How do you haggle or talk down the price off the MSRP. I never really knew how to "talk" to those sales associates so I always ended up not getting anywhere at the dealerships. Just wanted to know what everyone else did and how effective it was in getting what you wanted or near what you wanted. Any secrets? lol

 

The secret is to know the invoice on the car and be ready to make a decision while you're there. The words, "if you can do this, I'll take it" are very powerful to us.

 

+1 negotiating the price of a car purchase from the top down (how much of a discount are you going to give me) isn't nearly as effective as knowing the cost (invoice etc) and then negotiating the profit on the deal. That said, there are still lots of ways dealers pad deals to make extra money (financing gimmicks, dealer installed options, extra profit insurance and warranty coverages, etc).

Too much already written on that at Edmund's, etc ... Google the subject and be an informed / equipped consumer instead of a sorry-after-the-fact buyer!

 

I guess knowing invoice would help for new cars. I should have been more specific, how do you haggle for used cars? I checked edmunds for the True Market Value of the car but it's listed lower then the "dealer retail price". I'm not looking for a HUGE discount be whats a good way to knock off about 2-3k off the price? (more would always be nice)

 

try and get a manheim auction report as well, that might give you a better idea of the market value of the used car in question over edmunds....

 

You said the magic word, buddy: USED.

Used and new car sales are two completely different ballgames.. In any event, the most effective learning experience I've had was working in sales myself.

Invaluable experience

As a purchaser, be educated (in terms of cost analysis, alternatives etc.) be firm (confident and tactful,) be real, and never show weakness.

Know what you want and know who you're dealing with. Portray it. If you're well-informed, you can use the almighty power of leverage to your advantage.

As much as "salesmen are people too" understand that we were trained to size you up and spit you out.. in the money, of course

 

+1

As a buyer, understand that when negotiating with a dealer they will not sell you a car unless they make a certain minimum amount of profit - period. If the dealer "sizes you up" as a serious buyer you can do the offer/counteroffer thing to figure out what their final offer will be. Do your research to determine a good price before you negotiate. Its also a good idea to line up your financing before you set foot on the lot. However, avoid telling the dealer you already have financing or what your loan limit is until you negotiate an "out the door" sales price IN WRITING. Dealers do get financing incentives and will lower the sale price on a car in order to make more profit on the financing.

If you are dealing with a private seller, there are many variables at play. Keep in mind that in many cases, the seller NEEDS to sell the car so you alredy have an advantage. If you come across a buyer who has no need to sell then you will find it harder to negotiate.

 

The Internet has really made shopping for a pre-owned car a lot easier and has also taken away a lot of the haggling. When we price a car we use a tool called V-Auto. It tells us what similar cars in a 150 mile radius are selling for from dealers, private sellers, auctions, etc. We try and price ours in the lowest 3 to attract more buyers which keeps us really honest but leaves little room for negotiation.

 

don't worry, just go to the dealership and 'lay down' . they'll take good care of you
all kidding aside, just be aware when a dealership takes in a used vehicle as a trade in, they will try to buy them well below blue book value to maximize their profits. in the worst case scenario if they sell it at blue book, they will still make a small profit. Your target negotiation price for the vehicle should be blue book value.