negotiating used car price over email reddit

While most people go for the same brands and models that have good reputation – it might make sense to go for the cars that are not recommend by any guides, because you might get much more value for your money. When you consider that the average depreciation rate for new cars is 20 percent the first year and 15 percent after that, this same vehicle will lose another $13,734 in value over the life of the loan. Or it could be a nightmare car that they are trying to get rid of because it might fall apart at the next light. Before you make the purchase – refer to your state DMV website for exact instructions on what paperwork is required to transfer the ownership and to register the car. I am willing to pay this much, and this is why: …”. Let’s say the dealer has to take a car in trade. Long distance purchases: 99% it is not worth it. Overall it is a good idea, with a few exceptions and footnotes: If the car is still in warranty or is certified – inspection is an overkill, and the only thing you can get out of it is find out whether the car has been in an accident. So when you contact the dealer – your goal is to make sure that the car is actually still there, that it is ready and not still going through service or body work, to confirm options that are important to you, and to make a solid appointment. Or they might let you leave. Make sure that are no warning lights, everything works, and it drives well. He might hope for you to still buy it and to bring it to him for more work. It is a fully electric car. So if a model is unreliable – it will have a worse reputation, which will lower the going rate. Your last options is a private seller. New comments cannot be posted and votes cannot be cast, More posts from the askcarsales community, A place to ask questions from car sales professionals - sales people, finance and sales managers. You have no business going to a dealer without having an idea of what you want to buy. Private purchase: unless you have cash in hand – it will be difficult to put a purchase with financing. In the meantime – there could be a serious buyer with cash in hand on the lot. In the end market rate and your desire to own the car will determine what the price will be. Statistically about half of appointments show up, so dealers don’t put a lot of faith in them, and they might not even bother checking that the car and the sales person is ready and available – you want to make sure your appointment is different. Be ready to discuss financing, tell them how much down payment you have, fill out the credit application. Do you have to have a clear title? They might through numbers at you – don’t put much faith in them, they have no obligation in honoring them. Right now my favorite source is Autotrader – they provide a lot of tools that let you narrow your search down, and 99% of dealers list their inventory there. When you are there in person – check that you are looking at the actual car you saw on line – same VIN. You can then decide if you like that offer or want to keep car shopping. The more points you buy from them, the bigger the incentives and the lower the price per point. If they offer you a service contract – extended warranty – read through it. There is a saying in the car business when negotiating that the first one to speak loses after a proposal. If it isn’t, consider taking your business elsewhere. If you are to save a large sum of money – you will have to work for it, and a couple of hours is worth it even if you save only $500 of the sales price. If you want a more reliable car – you will have to pay more, and even then there is no guarantee that your specific car will be trouble-free. You should know what guides like KBB, Edmunds and NADA say a car like that should be priced. Another thing that you can’t usually negotiate is the lease-acquisition fee. You want to make sure that you are meeting with a specific sales person, and not just a generic appointment set by a call center agent, that you know who you are meeting, exact time, and that the car will be actually there. To negotiate successfully, you need to be educated about the process and how to get the best deal. More expensive (luxury and performance) brands and models will be more prone to problems, and they will cost more to fix, but they provide a better driving experience, safety and image, so you do get something for your money. CPO programs vary by brand, and they are not a 100% guarantee, but they should give you some assurance together with an extension of warranty. Then there is the used car lot. After you drove it – it is decision time. There is no secret list of good or bad used cars, because any car could be a good car FOR THE RIGHT PRICE. Out of state purchase creates issues with paperwork. What does this means to you as a shopper: Profit margins are lower, and there is much less room for negotiation. If it is not in writing – it is not real. I don't think that statement is entirely true. One of the best ways to make sure you don’t go over budget is to have a firm “out-the-door” price that includes the taxes, fees and any extra costs. I had made a post where you linked me to this post of yours in a comment, and just wanted to say thanks! Negotiating is an art. Buyers expect a lot of gear in a premium 4x4 dual-cab ute and the 2020 Isuzu D-MAX X-Terrain scores a bullseye for standard features.. Then there is another risk of dealing with a stranger and large amount of money. We have a saying: “If you bought a car “as is”, drove it off the lot, and it broke in two halves – you own both halves”. Also don't put all of your eggs in the CarFax basket. There is no Lemon Law in regards to used cars. Your APR will be determined based on your credit at the time of application. First they learned to check the market before pricing out a car and to keep adjusting pricing of unsold cars to match the market rate. The offers for financial products you see on our platform come from companies who pay us. The terminology used in the car-leasing process is different from the