HOW TO NEGOTIATE MSRP?

[DIYcredit]

     Hi,
       I'm trying to figure out the cut off on the MSRP on a new car so I could negotiate a better price.For example in the end of 2008 I purchased a 2009 Honda Civic Ex.The MSRP was about $20,000. I negotiated it down to $19,000 and then finally $18,700 with no destination fee and 3.5 apr.,60 months.The salesman was quick to make the deal after talking to his sales manager of course.I went to two other dealerships beforehand .For the same car the saleswomen told me for the same car would cost about $19,500.I was'nt ready to talk figures,so I left.The last dealership was a nightmare the salesman asked me if I went to any other places I said no.He gave me a price of $19,500.So I told him where I went and told him the price of $19,000 (I made it up) he got angry and matched the price and told me take it or leave it.So he called me a liar,so I got up and left.

 I'm thinking that maybe I could've negotiated the price closer down closer to $18,000.For example I could've offered him &18,000 and then he would  offer me a price no matter what he said my next offer would be &18,100.At that point he's trying to figure out the highest amount i would pay.I'm thinking from these figures the amount he could loose is $2000 by settling at $18,000. (cut off)

Next year I will be purchasing a Honda Accord Certified Pre Owned Vehicle.I am thinking if the cut off for a New Honda Accord is (for example) $22,000 and they would never sell it below $20,000.For CPOV Sticker Price (for example) $17,000 .Would that make my first offer $14,000? Would the cut off be now $3000? I think a CPOV is just a used vehicle it's not new.

    Thanks,

             DIYcredit

[Anonymous]

Well, I would suggest doing some research first in regards to average selling prices for the model and year desired.  There are a lot of web tools you can use to see what the typical price is for your region, including Kelly Blue Book, Truecar, etc.  Just google and I'm sure there are a lot more.

I would also search inventory of similar cars using Carmax, Autonation, Autotrader, etc.

You can kind of get a good idea of what a reasonable price is.

With that information in mind, you can start the negotiating process.  I think the most important aspect in negotating, regardless of how you may feel about car salesman, is to not be rude, be polite, but persistant.  And above all else, try to be reasonable at least or have reasonable expectations. 

I'm sure the sales staff will do the, good guy, bad guy, or I need to check with my manager, etc., that's fine, let them go through their dog and pony show, but the most important aspect is that you are prepared to walk away and search elsewhere.  Once they know that, they may offer better deals to keep you in that seat.  And of course, don't be shy of walking away, but again, do so nicely and I'm sure they will appreciate that.

Mention to them upfront that you researched selling prices of similar-model cars in the area.  That you've seen such and such at this place on sale for this or that.  It might help create a good starting point that they may want to beat.  But be honest, as I'm sure they can easily check and see for themselves if it is true.  Once they know you're lying to them, it kind of gives them moral justification to lie right back at you (read an article about this).

In any case, do your homework, be polite, be honest, be prepared to walk and good luck.

[Luscher]

Look up invoice price and aim towards that number. That is the number the dealer supposedly paid for the car but sometimes there are dealer incentives on the car and they pay even less. Don't ever pay msrp

[bigpoppa09]

Like others have said do your homework  take me for example  i know which model i want i will be buying in May. the only thing im dwelling on now is do i want a low milage 14,15  the first thing i do is go to Kelly blue Book  and Nada  and look at  blue book value AKA market value. because most dealers  overprice cars.  and never negotiate a payment  negotiate a price because if u go for payment a dealer has the upperhand then and i would look at the 2015 models its a new year. and dealers will be more motivated to move the 2015 inventory to make room for the 2016s. and they should have good deals on them.

[Appleman]

I will echo what the other members have said, research, research research. Personally I have had good luck with Cargurus.com, Trueprice, Carmax and KBB. Look at all four of them, print the prices out and take them along with you when looking at the car you want to purchase. Also, get pre-approved for the auto loan for the amount you are willing to spend. Armed with current market research in your hand (I take a legal pad or notebook with all of my information), let the salesman know on the test drive you already have your financing (I do not recommend trying to bluff on this point nor let them know your rate and terms). I honestly let the salesman know I am ready to buy today but I have to get a price that works for me.

Because you did your research you will know if they offer you a 'fair' number. Chance are they will still have room to negotiate and will likely boast they can also beat your finance rate. This is the first time I supply them with a number I am willing to pay. You can certainly try to get aggresive and see if they will give you a great deal but if you are nowhere close they may let you leave. If they let you walk, they are sure they can sell that car all day long for more money. For me there is a balance between price paid and spending all day in negotiations.

 Good luck and let us know how things work out. 

[Creditaddict]

TrueCar HANDS DOWN... because you can get dealers competing with the EXACT options you want so you are not getting a price on a car that isn't even available and then all of a sudden the price goes up when you pick out something with more options and you can get numbers for the exact features you want with exact cars on the dealers lots at the time!

[Dj4Money]

 Fighting Chance gives you a complete break down of invoice prices.

 Truecar works decently, they key is getting dealers to compete if two or three have the car you want. 

 That is the key anyway to get quotes from dealers in your area. But also be willing to travel outside your area.

 I saved $2,000 on my Hyundai Accent (MSRP $17,295) which was $15,295.

 I got that based on what others were paying on the one of the Hyundai Forums.

[DIYcredit]

  Thanks everyone for your great advice.I think that Truecar,Edmonds and getting the package from Fighting Chance generally involves getting the invoice price for new vehicles and negotiate based on the information without forgetting that they make money either way from your trade in,factory incentives etc..I think the difference between invoice price and MSRP is generally about $2000(from my research online this is the consensus)I think tI will be purchasing a Honda Certified Pre Owned Vehicle.I will make my first offer by low balling them but I will know will know what my limit is meaning the most I will pay for this car.I will negotiate the from MSRP and never talk about monthly payment amount until be agree on a price.

    Thanks,

          DIYcredit

[Creditaddict]

Used is 100% different than new if you ask me.

[Dj4Money]

  Get new, why?

  Dealers are trying to generate maximum profit from used cars not new ones. New cars they get incentives you don't see and have to pay taxes on the inventory. In other words they are more willing to make a deal even a deal that will lose them money on a new car.

  CPO's are popular with dealers because they get to sell a car twice. Once as a new car usually via a lease so they know the maintenance on the car, they make money on the lease itself and from OEM/captive lender kick backs.

 Then they sell the car as a CPO to get you to pay more for the car because it was well taken care of usually by that dealer.

  You'll get a good price on the CPO because it's already has it's deprecation built-into the price and you get a good warranty. But your up front cost will be more, usually on the interest rate.

 Promotional rates like 0% for 75 months (Chrysler) is only available on New Cars in-stock.

 The only way to get a good price on either a new or CPO CRV is to pit dealers against each other. But truthfully, the Ford Escape has way more get up and go. It's also more fun to drive because of that trust you get from the Ecoboost. 

 I know you can get a Escape SE 2WD 2.0L for 0% for 60 months + $1,000 rebate. 

 CRV is the best selling small SUV (Escape is number 2)