For the best deal you need to do this:

[jamie123]

Back in 2008 I worked as a new/used car salesman for 6 months. Yes, I was a highly trained shark! I was really good at it!

If you want the best deal this is what you need to do:

Research the EXACT car make model and trim level you want to purchace. Edmunds.com is a great place to do this. Research the forums on that website. People from around the country post exactly what their deal cost them for specific make, model and trim level.

Go to your local bank or CU and get pre-approved for the amount your car will cost and find out what interest rate they will charge you. Credit unions have much better interest rates than banks, use them.

Go back to edmunds.com and build your car again. They will ask if you want quotes for this car from local dealers, say yes. Pick 2 dealers and play them against each other. From your prior reseach on edmunds you will have a very close ballpark figure you need to get them down to.

They will ask if you plan on financing this deal, say "Yes, I am already approved by XXX credit union at X.X interest rate. If you can beat their rate I will go with you though."

They may or may not be able to beat the interest rate. Dealers give the lowest prices through the INTERNET.

This method ties the dealer's hand behind their back. They can't use their army of smooth talking salesmen and misdirection to boost the price.

Most people negotiate 1 car deal a year. As a highly trained salesman, I negotiated at LEAST 3 deals a day. You don't have a chance. The dealership ALWAYS makes money.

Any questions?

[jamie123]

Okay...I'm still here.

I can't believe that nobody has asked any questions yet.

Here's some more interesting facts.

My job description: Make sure that anyone that walks through the front door drives home in a different vehicle!

Sold a car to someone that didn't have a driver's license! I had to drive the car home for them.

[Revelate]

It's not that you don't provide good information, it's that much is known by the regular forum goers.  I'll point out though that's a very large generalization regarding the skill gap between buyer and dealer sales, some folks negotiate just fine and dealers aren't always in a position of strength with the way the auto industry is setup.

A question though, people really negotiate (buy or lease) a car a year?  That's a statistical average or the 3rd standard deviation population?

[jamie123]

Car dealers have been selling cars for a long time. They have it down to a science.

Every single person that stops in to look at a car WANTS THAT CAR.

People put up obstacles or reasons why they shouldn't buy that car. It was my job as a salesman to overcome those obstacles whatever they may be.

How about this....

Anyone ever tried it?

Husband and wife don't go shopping together, that way the other spouse is missing in action to sign or approve the purchase.

(On a test drive with the wife.)

Me: Well, how do you like the car?

Wife: Oh, Its great!

Me: When we get back to the dealership I'll work you up a price.

Wife: Oh I can't do that. My husband is not here.

Me: Where is he?

Wife: He stayed at home to watch the football game.

Me: Well let's go. Just drive home and we will give him a test drive to see what he thinks.

Did the test drive with the husband.

He liked it.

Sold!

[jamie123]

Revalate,

Sorry I was writing my previous post when you posted.

I was just trying to get the point across that I would negotiate 18 deals in a week. At 1 negotiation a year, I was being generous to most auto buyers. It is probably closer to 1 negotiation every 3 years.

Some people are great negotiators, but most are not. One customer comes to mind. Started negotiations at Saturday 3PM. Negotiated until 9PM Saturday. (Dealership closed at 8PM) They came back Sunday and we negotiated from 12 noon until 3PM when we finally came to a deal. They probably could have received the same deal over the internet in a few e-mails.

Just so you know....I was personally out of the deal in the first half hour. What I mean is my commission was given away in the first half hour but I had to keep the negotiations going until we had a deal. I made my guaranteed commission, $100 plus minimum wage for all that time. The dealer still made money, they NEVER lose money.

[jamie123]

Here's a really great tip.

I live in Florida which has a lot of snowbirds and some people with A LOT of cash.

There were a few people that would arrive in Florida at the end of September and buy a brand new car. Before they left Florida at the end of April they would sell their car back to the dealership with only about 8000 miles on them. They figured that it was cheaper than renting a car or keeping a car down here while they were away.

Okay...I really didn't want to say this, but I sold Hondas.

The standard Honda warranty is 36mo/36k. We would resell these cars as certified pre-owned with 8000 miles BUT NOW THE CAR HAS A 10 YEAR or 100,000 MILE warranty from Honda.

If you find one of these, it REALLY is a GREAT deal.

[Revelate]

Ah, I see your point now, I just consider dealers to be providing a service and in a capitalist market, they should be making some money on the deal anyway.

Thanks for the clarification.

[jamie123]

Okay...I told you about the $100 plus minimum wage I made on the one car deal that took 9 hours.

Another deal...

Couple comes in wanting a minivan.

Test drive.

They load it up with accessories. (Roof rack, child protective seat covers, trunk mat, etc.)

Remember this was 2008. Gas prices were just hitting $4.00 a gallon. Minivans were'nt selling.

Honda had just put out $8,200 in dealer cash to get rid of minivans.

They signed the deal at full sticker price, never asking for a discount.

The dealer profit on that deal was $10,000.

Only took me about 3 hours of work.

[jamie123]

Working at a auto dealership was capitalism at its best!

IF I CAN GET ONE THOUGHT THROUGH TO EVERYONE IT SHOULD BE THIS:

Hold on to your pocketbook whenever you enter a dealership!

I witnessed this really GREAT auto sales technician get fired. She was a middle aged woman that really knew her stuff. She was one of those people you talked with when you dropped your car off for service or warranty repairs. She had this GREAT repore with women that would bring their cars in for service. The dealership wanted her to up-sell her clients on un-needed service and she refused. She got fired!

When you take your car in for service it is mandatory for service sales techs to recommend service you really don't need. Read your owners manual and follow those instructions for your maintenance requirements. Everything a dealership does is there to make money.

[jamie123]

I'm really sorry if it sounds like I have such a hard atitude towards auto dealers but I have witnessed them rip people off for as much as they could get, repeatedly.

I fielded one phone call from a woman that was crying hysterically. She wanted to know if we would buy her minivan back from her. We did''t sell it to her, some other dealership sold it to her. She was royally ripped-off by that dealer. She was crying and wondering how she was going to put food on her table for her children with this ENORMOUS car payment.

I quit selling cars shortly after this.

The hours sucked. I did however find out just what capitalism is all about. I didn't really like what I found.