terminology involved in buying a car. Dealers started to realize that if their asking price is higher than average – phones don’t ring, and cars don’t sell. Read thoroughly to understand what comes with the car. If you are buying out of state – you will have to check both states to make sure you are in compliance. If a dealer doesn’t post a price – don’t bother. Oh, and I even got to use the classic car salesman line, "what do I have to do for you to put me this car today?" If it is not certified and out of warranty – does the dealer offers any kind of warranty? Also the system will check auction history, and it will show how much similar cars sold at dealer auctions in the last weeks, so the dealer can see how much they car hope to get at an auction or buy similar cars. We do everything we can to keep it real. This shows commitment, and it indicates to the sales person and their manager that they are close to selling something, it gets them involved in the process. Show time: you are sitting down against the sale person, and you get into the dreaded negotiation. You can take any car off the road, run it through an inspection, and the mechanic will recommend on average $1,500 in repairs, which you can ignore and still drive the car for a few good years. Lance Cothern is a freelance writer specializing in personal finance. If you are ready to own it – say so, and be ready to sit down to talk numbers. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. Confirm it one day before, and one hour before. This is exhaustive and extremely useful. If you can’t afford the asking price – you can’t afford it. Guides vary from one to another – how would you know which one is right? Bottom line – again, used car is a risk, and you have to decide what is the right balance of risk, and the price you are willing to pay. So if a model is unreliable – it will have a worse reputation, which will lower the going rate. But both were factors. You can use them to your advantage, but don’t get emotionally attached to what they say, because KBB is not going to sell you a car or buy one from you. Be sure you negotiate based on SALES PRICE not payment. They might not want to take the car off the lot for half a day for you to decide not to buy it or to come back with unreasonable offers. Dealers simply can’t afford pricing cars high, hoping that someone will just bump into it and pay the price. When you lease a car, you’re typically allowed to drive a certain number of miles throughout the course of your lease term. With a few exceptions – it really doesn’t matter what car you buy. Reasons like that mean nothing, they just show you as an inexperienced negotiator, and they annoy the dealer. Thank you. Compensation may factor into how and where products appear on our platform (and in what order). Now, about guides: they are just that – guides. Going up on your offer shows good faith, and it lets the dealer feel like they are winning. Please note that verified professionals will have flair, take advice from non-flaired users with discretion. All Rights Reserved. Have your car checked out by a mechanic and check it yourself. Or it could be a nightmare car that they are trying to get rid of because it might fall apart at the next light. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. Again, the dealer will be unlikely to go through the problem with a bad car that can come back to haunt them with issues. 1. Some dealers don’t allow pre-inspections at all. The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials. Some cars will sell well below the guides value because of market conditions, some will sell for much more, because it is a unique car, desirable configuration or low mileage. Your best chance on getting a lower price is in person, once you saw the car and ready to buy it. He just couldn't start talking to her now when we were negotiating. Know the terminology. Now, what can an inspection tell you, and how you should take it? Buying based on payment means the dealer is going to adjust the costs (in their favor) to hit your desired payment and that might mean paying more for the car. It may be cheaper to pay for more miles now than pay the per-mile fee later. Look for manufacturer incentives and advertised specials as a starting point for your negotiations. Other dealers may mark up the rent charge to improve profit. The only thing a guide will really determine is the amount you can finance, because a bank will not lend you more than a specific percentage of the “book value”. Don’t expect the seller to accept anything other than cash or a cashiers check. If the dealer priced the car right – he doesn’t have to commit to a lower price over the phone or email, because it is obvious that you are already interested, and they definitely have no interest in taking the car off the market on the off chance that you will actually show up, agree to the car and buy it. The data is out there, all the software does is put it together. Politely explain that this is more that you think you should pay or can afford, tell them to contact you if they change their mind, and leave. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. Don’t be surprised of a dealer refuses to let you inspect a car like that. A private seller is a gamble. Great info. It's pretty simple, actually. You have to get a general approval, then you will have to get the actual loan for the actual car, and the bank will decide the amount based on the book value of the car, you will have to coordinate this with the seller and the bank, and until the seller gets paid – he can back out of it at any time, and you are back to the start. Make sure you look into the typical sales price for the cars you want. Look them in the eyes. In those cases (car freshly listed) it's actually a good idea to contact the dealership. How to shop for a used car. Destination fee, handling fee, reconditioning fee, CPO fee – all of these are tricks, signs that you should not even be dealing with the dealer, let alone pay them. They might catch you at the door, out on the parking lot, or call you an hour