How to negotiate
04-08-2005, 04:10 PM
#1
How to negotiate
Hello all,
I've been a TSX owner since Jan. '05 ('05 5AT Silver), but have never posted until now (only lurked quite a bit). I love my TSX!
In reading quite a few threads about people purchasing TSX's I've noticed a few common tactics among posters, especially those who are younger and the TSX might be their first real / new car purchase.
- There's a tendency to want to negotiate DOWN with a dealer... You never, ever, ever do this! Negotiating down will never get you the best price and almost always works to the dealers advantage.
- When negotiating high ticket items, especially like cars where it's easy to find and compare costs, you always negotiate UP. Yes, that's right, up. I notice over and over that people say, "Well the sticker is $XXXXXX, so I'm hoping the dealer will take XXXXX below that". Don't, it's the wrong approach.
Basic negotiating:
1. Find out the "true" cost of the vehicle. In the case of the TSX, that's dealers invoice MINUS holdback. Remember, even if a dealer sells you a car at dead invoice they are still making their holdback, which in the case of the TSX is generally $500 to $800 depending on options. If a dealer tells you otherwise, walk-out, they are flat out lying to you.
2. Start your offer at this price! You know you won't get it, but start negotiating at the rock bottom price. Never expect this price, it's not fair to the dealer (they are business and not a charity), but use it as a starting point. When you ask for $500 below invoice you'll get nothing but a laugh from the dealer, but when you say, "Ok, let's work from here and see what fair for both of us" they'll at least know your not willing to accept the first offer they give you.
3. It's generally acceptable, regardless of what any dealer tells you, that STARTING PRICE (holdback + invoice) plus $500 is fair (for the dealer) on a TSX. Considering the current market / demand you probably won't do much better than that. That gives them roughly $1k turn over on the car and usually a shot at service down the line with a happy customer.
4. Unless you get the price you want... walk out! Never sign anything the first trip to a dealer. Be prepared to shop around, find other dealers and let the dealers know that's your intent. Don't let your emotions, excitement, feelings, etc get in the way. It's hard not to want to sign the deal right then and there, believe me... I got severely bent-over on my first couple of cars during my early twenties. I swore never again.
5. Remember that if the dealer can take advantage of you - they will. They are not your friend. They do not care about you. You are a walking $$ symbol to them (hopefully a lot too). Nothing more, nothing less. This doesn't mean you can't be friendly, it just means don't be too comfortable. They will not do anything for you unless it's benefitting them. Period.
6. Enjoy the process! Don't be stressed out, mad, confused, etc. It only lets the dealer know you're easily distracted and probably willing to settle at a higher price.
Remember to be fair and respectful yourself!
I hope others will chime in too as I'm sure I have a lot to learn, but the above advice has served me well on my last two vehicle purchases.
- sl
I've been a TSX owner since Jan. '05 ('05 5AT Silver), but have never posted until now (only lurked quite a bit). I love my TSX!
In reading quite a few threads about people purchasing TSX's I've noticed a few common tactics among posters, especially those who are younger and the TSX might be their first real / new car purchase.
- There's a tendency to want to negotiate DOWN with a dealer... You never, ever, ever do this! Negotiating down will never get you the best price and almost always works to the dealers advantage.
- When negotiating high ticket items, especially like cars where it's easy to find and compare costs, you always negotiate UP. Yes, that's right, up. I notice over and over that people say, "Well the sticker is $XXXXXX, so I'm hoping the dealer will take XXXXX below that". Don't, it's the wrong approach.
Basic negotiating:
1. Find out the "true" cost of the vehicle. In the case of the TSX, that's dealers invoice MINUS holdback. Remember, even if a dealer sells you a car at dead invoice they are still making their holdback, which in the case of the TSX is generally $500 to $800 depending on options. If a dealer tells you otherwise, walk-out, they are flat out lying to you.
2. Start your offer at this price! You know you won't get it, but start negotiating at the rock bottom price. Never expect this price, it's not fair to the dealer (they are business and not a charity), but use it as a starting point. When you ask for $500 below invoice you'll get nothing but a laugh from the dealer, but when you say, "Ok, let's work from here and see what fair for both of us" they'll at least know your not willing to accept the first offer they give you.
3. It's generally acceptable, regardless of what any dealer tells you, that STARTING PRICE (holdback + invoice) plus $500 is fair (for the dealer) on a TSX. Considering the current market / demand you probably won't do much better than that. That gives them roughly $1k turn over on the car and usually a shot at service down the line with a happy customer.
