We just purchased a car. The process was long and painful. I wanted to create a list of best practices or learnings…mostly for my benefit to avoid mistakes down the road. These are just my thoughts, not based on research or facts.
1. Build a relationship with one salesperson. – When you walk in a dealer for the first time, a salesperson will approach you. This is your person and you should only work with this person the whole time. If you need to make a second or third visit, call first to make sure that he/she is available. If you can’t trust the salesperson or don’t like working with them…walk away. There are plenty of fish in the sea and you need to find a salesperson that is easy to work with.
2. The Sales Manager makes the decisions. – The salesperson who you are working with doesn’t have control over the price. They might not even know what offers will be accepted on the vehicles. The sales manager holds the data and is responsible for the decision making. Don’t waste time negotiating with the salesperson…instead, give them your Out the Door price (see next item), and let them present it to the sales manager.
3. Have an Out the Door Price in Mind. – Establish a budget and negotiate a price “Out the Door”. This includes all taxes and fees. Find cars that are priced higher but in the ballpark of your price. They will never lose money on the deal, your goal is to have them accept the lowest possible price.
4. Ideal Conditions for a Private Sale. – If you want to buy a car in a private sale…aka: from dude on Craigslist. Gain a clear understanding of why they are selling. The best reason is due to a move out of the country, etc. Again, you need to trust the person.
5. Follow Instincts. – This works for me, but maybe not for all people. Trust the feeling you get about the car and the deal. If you don’t like it, walk away.
6. Walk Away. – Always be willing to walk away. If you find a pushy salesperson, you will need to walk away. It may be awkward, they want you to stay until you say yes…often they will not let you leave in a socially acceptable manner. You can just say “thank you” and then leave. You have the money and control. You can’t fall in love with the car until the deal is signed. If you catch the salesperson in a lie, walk away immediately. If they pull high pressure sales tactics, walk away…the car will be there tomorrow. If you come back, come back in a casual way. Never show too much interest in a car. If they know you will buy, they no longer need to give you the best price.
7. You are buying a car, not making friends. – The salesperson is not your friend. They want to close the deal and earn your business. I don’t have a lot of trust in what salespeople tell me. I also don’t trust any information being shown to me at a dealership. This is probably a fault of mine…but again you need to trust your instincts.
8. Determine how you will use the car and then find cars to meet your needs. – This is surprisingly difficult for us. I think we know what we want, but then try to convince ourselves that we should buy a cheaper or sub-optimal car. ie: We really want X…but couldn’t we get by with Z…plus it’s cheaper. It’s a wrestling match and usually I can’t pull the trigger on a sub-optimal solution…even if it has the right price.
9. Mention other deals and research on the fly. – If possible bring a smart phone with internet so that you can pull information on your phone from Edmunds, Kelly Blue Book and other sources. You can then use this info in your negotiations. Edmunds will show a lower price, so use that site when buying. Mention other cars that you are considering. Don’t be surprised when they tell you the other cars are not nice.
10. Explore all payment options. – Dealers have a variety of payment options and you need to explore everything to ensure that you’re making the best choice. In the end it won’t make much difference…and also in the end remember that it’s “just a car”.
I might add more items to this list…if you have any best practices that you’ve learned, I would be interested to hear them.
