since then as far as negotiations or buying a vehicle.

Do car dealers even negotiate anymore? I am used to looking the vehicle up and reducing the MSRP by a certain percentage. Dealerships even if they show you the invoice, make money off manufacture discounts, dealer maintenance, dealer financing, etc, so they can come down in price.

My wife wants/needs a new vehicle and I would plan to go to the dealership, or online, to see a vehicle she wants and then look it up via VIN to see what I think I want to pay. I am a patient person and am happy to walk away from deals. I am thinking this is a good time of year with them wanting to get rid of previous inventory.

We plan to retire in 11 years so the plan is to get her vehicle now, pay it off, then get my new truck, and pay it off so we go into retirement with two newer vehicles paid off.

They do still negotiate, these days. I’ve bought two new cars (work) in the last year and a half.
I keep it to two separate transactions if you will: The new car I’m buying and the one I’m trading in.
Negotiate each side/value separately - don’t allow them to bundle it all together.
If you plan on using the manufacturer’s financing arm (i.e.- Honda Finance), they will usually be even more flexible or receptive to negotiating.
Be reasonable on values, and get what you want. Life is short.

I have purchased 5 new vehicles in the last 9 years, and negotiated every one of them. I did all of them by email or phone when needed. I refuse to sit in a dealership for hours. It sounds like a lot of dealerships are pretty flush with cars now too, so you might be able to snag a good deal. End of month and year are good times to buy too.

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Originally posted by VictimNoMore:
They do still negotiate, these days. I’ve bought two new cars (work) in the last year and a half.
I keep it to two separate transactions if you will: The new car I’m buying and the one I’m trading in.
Negotiate each side/value separately - don’t allow them to bundle it all together.
If you plan on using the manufacturer’s financing arm (i.e.- Honda Finance), they will usually be even more flexible or receptive to negotiating.
Be reasonable on values, and get what you want. Life is short.

Thanks. Good point. Yes, I always first got a trade-in value locked in first. Then move on to the new vehicle purchase. I HATE the question, “What do you want to pay per month?” No, it is what do I want to pay for the vehicle!!!!

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Originally posted by xantom:
I have purchased 5 new vehicles in the last 9 years, and negotiated every one of them. I did all of them by email or phone when needed. I refuse to sit in a dealership for hours. It sounds like a lot of dealerships are pretty flush with cars now too, so you might be able to snag a good deal. End of month and year are good times to buy too.

Good to hear. Yeah my wife has been bugging me for a year at least and I told her to just wait until now.

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“What do you want to pay per month?”

Translation: How deep do you want us to penetrate you?

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Originally posted by 12131:

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“What do you want to pay per month?”

Translation: How deep do you want us to penetrate you?

Yup! I also play “dirty” by acting stupid when negotiating price that I will use their financing and then use them for all dealership maintenance. I then ensure the financing allows it and drop a huge payment AFTER financing and add additional principal to each payment. Then of course I do my own maintenance.

Today's car dealers don't sell automobiles, they sell payment plans. "Special financing" with extended payments at low quoted rates "for qualified buyers". In addition to having sterling credit rating you usually have to pay full dealer price.

Next you meet the finance manager whose job it is to load up the deal with extended warranties and credit life/accident/disability insurance, all figured into the deal.

I suggest going to your bank or credit union before you go shopping. Get your financing pre-approved before you walk on the dealer's lot. Know exactly what your trade-in (if any) is worth (retail, wholesale, average trade). Tell the sales rep what your needs and requirements are, see what they show you and if anything appeals to you. Then make your offer, knowing in advance that they want a higher price and want to give you less for your trade.

Smile, leave your name and phone number so they can call you later with their best deal, walk out.

Car salesmen and dealers will tell you that less than half of potential buyers will qualify. The last thing they want is to watch a pre-qualified buyer leaving without a new vehicle.

By the way, all the options and special features are very high profit add-ons, as well as any dealer-installed stuff. Lots of that crap is marked up 500% or more so you can play hard ball all you like. Factory sticker prices include delivery charges and allowances for dealer prep and handling. Documentary fees and title transfer fees are a cost of doing business.

Take it or leave it is still a valid negotiating tool.

Just a thought, have you considered just putting aside the money you would make on the payments and then paying cash when you have enough saved. That would put you with newer vehicles closer to retirement. Also stuff happens the older we get and having the cash on hand until you are ready to buy is also a benefit.

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Originally posted by LoboGunLeather:
Today's car dealers don't sell automobiles, they sell payment plans. "Special financing" with extended payments at low quoted rates "for qualified buyers". In addition to having sterling credit rating you usually have to pay full dealer price.

Next you meet the finance manager whose job it is to load up the deal with extended warranties and credit life/accident/disability insurance, all figured into the deal.

I suggest going to your bank or credit union before you go shopping. Get your financing pre-approved before you walk on the dealer's lot. Know exactly what your trade-in (if any) is worth (retail, wholesale, average trade). Tell the sales rep what your needs and requirements are, see what they show you and if anything appeals to you. Then make your offer, knowing in advance that they want a higher price and want to give you less for your trade.

