Car buying from dealer. 5 tips and tricks

 Welcome to car buying in 2022! 

The pandemic has really screwed over the average person looking to now buy a new or used vehicle. Case you haven't notice, what I mean is the prices of used cars have been steadily climbing to absurd heights and new car inventory is still at some pretty all time lows.

How did we get to this point? Well, if you have not been paying attention it all started with the pandemic and then coupled with trade sanctions, taxes and natural disasters has placed America in a tough spot for new and used car buyers.

But all that aside, so you want to buy a car from the dealer and want some tips and tricks to help you get a best price for yourself (or at least not get robbed blind) while negotiating prices with the salesperson and financing office. Car salesmen and women, have the reputation of being high pressure salespeople that are out to do whatever and say whatever it takes to make the sale. So, while many will agree or disagree with that statement, you are here for some last-minute tips and tricks when purchasing a car from a dealer to get the best deal possible.

5 Tips and Tricks for buying a car or truck from the dealer:

1. Know the vehicles price within 50 miles.
2. Let them know you are looking to buy now
3. Interview your salesperson
4. Negotiation prices with sales
5. Slow down Financing

Now let's break this down quick.

If, you are reading this in the dealership right now buying a new or used car/truck. Go step outside or to the bathroom take second, clear your mind and come back to go through this. Ok, ready? Let's get you ready to start (or restart) your vehicle buying process and negotiations.

• Know your prices - That car you want, what is everyone else asking for on price? This means you should know not just what the dealer is asking for a car you want but also what are the other dealers around you asking for that car. The dealers do not car what the private party is selling that car for and think about it, you shouldn't either. Both car buying experiences are different. They both have their good and bad, but for now, just trust me, they do not care and they will not negotiate based on that vehicle! So, for the model and year of the vehicle you are buying find prices for those vehicles within 75miles tops that are similar in trim, mileage and condition. The dealer will only consider their competition to be another dealership within usually an hours drive of them. Statistically, no one is going 5 hours or more away to get a car a thousand dollars cheaper. If you do, hats off to you and good luck with that! Stats show not one sales person either cares or can change anything about dealers they are not directly competing with. Why? Well if you want to know than you can read more here and some pointers on how to purchase that car or truck here without wasting time and money.  What is the lower few and average asking price on that same vehicle with similar trim, mileage, and condition, within 50 miles.  Shrink that distance if there are over 30 vehicle listings. Ideally you want to find 30 results or under that match your criteria from at least different 3 dealerships withing no more than 1 hour drive away. 

• Let them know when you plan on buying and it should be now or soon! The manufactures are already facing raw material shortages, labor issues, and supply chain constraints and that means prices are constantly changing right now and nothing looks to be improving on that end any time too soon. Fed rates are also expected to rise more than once this year which means it cost everyone more not just you to buy a vehicle. There are other considerations as well but, if supply is low already and price is expected to only hold or go up that salesperson and that dealership is not too worried about selling to someone in months or weeks from now when someone else will walk in after you and buy that same vehicle with less time spent (which means more money lost) with that salesperson. So be honest with your salesperson that you want to buy now. Good salespeople understand time as money, and they will work harder to get you a good price even if it takes from their commission because the turnaround time is faster meaning they can take less money right now if they feel they can make more overall from the next buyer. Your sale, even if a no money or small (mini) deal for them will make that person's sales numbers that much closer to hitting monthly goals for cars sold.  Not only that but, if your salesperson and the business office get along well that finance office will want to help that salesperson make that number even if it cost the dealer some cash. So, be sure not to make them feel you are wasting their time, the salesperson wants to get to the next customer that is buying today before someone else does so that is so keep them from that and they will cut you lose and walk away from a "deal" or will not give up as much in negotiations. 

• Get to know your salesperson. Okay, we do not need to be on any deep middle-name basis or whatever but, build rapport with them also. Pay attention to see if they are in a hurry to move on to someone else or go home, are they trying to move you to a certain unit. If so than read this. Have they been there long or new to the job. Get them to like you and they will be willing to work with you. People like talking about their interests and feel comfortable being honest with people they are comfortable with. Got it? Find some common ground and do not just let them use that to work on you but use that to work with them. Ideally you both want to find a win-win deal no one is looking to "take advantage of" someone they like.

• Time to Negotiate! Okay, is everyone getting along and feel good about the car and timeline now. Feeling like there is some professional or mutual respect for each other yet? If so time to talk about numbers. Remember, prices have been climbing and even though inventory may be coming back prices are rising. With this in mind, you know what other places nearby are asking for that particular car or truck and while thousands of dollars off is highly unlikely these days, a hundred to $500 is not out the window for negotiations. Convey to the sales person at this point that you want to see some numbers are before you ask for a savings. A good salesperson will not discount more than they can approve at this point if they already gave you a price. If they show no discount. Ask for some specific dollar amount off but let them know why. Is there something wrong with the car that was not accounted for on the price. If so read this! Is the other dealers asking for that lower price nearby? Pick a dollar amount discount and state why that amount, if no reason than do not give a fake one, and let them know if this discount works, I can make this deal. Your salesperson will bring that to the business manager he will except or he will counter. If he counters you counter again. This way here you know you are leaving nothing on the table. If no counter, you either shot too low or there is probably someone else they believe will buy that for more. Now, except the price or thank them and let tell the salesperson to reach out right away if something changes or they get another in that matches.
• Okay, you made it to the Business Managers office. Two ways you can play this.