You’re on the lookout for your next car? That’s exciting news! What isn’t as exciting is the prospect of haggling with a dealer to talk them down from the exorbitant quote they’ve just given you. Fear not.
In this article, we reveal 5 successful strategies you can use to beat the dealer at their own game. We talk about how the price of your new car in Canada doesn’t have to be at the whim of the dealer.
For instance, if you’re in the market for a Subaru Forester, a new price report will help you avoid paying the full MSRP and give you amazing incentives!
Without further ado, let’s explore the 5 tactics that will get you a new ride without breaking the bank.
- Stick to Your Target Figure
Make it clear to the dealer that you will only sign the paperwork when they agree to match the price you have in mind. Of course, they’ll try to counter your offer. Stay firm and politely decline. Leave them with your phone number, and if the price you’ve quoted is reasonable, chances are they’ll call you back within the next couple of days.
- Know When to Follow Up
Auto gurus have suggested it’s best to follow up on Saturday or Sunday an hour before the dealership closes.
Always call and ask to speak to the same point-of-contact person you negotiated with before. Reiterate that you aren’t willing to go above your quote, and if they’re having a not-so-lucrative weekend, they just might acquiesce!
Salespeople are under more pressure to make one more sale before the month closes, hence it’s always a good idea to follow up at the end of the month. A deal that they refused on the 26th of the month might suddenly make sense to them on the 30th.
- What NOT to Say
“I really love this car”
“I don’t know much about cars”
“I’ve made up my mind to purchase a car today”
While all of the above may be true, there’s no need to volunteer this information to the dealer. The dealer psychologically profiles every person that walks in. Knowing that you’re already emotionally invested in a car, they might just play to that and use any and all tactics to complete the sale. Make sure you hold the cards and don’t relinquish that edge to the salesperson.
- Don’t Be Afraid to Walk Away
Walking away does not equate to defeat. Sometimes, leaving the dealer with a quote to mull over is a great thing. If you eagerly accept the first quote they give you, chances are you’ll get taken for a ride. From there, it’s only a matter of time before the dealer heaps additional fees onto you (VIN etching, rust protection) that you don’t really need. Again, if the dealer is not meeting you halfway, hit the road.
- Get a Free Dealer Invoice Report
None of the above really stands for much if you don’t have a dealer invoice report to turn to.
Your report will reveal;
- MSRP (Manufacturer’s Suggested Retail Price – what the dealer paid to own the car)
- Factory incentives
- Lease and finance rates
- Recommended dealerships
- Vehicle pricing options
- Comparable vehicles
A majority of dealers turn a profit of 8.7% on selling a new car. When you’re aware of the true MSRP, you can follow the 3-5% rule – meaning you can add about 3-5% on the invoice figure in your report to calculate the most lucrative negotiation price.
It’s simple! Choose your make and model and see a complete breakdown of all fees.