6 Secrets Car Dealers Hope You Don’t Know
Knowing how dealerships work is key to getting the lowest price on your next rail.
Photo by Candybox Photos / Shutterstock.com
When my spouse and I sat in a dealer showroom, I had no doubt we would drive away in a brand fresh Nissan Xterra with all the extras – after paying a ridiculously low price.
«You`re killing me on this,» the sales manager told us as we negotiated to bring the price lower and lower. «I`m not making any money on this deal.»
I knew from my years as a journalist covering the auto industry that this dealer was banking on a gigantic bonus from Nissan for selling me this car. See, some automakers suggest dealers stair-step incentives. Basically, that`s a payment for each car – for example, $500 a car – paid when a dealer sells a specific number of designated models during a set time period.
As we drove off the lot in our tricked out, low-cost SUV, I was certain our purchase shoved the dealer into the magic zone. I knew we had found a bargain.
Some automakers have discontinued stair-step incentives at the insistence of dealers. But there are slew of other ways to make sure you snare the best possible deal on a car.
1. Shop at large dealerships
Leave behind the adage that puny dealerships will give you better deals. Large dealers can budge hundreds of cars every month, so they can likely afford to sell at least a few cars for less than the invoice price.
Reminisce, some automakers still suggest stair-step awards to dealers. And even if they don`t, they may suggest other incentives for meeting sales targets or moving specific models.
Two. Permit dealers to contest for your sale
There`s no need to drive all over town and haggle. Once you have made a list of the models you want to consider, simply go to the automakers` websites. Use the «find a dealer» contraption and permit dealers to contact you. I did that when we bought a Mini and had dealers vying for my business. Don`t timid away from letting dealers know you are talking to others. That puts you in a position of power.
One peak: Make sure you get an «out-the-door» price that includes all taxes, fees and extras. You don`t want to bank on an ultra-low price only to detect you also have to pay for numerous extras.
If you need a car loan, don`t leave behind to shop for the best deal on that as well. You can embark by comparing car loans in our Solutions Center.
Trio. Be pleasant
Do you want to work with someone who is unpleasant or hostile? Neither do car salespeople.
Yes, they want to sell cars for as much money as possible. They know you want to pay as little as possible. But if your salesperson likes you, they may well point you to models that better suit your needs and save you money. They may also sway their sales managers to give you some extras or even a price break.
Four. Recall, loyalty pays off
If you or a friend has worked with a specific salesperson in the past, email him or her directly when you are in the market for a fresh car. Salespeople who have established client bases are valuable to dealerships. They will work hard to win you a good deal because that increases their professional value.
Five. Consider a soon-to-be-discontinued model
I wished a two-seater sports car, but I didn`t want to pay a premium price. So when I went shopping for a Mini, I considered models that I knew dealers were anxious to budge. I ended up with a Mini Cooper Roadster. I knew the model would be discontinued soon.
6. Don`t negotiate on dealer holdbacks
Car pricing is more complicated than many buyers realize. Auto manufacturers build in what are known as «dealer holdbacks,» which give dealers pricing leeway. Again, the amount varies, but holdbacks basically give dealers the capability to price some cars below the invoice price and still make a profit.
Holdbacks are something akin to sacred ground for car dealers, tho’, with most dealers unwilling to share them with buyers, Edmunds says. Don`t even attempt to negotiate into the holdback.
Do you have secrets for getting a deal on a fresh car or truck? Share with us in comments below or on our Facebook page.
It’s Not The Usual Blah, Blah, Blah
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6 Secrets Car Dealers Hope You Don – t Know, Money Talks News
6 Secrets Car Dealers Hope You Don’t Know
Knowing how dealerships work is key to getting the lowest price on your next rail.
Photo by Candybox Pictures / Shutterstock.com
When my spouse and I sat in a dealer showroom, I had no doubt we would drive away in a brand fresh Nissan Xterra with all the extras – after paying a ridiculously low price.
«You`re killing me on this,» the sales manager told us as we negotiated to bring the price lower and lower. «I`m not making any money on this deal.»
I knew from my years as a journalist covering the auto industry that this dealer was banking on a phat bonus from Nissan for selling me this car. See, some automakers suggest dealers stair-step incentives. Basically, that`s a payment for each car – for example, $500 a car – paid when a dealer sells a specific number of designated models during a set time period.
As we drove off the lot in our tricked out, low-cost SUV, I was certain our purchase shoved the dealer into the magic zone. I knew we had found a bargain.
Some automakers have discontinued stair-step incentives at the insistence of dealers. But there are slew of other ways to make sure you snare the best possible deal on a car.
1. Shop at large dealerships
Leave behind the adage that puny dealerships will give you better deals. Large dealers can stir hundreds of cars every month, so they can likely afford to sell at least a few cars for less than the invoice price.
Recall, some automakers still suggest stair-step awards to dealers. And even if they don`t, they may suggest other incentives for meeting sales targets or moving specific models.
Two. Permit dealers to contest for your sale
There`s no need to drive all over town and haggle. Once you have made a list of the models you want to consider, simply go to the automakers` websites. Use the «find a dealer» instrument and permit dealers to contact you. I did that when we bought a Mini and had dealers vying for my business. Don`t timid away from letting dealers know you are talking to others. That puts you in a position of power.
One peak: Make sure you get an «out-the-door» price that includes all taxes, fees and extras. You don`t want to bank on an ultra-low price only to detect you also have to pay for numerous extras.