or a day later. If you’re open to leasing more than one specific make or model, you can take advantage of these opportunities to potentially score a sweet deal on your lease. Only mortgage activity by Credit Karma Mortgage, LLC., dba Credit Karma is licensed by the State of New York. It takes a lot of time, and used car shoppers don’t have a lot of time to spare. Research what the vehicle actually costs the dealer through a site like Consumer Reports to get a better idea for a potential price range. It doesn’t matter if your cousin has one like that. Although you aren’t buying a new car, you can negotiate the price of the car just the same. You don’t have any leverage in negotiation, because when you contact the dealer from 500 miles away – it tells the dealer that one of two things is happening: they either have the cheapest car within 1,000 miles, or they have the only car within 1,000 miles that you want. Finally, remember that you are buying a used car to save money, but there is a reason it is cheaper than a new car. Some factors of a lease typically aren’t negotiable. It could be a nice car that the owner is trying to maximize the value by selling it themselves instead of trading it at the dealer. This is also known as a capital cost reduction. Also, I think you should note that most dealers want the customer to make the first offer so plan on doing that. This means that this will be a grind, and the dealer is stuck in the eighties. There should not be any requirements for rebates to qualify for, the Internet price should not be “after X amount down”, or any other conditions to get the advertised price. If you have specific questions about the accessibility of this site, or need assistance with using this site, contact us. Dealers that use these tricks will not learn unless enough people will stop giving them their money. They use it when they take cars in trade or buy them at auctions, when they price cars, when they adjust prices to move aged inventory. Your offer should be reasonable, but with some margin built in to give up. There are only two valid reasons to why you are offering less: You either have research to show why the car should be sold for less (market rate, cheaper similar car being sold nearby, lower book value), or this is simply what you can afford. You should know the advertised price of the car the day you shop for it, get it off the dealer’s website, print it out. Some sites/dealers when they FIRST get a car in don't put the price in to their vehicle management software because they haven't done a cost on it but still want it listed. Make sure that you are looking at cars that are within your budget, and not hope to negotiate a lower price before you even look at the car. This site may be compensated through third party advertisers. It’s a good idea to shop around at multiple car dealerships, compare prices and deals on the car you want to lease. You could use a guide like Kelley Blue Book to gage whether the price was good or not, but in the end – you had to make a decision to buy there or to move to the next dealer, and if other dealers would not work out – by the time you got back the car could be sold. Doc Fee is standard even on most used cars. When you’re ready to negotiate, there are certain common items you should consider up for discussion on your lease. The system pull available matching inventory listed within 200 miles, calculates average and median price, calculates back how much the dealer has to pay for the car so that after reconditioning and assumed profit – they can price it below market average. But should you consider leasing a car — or buying one? It is not enough if you drove one at another dealership – drive the car you are considering buying. Even behind the most reliable brand dealership there is a service department, and they do stay busy. The terminology used in the car-leasing process is different from the terminology involved in buying a car. Test-drive it. Before heading to the dealership, it’s good to research any lease deals that may be available for the models you’re interested in. 4 tips for negotiating the best price on a car lease. You can calculate your annual percentage rate, or APR, by dividing the rent charge by 2,400. It is. There is no secret list of good or bad used cars, because any car could be a good car FOR THE RIGHT PRICE. Is there any kind of return policy? Editorial Note: Credit Karma receives compensation from third-party advertisers, but that doesn’t affect. If you finance $25,000 for four years at 6.9 percent APR, you'll pay $3,680 in interest over the life of the car loan. Credit Karma Offers, Inc. NMLS ID# 1628077 | Licenses | NMLS Consumer Access, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Image: Couple looking at new car brochure and thinking about how to negotiate a car lease. The reason the electric car is so much cheaper to run than a petrol car […] If you have a tendency to look away when people look you in the eye you better get over it. The Equifax logo is a registered trademark owned by Equifax in the United States and other countries. You may also be able to reduce this charge by applying a down payment or trade-in vehicle as part of the deal. The more nights you commit to buy every year, the cheaper the price. Then how can you tell what issues are normal and are to be expected in a used car? Used car lots buy out these cars, patch them up, and sell them for as much as they can. Same something in the lines of: “I am ready to buy this car now, but the price is too high. Pre-purchase inspection: it is a common advice to have any used car pre-inspected by an independent mechanic. Once you decide on the model and brand – browse online listings. It might be harder than it sounds, you might have to have to talk to a manager, but you just have to stay calm, don’t get baited by promises of some incredible deal, and repeat that you are not ready to own this car at any price. His work has appeared on Business Insider, USA Today.com and his website, Image: Couple on train using smartphone, looking up the best car