Originally Posted by JeepGCOverland
I'm attempting to negotiate on several leftover 2015s, and so far, the dealers won't budge from their listed prices ($10,000-$11,000 off). I might buy if they knocked another few thousand off, but otherwise I'd rather pay a bit more for a 2016 or even a 2017. If anyone has any tips, please let me know!
I posted this in another forum, so just pasting it again here. This is the playbook on how I negotiated my deal:
1) Show them that you are serious
This means getting your best financing
offer in place first (call your bank or credit union). Dealers get a kick back for certain loans that the do, so this is part of the deal for them. They also need to have people with good credit in their dealer loan portfolio, so if you have a really good credit score, they may make you a better deal if they need to boost their average rating. Tell them "My best loan rate right now is X% for X months. I'll go with your financing if you can beat it."
Value your trade if you have one. Carmax will give you a free trade in estimate on your trade in. You can get that amount regardless of whether you buy a car. You can use this to show that you've done your homework and it gives them an understanding of whether they see any additional profit in your trade.
2) Let them know that you are shopping multiple dealers
Believe it or not, a lot of people just go to the closest dealer to them and try and cut the best deal. If a dealer knows that you are shopping around they will treat you differently with their offers. I try to do almost all of my negotiation by phone or email. They want you in the dealership because they have success with customers once they corner you in an office. Don't let that happen. I will go to 1 dealer early in the process to get their best "out the door" offer- the price of the car including tax, tag, and fees. These fees vary widely and you really want to make sure you are negotiating the final price. Get an out the door price from one dealer and now you can start shopping that by email and phone with others. Also, feel free to drop the name of the dealer with your best offer. There are certain dealerships that they HATE losing to and they will sometimes step up their offer if they know you are dealing with one of them.
3) Create urgency
If they think you are just taking your time and there is no deadline, they have no reason to get their very best offer to you. Tell them that you are serious about buying the car and that you will make a decision next Friday. You don't actually have to buy next Friday, but having a deadline creates a panic for the dealer that if they don't act by then, they will lose you to a dealer that will. The last 3 cars I have purchased, I had a dealer swoop in on the morning of my "deadline" and beat my best price
4) Control the communication
Send the same email to 10-15 dealers that are closest to you and then wait. "I'm serious about buying XXX car on your lot. XXX dealership has offered me an out the door price of $XXk (including tax, tag, and fees) on a similar model. Can you beat that? I plan on finding the best deal possible on next Friday. My trade is XXXX and values at XXXX by CarMax. My best financing rate through my bank is X% for X months. I can go with your financing if you can beat that rate."
You will get lots of back and forth communication, but eventually you will get down to 2-3 dealers that are seriously competing for your business. Don't overcommunicate with any one of them. If you created the urgency, they will start to panic a bit. If they don't hear from you they think you are talking to someone else. On the final day, send another email to your top contenders "Today's the day I'm going to purchase. Looks like i will be going to XXXX dealer
. Their best offer was XXXX out the door."
This really has worked like a charm for me on several cars
and the final purchase process has been really smooth when I walked into the dealer.
Hope that helps.