4. Unless you get the price you want... walk out! Never sign anything the first trip to a dealer. Be prepared to shop around, find other dealers and let the dealers know that's your intent. Don't let your emotions, excitement, feelings, etc get in the way. It's hard not to want to sign the deal right then and there, believe me... I got severely bent-over on my first couple of cars during my early twenties. I swore never again.
5. Remember that if the dealer can take advantage of you - they will. They are not your friend. They do not care about you. You are a walking $$ symbol to them (hopefully a lot too). Nothing more, nothing less. This doesn't mean you can't be friendly, it just means don't be too comfortable. They will not do anything for you unless it's benefitting them. Period.
6. Enjoy the process! Don't be stressed out, mad, confused, etc. It only lets the dealer know you're easily distracted and probably willing to settle at a higher price.
Remember to be fair and respectful yourself!
I hope others will chime in too as I'm sure I have a lot to learn, but the above advice has served me well on my last two vehicle purchases.
- sl
04-08-2005, 04:39 PM
#4
Advanced
Join Date: Mar 2005
Location: Pflugerville, TX
Age: 54
Posts: 70
Likes: 0
Received 0 Likes
on
0 Posts
Good advice to new buyers and great first post, sl1200mk2.
The only thing that I would add is to negotiate on the OTD price, not the price of the vehicle itself. That way you don't have to worry about getting screwed on dealer fees when you go to sign the final paperwork.
The only thing that I would add is to negotiate on the OTD price, not the price of the vehicle itself. That way you don't have to worry about getting screwed on dealer fees when you go to sign the final paperwork.
04-08-2005, 04:45 PM
#5
JOATMON
Join Date: Mar 2005
Posts: 47
Likes: 0
Received 0 Likes
on
0 Posts
Negotiating With A Stealer
This is definitely good advice. However, three other things come to mind from my experience:
(1) Financing v. Cash: Back in the day (I'm told), dealers would give you a little bit of a break if you were paying cash. Not anymore-- currently, most dealers want you finance so that they can get their vig. So if anyone gives you this advice, I'd probably ignore it (my opinion).
(2) Research: Point #4 is extremely important-- do your research and always be willing to walk off the lot. This point is also key with the 6MT TSXs-- they are harder to find, and you should know who has them and who doesn't before some dealer tries to hit you with a flatbed charge to get one from a competitor 20 miles away (i.e. one you could drive to).
(3) "Tack Ons and Dealer ID": This refers to accessories the dealer installs on the car and then tries to force you to pay for, such as mudflaps or door edge guards. I usually will accept wheel locks, but nothing else (door edge guards are good to have, but not at the Acura accessory price on the TSX...
). Also--and this is a pet peeve of mine-- Dealer ID. I tell them not to install it or I will refuse delivery (unless they are willing to cut me a monthly check for advertising them).
(1) Financing v. Cash: Back in the day (I'm told), dealers would give you a little bit of a break if you were paying cash. Not anymore-- currently, most dealers want you finance so that they can get their vig. So if anyone gives you this advice, I'd probably ignore it (my opinion).
(2) Research: Point #4 is extremely important-- do your research and always be willing to walk off the lot. This point is also key with the 6MT TSXs-- they are harder to find, and you should know who has them and who doesn't before some dealer tries to hit you with a flatbed charge to get one from a competitor 20 miles away (i.e. one you could drive to).
(3) "Tack Ons and Dealer ID": This refers to accessories the dealer installs on the car and then tries to force you to pay for, such as mudflaps or door edge guards. I usually will accept wheel locks, but nothing else (door edge guards are good to have, but not at the Acura accessory price on the TSX...
). Also--and this is a pet peeve of mine-- Dealer ID. I tell them not to install it or I will refuse delivery (unless they are willing to cut me a monthly check for advertising them).
04-08-2005, 05:34 PM
#6
Originally Posted by cl7tsx
"Tack Ons and Dealer ID": I usually will accept wheel locks, but nothing else (door edge guards are good to have, but not at the Acura accessory price on the TSX... ).
).I'll tell you what really let these guys know I was serious is when I busted out my laptop w/ wireless internet and started showing them everything they initially told me was BS and I knew what to expect. That's when I stopped dealing with the sales guy, sales manager and finance guy and went straight to the GM / owner. I doubt many people do that, but they should!
I forgot to comment on the dealer fees... as mention by someone above - EVERYTHING is negotiable. Lease fees, finance fees, dealer fees, shipping, all of it is fair game.
