I have been involved in the car industry for numerous years from a variety of different angles. I have been in sales, I have been a supplier, worked in finance, and have essentially seen and done all of the major aspects of the business. What this means to you is that I know how each aspect of the business makes money and how they do it without you even realizing what is happening. When you walk onto a car lot you essentially start a process that by the end will have brought into play numerous parties with a variety of different interests. You have your salesman, you have your warranty/protection salesman, you have your sales manager, finance manager, etc. By the time you get through all of these people you could find yourself paying upwards of $10K more for a vehicle than you realized. First things First The first aspect of the car deal is the negotiation. You already have the vehicle selected, you know the color you want, and you are ready to buy it and start the process of negotiating. In this situation there are several different scenarios, Buying with cash no trade, cash with trade, loan with trade, loan without trade. Each one of these scenarios can change things significantly for you. ALWAYS start negotiation first with the purchase vehicle and worry about your trade later. This gives you more ammunition to get a better deal. Now, keep in mind that an average vehicle has a 4-5% margin. They used to have 10% so even though you got thousands off your vehicle several years ago, it is no longer possible, there just isn’t that much to play with anymore. To keep the negotiation simple and easy tell them you are willing to pay $500 over invoice. This will require the sales manager to come out with an invoice and make you an offer. They aren’t going to go any lower than this, and hold your ground because they will attempt to get more out of you. Make sure you know about the rebates FIRST. Once you negotiate the price down to invoice plus $500, now remove the rebates and you have your price. That is an excellent price. New vehicles don’t have that much margin anymore, so don’t be suprised if the price isn’t all that much lower than what is marked. If you are using a trade, ALWAYS get DEALER TRADE IN value from Kelly Blue Book or kbb.com. When you do this, you can walk into the dealership and demand that price minus $100-250. You will never get that price and if you do it will kill the price you are getting on the vehicle. Now that introduce your trade, and demand Category:Home › Autos • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 2 • You should never use after-market auto parts when maintaining or fixing your car • Should a new car be rust-proofed? • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 1 • Five safest cars in North America • How to ensure your teen drives safely after getting a license • Pros and cons of using an hydrogen generator for your car • DIY automotive maintenance: How to change the oil