If you need a car loan, don`t leave behind to shop for the best deal on that as well. You can embark by comparing car loans in our Solutions Center.
Three. Be pleasant
Do you want to work with someone who is unpleasant or hostile? Neither do car salespeople.
Yes, they want to sell cars for as much money as possible. They know you want to pay as little as possible. But if your salesperson likes you, they may well point you to models that better suit your needs and save you money. They may also sway their sales managers to give you some extras or even a price break.
Four. Reminisce, loyalty pays off
If you or a friend has worked with a specific salesperson in the past, email him or her directly when you are in the market for a fresh car. Salespeople who have established client bases are valuable to dealerships. They will work hard to win you a good deal because that increases their professional value.
Five. Consider a soon-to-be-discontinued model
I desired a two-seater sports car, but I didn`t want to pay a premium price. So when I went shopping for a Mini, I considered models that I knew dealers were anxious to budge. I ended up with a Mini Cooper Roadster. I knew the model would be discontinued soon.
6. Don`t negotiate on dealer holdbacks
Car pricing is more complicated than many buyers realize. Auto manufacturers build in what are known as «dealer holdbacks,» which give dealers pricing leeway. Again, the amount varies, but holdbacks basically give dealers the capability to price some cars below the invoice price and still make a profit.
Holdbacks are something akin to sacred ground for car dealers, tho’, with most dealers unwilling to share them with buyers, Edmunds says. Don`t even attempt to negotiate into the holdback.
Do you have secrets for getting a deal on a fresh car or truck? Share with us in comments below or on our Facebook page.
It’s Not The Usual Blah, Blah, Blah
Join our 359,736 free newsletter subscribers building wealth and demolishing debt:
Get rich quick one day at a time
Sign up for our free newsletter for ways to make, save, and grow your money daily:
6 Secrets Car Dealers Hope You Don – t Know, Money Talks News
6 Secrets Car Dealers Hope You Don’t Know
Knowing how dealerships work is key to getting the lowest price on your next rail.
Photo by Candybox Pics / Shutterstock.com
When my spouse and I sat in a dealer showroom, I had no doubt we would drive away in a brand fresh Nissan Xterra with all the extras – after paying a ridiculously low price.
«You`re killing me on this,» the sales manager told us as we negotiated to bring the price lower and lower. «I`m not making any money on this deal.»
I knew from my years as a journalist covering the auto industry that this dealer was banking on a massive bonus from Nissan for selling me this car. See, some automakers suggest dealers stair-step incentives. Basically, that`s a payment for each car – for example, $500 a car – paid when a dealer sells a specific number of designated models during a set time period.
As we drove off the lot in our tricked out, low-cost SUV, I was certain our purchase shoved the dealer into the magic zone. I knew we had found a bargain.
Some automakers have discontinued stair-step incentives at the insistence of dealers. But there are slew of other ways to make sure you snare the best possible deal on a car.
1. Shop at large dealerships
Leave behind the adage that puny dealerships will give you better deals. Large dealers can stir hundreds of cars every month, so they can likely afford to sell at least a few cars for less than the invoice price.
Reminisce, some automakers still suggest stair-step awards to dealers. And even if they don`t, they may suggest other incentives for meeting sales targets or moving specific models.
Two. Permit dealers to contest for your sale
There`s no need to drive all over town and haggle. Once you have made a list of the models you want to consider, simply go to the automakers` websites. Use the «find a dealer» implement and permit dealers to contact you. I did that when we bought a Mini and had dealers vying for my business. Don`t bashful away from letting dealers know you are talking to others. That puts you in a position of power.
One peak: Make sure you get an «out-the-door» price that includes all taxes, fees and extras. You don`t want to bank on an ultra-low price only to detect you also have to pay for numerous extras.
If you need a car loan, don`t leave behind to shop for the best deal on that as well. You can embark by comparing car loans in our Solutions Center.
Three. Be pleasant
Do you want to work with someone who is unpleasant or hostile? Neither do car salespeople.
Yes, they want to sell cars for as much money as possible. They know you want to pay as little as possible. But if your salesperson likes you, they may well point you to models that better suit your needs and save you money. They may also sway their sales managers to give you some extras or even a price break.
Four. Recall, loyalty pays off
If you or a friend has worked with a specific salesperson in the past, email him or her directly when you are in the market for a fresh car. Salespeople who have established client bases are valuable to dealerships. They will work hard to win you a good deal because that increases their professional value.
Five. Consider a soon-to-be-discontinued model
I wished a two-seater sports car, but I didn`t want to pay a premium price. So when I went shopping for a Mini, I considered models that I knew dealers were anxious to budge. I ended up with a Mini Cooper Roadster. I knew the model would be discontinued soon.
6. Don`t negotiate on dealer holdbacks
Car pricing is more complicated than many buyers realize. Auto manufacturers build in what are known as «dealer holdbacks,» which give dealers pricing leeway. Again, the amount varies, but holdbacks basically give dealers the capability to price some cars below the invoice price and still make a profit.
Holdbacks are something akin to sacred ground for car dealers, however, with most dealers unwilling to share them with buyers, Edmunds says. Don`t even attempt to negotiate into the holdback.
Do you have secrets for getting a deal on a fresh car or truck? Share with us in comments below or on our Facebook page.
It’s Not The Usual Blah, Blah, Blah
Join our 359,761 free newsletter subscribers building wealth and ruining debt:
Get rich quick one day at a time
Sign up for our free newsletter for ways to make, save, and grow your money daily:
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