Smile, leave your name and phone number so they can call you later with their best deal, walk out.

Car salesmen and dealers will tell you that less than half of potential buyers will qualify. The last thing they want is to watch a pre-qualified buyer leaving without a new vehicle.

By the way, all the options and special features are very high profit add-ons, as well as any dealer-installed stuff. Lots of that crap is marked up 500% or more so you can play hard ball all you like. Factory sticker prices include delivery charges and allowances for dealer prep and handling. Documentary fees and title transfer fees are a cost of doing business.

Take it or leave it is still a valid negotiating tool.

Good info, thanks.

My last 2, I went in pre-approved with outside finance, at a significantly better rate, and went with the 'give me an OTD number' and they can play with how they want to structure it on their time.

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Originally posted by fischtown7:
Just a thought, have you considered just putting aside the money you would make on the payments and then paying cash when you have enough saved. That would put you with newer vehicles closer to retirement. Also stuff happens the older we get and having the cash on hand until you are ready to buy is also a benefit.

Oh, we have well enough cash to buy both vehicles outright in cash right now. I just prefer to do a down payment and then pay off early so we keep more cash in reserve. I just want to make sure I negotiate the lowest price for the vehicle, which I was very good at 22 years ago but I know things change.

What vehicles are you considering & what part of TX?

I signed into Tru-Car, I think via Consumer Reports.
You selected make, model, trim, color etc. then you can see what other people have paid in your area for similar cars.
You will get texts from multiple dealers; take the best offer to the dealer you want to buy from and they will likely match it.
I got $1500 off MSRP in 2018 when the brand-new Accord models were just becoming available.

It’s pretty easy. Get on the forum for the vehicle you want to purchase. They’ll have some section, some thread, where buyers around the US are posting what deal they got. Before TTL. Do your research before you even contact a single dealer. You decide what you are willing to pay. Set that number in your head, write it on a piece of paper, or type it into your phone, whatever. Do not deviate from that number. Don’t let a local dealer try to “meet us in the middle” type bs. If the best deals are flying to purchase and drive it back, figure out the flight cost, add that to the purchase price, and go back and negotiate with a local dealer.

I enjoy the process because when they start their games, I just say nope. Then I get up, and walk out. No adds on. F your extended warranty (you can purchase that later from any dealer in the states), F your wheel and tire protection plan, F your service plan, F all of it. The only thing I’ll eat is the port installed options, if there are any. I straight up refuse to pay for any dealer add ons like tint, LoJack, and whatever else. But I’ll research and see, beforehand, what is standard, from buyers, not sellers. Take your time. You may have to say no 6 times over a month or two, refusing their meet in the middle crap. Stay your course. Remember, they HAVE to sell a vehicle to eat. You DON’T have to purchase one from them. Where people go wrong is this I have to have it now mentality. Or “I don’t want to mess with this, how much is it?” MSRP’s have really increased over the last say, 5 years. Many mfr’s have increased prices on models/trims, a full $10k. I’ve purchased 3 vehicles in the last 5 years. 2 I got right at invoice, the third was a limited edition model where the MSRP I paid, was a good deal, because most were paying $10k to 20k over MSRP just to get one. Be patient, remain vigilant, and you’ll win every time.

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I suggest going to your bank or credit union before you go shopping. Get your financing pre-approved before you walk on the dealer's lot. Know exactly what your trade-in (if any) is worth (retail, wholesale, average trade).

Its been a few years since I consulted for new auto dealership accounting. At that time 50% of dealer profit was in financing kickbacks and warranties. If the salesman thinks you are going to finance thru the dealership you will get a better deal. Banks give kickbacks to the dealership every month you make a payment. After you purchase the auto immedately refinace with your bank, credit union, or online if you find a better rate. I had a salesman tell me once that a normal scam was to increase the interest rate to increase the kickback.

I recently purchased two near SUV's. Both SUV's were "In demand" and the dealers were very reluctant to negotiate. I do believe that is changing as inventory becomes more plentiful. Lexus is very in demand and will not negotiate. Hyundai has a ton of Santa Fe's on their lot and will negotiate! Best advice is to negotiate on your trade in and remember that you will not pay tax on the trade in portion of your purchase.

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remember that you will not pay tax on the trade in portion of your purchase.

That is not true in all states. Also verify the sales tax as dealers are known to make "computer errors". Dealers also will add other "taxes" in addition to sales tax such as Business Tax & Franchise Tax.

What Prefontaine. You have the all the cards. They don't. The only time you'll lose is if you let them bluff you.

If you wait till the last day of the quarter, you may find the dealer much more open to negotiation. The last day of the month also has some benefit. Dealers are finalizing their numbers and want to get that last sale or two in.

You can contact the dealership by email or visit. Take a test drive or two. Tell them you are just looking for now, but may be in the market in the near future. Leave contact info. Do this with more than one dealership if they are close. Then wait until the end of the quarter for the best deal.

End of year might be even better, but I’ve never bought a vehicle in December.