If you lease, watch the money factor - that's where the dealer typically hides the fee's and makes their money. Take the time to find one of the Excel sheets online for computing lease price / money factor. You'll save yourself hundreds if not thousands by the end of the lease. It's confusing as hell at first, but if you take a good evening or two to think it through and study the figures it's worth it. The general manager was practically stunned that I could tell him to the near fraction what his figures were before he could tell me.
At the end of the day they weren't afraid to tell me (laughingly while looking at other customers on the floor through the office glass) that "some people get better deals than others... you're one of them". Keep in mind this is after they intially told me the first deal that was nearly $3k more "was a great price - you won't do any better".
How easily they forget....
04-08-2005, 11:27 PM
#7
|____\\===(/\)===//____|
Join Date: Apr 2005
Location: Montreal
Age: 50
Posts: 42
Likes: 0
Received 0 Likes
on
0 Posts
I will make my first post a helpfull one
http://www.carbuyingtips.com/
There is some good tips in there as well
Mine will be probably signed next wednesday, I'll just have to sell my "old" Mazda 3... anyone interested
J.
http://www.carbuyingtips.com/
There is some good tips in there as well
Mine will be probably signed next wednesday, I'll just have to sell my "old" Mazda 3... anyone interested
J.
Trending Topics
04-08-2005, 11:52 PM
#8
Originally Posted by cl7tsx
(2) Research: Point #4 is extremely important-- do your research and always be willing to walk off the lot. This point is also key with the 6MT TSXs-- they are harder to find, and you should know who has them and who doesn't before some dealer tries to hit you with a flatbed charge to get one from a competitor 20 miles away (i.e. one you could drive to).
Anyway, a dealer found one by pure chance delievered to a dealer 127 miles away. In fact, when the driver came over to pick it up, it hadn't even gone through PDI yet. Yah I got screwed and paid $800 above invoice, but i'm happy for the most part with my purchase.
04-09-2005, 05:08 AM
#9
Moderator Alumnus
Join Date: Jul 2003
Location: Windsor-Quebec corridor
Age: 47
Posts: 7,709
Likes: 0
Received 6 Likes
on
4 Posts
Actually, some lucky bishes here managed to buy their TSXs at invoice.
There are a few good ways of negociating good deals. Your suggestion is excellent.
I really have to agree 110% with your last statement: "Remember to be fair and respectful yourself!" So many members arrive here and whine about the bad attitude their dealer has when in reality they should take a long look at themselves in the mirror if they want to cut down a good deal for themselves. It's not like the dealers owe anyone of us anything.
There are a few good ways of negociating good deals. Your suggestion is excellent.
I really have to agree 110% with your last statement: "Remember to be fair and respectful yourself!" So many members arrive here and whine about the bad attitude their dealer has when in reality they should take a long look at themselves in the mirror if they want to cut down a good deal for themselves. It's not like the dealers owe anyone of us anything.
04-09-2005, 09:32 PM
#10
Originally Posted by sauceman
Actually, some lucky bishes here managed to buy their TSXs at invoice.
04-30-2005, 11:08 PM
#11
Redbiff
I'm 22 and in Sales at A Honda Dealer. It really depends on the sales person that you are dealing with. Honda has a very fair MSRP on all their cars and their cars are worth every penny. Of course Everyone knows that you don't pay MSRP. The Point is that not everyone in a dealer is your enemy and that you can always get the best deal on a car that is in stock
05-01-2005, 01:04 AM
#12
Got Phó?
Originally Posted by sauceman
Actually, some lucky bishes here managed to buy their TSXs at invoice.
There are a few good ways of negociating good deals. Your suggestion is excellent.
I really have to agree 110% with your last statement: "Remember to be fair and respectful yourself!" So many members arrive here and whine about the bad attitude their dealer has when in reality they should take a long look at themselves in the mirror if they want to cut down a good deal for themselves. It's not like the dealers owe anyone of us anything.
There are a few good ways of negociating good deals. Your suggestion is excellent.
I really have to agree 110% with your last statement: "Remember to be fair and respectful yourself!" So many members arrive here and whine about the bad attitude their dealer has when in reality they should take a long look at themselves in the mirror if they want to cut down a good deal for themselves. It's not like the dealers owe anyone of us anything.
Thread
Thread Starter
Forum
Replies
Last Post
mrkingstonvi
Member Cars for Sale
2
02-22-2016 01:53 PM
saturno_v
Car Talk
61
10-28-2015 06:57 PM