buying apps, Image: Young couple at car dealership looking at new car together, Image: Young woman with pink dreadlocks sitting in trunk of car, Image: Young couple at car dealership discussing dealer fees with sales person, Image: Man smiling at a car dealership, somebody is handing over car keys to him, should you consider leasing a car — or buying one. Next evolution was introduction of software services that do that for dealers. It would be nice to be able to continue shopping and negotiating from your couch, get the best price, have the dealer tell you everything about the car and hold it until you will make up your mind and find time to go and buy it – but in reality things are a bit more complicated. Whether you are just starting out in the car business or if you have been around since the good old days these are the 10 things a car salesman should know.Things have been changing in the car business very rapidly over the past few years, but these remain to hold true and probably will as … Think about these things when you are making decisions and browsing for cars – it might make sense to pay more now to avoid paying later, and it might make sense to pay for a peace of mind. Credit Karma Mortgage, Inc. NMLS ID# 1588622 |Â, Credit Karma Offers, Inc. NMLS ID# 1628077 |Â. App Store is a service mark of Apple Inc. Bring back /u/chooter, Press J to jump to the feed. Most dealers will post photos, videos, car history reports, but in the end you will have to do your due diligence in person – check out the car and drive it. The stories are real, the cars are real, and it’s the reason it takes so long to do the episodes,” explains Kevin Mack from the popular TV show, Counting Cars, according to Apex Automag.Kevin Met Danny 23 years ago while riding motorcycles. Always be ready to walk away if you don’t find a deal that you can afford. The capitalized cost, sometimes called cap cost, is a good place to start negotiating. I agree where I am from it is actually harder for us independent dealers to get cars registered so that's why we charge the Doc Fee. Once you found one or a few potential cars that match your requirements and price – you are ready to contact the dealer. Example - Riviera now costs over $200 per point if you buy a small contract from Disney direct. Auto, homeowners, and renters insurance services offered through Credit Karma Insurance Services, LLC (dba Karma Insurance Services, LLC; CA resident license #0172748). I might go through the motions of working out the paperwork to ship you the car out of state, but if a local customer shows up ready to take delivery – you best believe I will rather sell the car to him. If it is a CPO – make sure you have proof the car is certified. Most brands will post conditions of their CPO programs on their website. Credit Karma® is a registered trademark of Credit Karma, LLC. With a few exceptions – it really doesn’t matter what car you buy. This is why dealers charge more, and now we will talk about buying a car from a dealer. If you anticipate driving more than that, negotiate extra mileage upfront. A pre-inspection is not a guarantee. You can try to make dealers compete for your business by shopping your best offer around to see if another dealership can beat it. Dealers adjust pricing all the time, so if a car sat on a lot for a long time – it doesn’t matter much, as long as it is priced competitively. Are you ready to own it now? A private seller is a gamble. The dealer makes the next move: they might accept your offer, they might make a counter offer, or they might say that it is too low. “Danny [Koker] fights tooth and nail to keep it real because car people know when you are faking it. The lower you negotiate the price, the less depreciation you may have to pay for over the life of the lease if all other terms remain the same. Some dealers may say the rent charge — also known as the money factor — isn’t negotiable. Just like when you buy a car, dealerships may have an incentive to offload certain cars on their lot. Your risk is higher, those lots go out of business all the time, so you have very little recourse, but you will be paying less. Press question mark to learn the rest of the keyboard shortcuts, Ford Sales Manager (Customers still don't like me). Don’t put much faith in promises made remotely, and don’t bother making offers. Disney does the same thing when they offer incentives on the new properties. Just because it has a clean CarFax that is not the gospel. Here is how to make it simple and easy: State that you are ready to buy it now. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. You shouldn’t not buy a used car sight unseen without driving it. If the price is right and you like to drive the latest car models, leasing may make financial sense for you. It is normal for the sales person to “third party” use a real or imaginary decision maker like a manager. Consider the many tips for negotiating and saving money, whether you’re buying a used or new vehicle. © 2007–2021 Credit Karma, LLC. If you found the lowest priced car, you think the price is fair, you are ready to buy, you want to get it over with before the car gets sold – you could just buy it. Now, the biggest issue that brings the most questions: the price. Can it be cancelled? We finally agreed to raise the price to an amount that, after figuring in the trade-in, was what we had thought was their break-even price. We are continually improving the user experience for everyone, and applying the relevant accessibility guidelines. Does an auto loan make more sense for you? Sounds scary? "Trade-ins that come into the dealership as part of the new-car purchase are the source of about one-third of the used cars and light trucks in a franchised dealer's inventory. Here are some important terms to brush up on before you head to the dealership. First – you don’t have to negotiate. Even so, you may be better off financially if you purchase a reliable used car and drive it for 10 years or more. I’ll be honest and say financial motives were more of an incentive that the environmental motive.