No Haggle Price - Is there a trick to getting a good deal on a car?

[vada61]

When you want to buy a car, of course you want a good deal, but how do you go about it when so many of the dealerships now do the "No Haggle Price"? Is negotiating interest rates your only option in getting a good deal anymore or is there a way around the "no haggle" issue. It seems to me that most of the dealerships are now doing this and some of these prices on the cars are not good deals by any means.

[Kree]

If you qualify I would recommend using USAA's car buying service, it offers no haggle prices drastically lower than what you find on the open market. I once got a 16k car for 12800 with taxes and everything included. 2-3 years later carmax was selling the exact same car used for more than I paid originally.

I believe Cap1 also offers similar no haggle pricing through their service.

If you are sticking with the dealer route and don't like the prices you see, I would send them an email "I want this at this price."  When they respond with "we don't haggle" you can respond with "Then send me an email when you drop the prices."  It is a waiting game, but they drop prices when they need sales, so knowing you are a guarranteed sale at X price will have them stay in touch.

You can also buy further away. There are plenty of dealerships running the old model. If you don't have one close to you, consider a weekend trip to the next town over.

[iced]

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@vada61 wrote:

When you want to buy a car, of course you want a good deal, but how do you go about it when so many of the dealerships now do the "No Haggle Price"? Is negotiating interest rates your only option in getting a good deal anymore or is there a way around the "no haggle" issue. It seems to me that most of the dealerships are now doing this and some of these prices on the cars are not good deals by any means.

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If we're talking used cars here, I have had the most success coming to the dealer from a position of independence and knowledge.

I search inventories of dealers within a 500 mile radius and compare prices among similar model/packaged cars. If financing, have an approval in hand before walking in to the dealership, though it's best to go in with the ability to pay cash. By doing this, I've removed the two largest pieces of leverage salesmen have from the table. They can't convince me a car is worth more than it is because I know what other dealers are selling it for, and I'm not a captive customer because cash means I can just walk and give my money to the dealer who is willing to play under my rules. I then give them my "no haggle" price I'm willing to pay, let the guy go back and do the usual "talk to my manager" schtick, and if they come back within a few hundred dollars, game on. If they don't, I thank them for their time and leave.

If we're talking new cars, the price is more or less set by the manufacturer, at least with the makes I've bought new. In those cases, I'm going to the dealership with my list of features/colors/etc for a custom build rather than picking a model off the lot. Some makers will give a discount for European Delivery, which amounts to several thousand off, particularly if you're happy and/or planning to travel to Europe anyway. If you're happy with one of the new models already in stock, you can apply the same technique for used cars, though you might not find as much variance in pricing.

[Anonymous]

The truth is in most large dealerships the internet price on used vehicles is pretty competitive in larger markets. They have to be. Customers are already price shopping us before the drive into the lot.

We try and target a $700 to $1500 profit on most used cars on the front end. If it is a scarce unit we can sometimes get more. But the margins are pretty slim. I had a customer come in and demand a $4000 discount from my internet price on a used SUV that was already priced at 94% of the market, meaning we were second lowest price vehicle in 100 miles and valued ranked number one.

He was offended when we wouldn't budge. As he was telling me and my sales team I'd be calling him to sell it later at his price another customer came in on that same vehicle and bought an hour and a half later.

So for all of those who think there is endless amounts of money to discount on used vehicles, there isn't. New vehicles however, if you do your research you should know what to pay with all the tools out there.

And yes bring your own financing.

[Anonymous]

Trying purchasing a vehicle at EOM.

[Anonymous]

Duplicate

[marty56]

O/T someimes who you finance with can get you some perks like free schedule service or even a credit card with a local CU if you finance with them so there are deals beyond the price to get.

[Appleman]

The TrueCar service is used at USAA, Sam's Club, Allstate, Farmer's, PenFed, AMEX and Geico. I am glad that Kree had good success with USAA, but I would caution you to not stop investigating with the price you receive. Remember, that is a service the dealer pays for and they will re-coop their money. 

That being said, when you are ready to buy fill out the information for one of the sites such as USAA. Be prepared for your phone to start ringing asking you to come in for a test drive. 

Everything is negotiable when buying a car, much depends on your tolerance for the process. I have a relative that will take an entire day to buy a car and generally ruin the sales guys day. It is not worth it to me to spend countless hours negotiating.

Some of the basic tips:

1. Obtain your own financing

2. Research; KBB, Car Gurus, TruPrice, Carmax etc. Join an enthusiast forum and ask what people have recently paid. Have print outs of all of your information including inventory at other dealers.

3. If trading in your car get a FREE buy offer from CarMax. This will set the low bar for trade value. Many ways to go with a trade.

4. Never be afraid to walk away if the deal does not fit your needs. There is no buyer's remorse cooling off period once you sign on the dotted line.

Good luck!

[OmarR]

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@Appleman wrote:

There is no buyer's remorse cooling off period once you sign on the dotted line.

Good luck!

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Typically, yes, but there are exceptions depending on your local laws.

For example, in Indiana, if business is conducted off-site, i.e. a dealer/broker delivers the car to you at your home or YOUR place of business and that is where all the paperwork is signed, by law a 3-day cooling off period is enacted.

People (in my state) use this all the time on door-to-door salesmen when the buyer gets buyer's remorse.

[vada61]

Thanks...all good info...and I might add-I stopped at a dealership and asked about a vehicle and it didn't have all the options I wanted and we talked a little and I said I would be in contact later about maybe checking out other vehicles. I have a msg on my answering from the car salesman before I got home. I knew I would get calls but I didn't expect it that soon.