What do you all consider a normal % of negotiating room after they take off rebates and give you "their price"? Assuming the x plan price on the invoice they gave me is legit, they're below that price before I ever made them an offer. I just asked for their price. It's a 16 fx4 EB screw with 502a and every option except side box steps and parallel park assist, including adaptive cruise control. I'm trying to deal with them on a "my truck plus $x" offer so they can assign values where they need to in order to make the deal work, but this seems to just confuse the salesman, or he's dumb like a fox... Not sure yet. I bought new in 2011 and negotiated in what I consider a normal way and bought a truck. It feels different across both dealerships I've been dealing with this time around.

 

8% is the markup I was told they had locally by one of the salesman when i seen him drunk at a bar. So thats what I have argued for the past 6 years

 

I am by no means an expert. I do run a financial planning and investment business, so I am good with margins and money, but that makes me no expert in car sales. I just think I'm pretty good at buying cars. I'm always willing to walk out quickly when games are being played and I make it known I don't have time or patience for traditional car sales tactics. I always check out fair purchase price on KBB amd Edmunds as a start. I then usually go a few thousand below invoice and work from there. I just bought my 2016 XLT 4x4 Sport 5.0 screw with moonroof last weekend. Sticker was $52,600, before rebates. Before trade, I paid $38k. After trade in, tax, tag and title, I financed $29k out the door. So, that is 27.75% lower than msrp. I felt like I got a fair deal and don't think I could have haggled more than another few hundred off of the deal.

The problem is, you never know how low you could have gotten. My normal procedure is to leave, tell them my final price and tell them I'm going to buy something in the next few days, whether it's from them or someone else. I leave my cell number and tell them thanks for their time....if they can do it, great, if they can't, thanks. Never failed that they called me the next morning and told me to come in and sign ppwk. Part of me finds it humorous and fun. Another hates it. In any other business, we would refuse this treatment, demand a fair price up front or not make the purchase. Not sure why car sales is so much different than everything else.

 

We had some difficulty with our 2016 Platinum F150 purchase (more than other cars prior). We did the same -- giving a fair price then leaving when they wouldn't come down enough. Our fourth dealership was the one that finally seemed interested in working out a sale. Even though the truck may look beautiful on their lot, I would advise patience.

 

Don't ever feel, or express, that you really want the car. As soon as that is revealed, or you admit it to yourself, you've lost.

 

I agree with you Mayberry. I can't go into best buy and offer them my best price on a tv they have listed at 2k. I believe it has something to do with the way we biologically respond to vehicles in general. It involves a certain amount of prowess display (we have no colourful plumage or large antlers) and making a deal for one taps into deeply ingrained hunting instincts. Car sales are geared to take advantage of that. These things go way beyond the simple necessity of transportation. The whole purchase process is an exercise in human psychology. Some dread the system, some love it, but it exists as a way to both take advantage of those who have not educated themselves by over charging, and to make others feel happy with their purchase when they do strike a better deal (always remember that they haven't sold a single one at a loss regardless of your perceived negotiating prowess).

 

True. They referred to me as a "triple net zero ", and said that meant they made absolutely nothing off the sale. It was solely for advertising and service/shop potential sales. I told him he was full of it. They made money and that's fine. I don't provide my services for free and I wouldn't sell products for free. I don't expect to get anything at someone else's expense. But, the entire process sucks. If I ever decide to partially retire and buy a business, it will be a car dealership. My advertising is no BS, no haggling, low set pricing and up front, transparency on what we make with each car sale. I guarantee people would switch brands just to avoid normal car buying experiences.

 

If you have a trade, the first place to start is determining what your vehicle is worth. Dealerships will flat out tell you that KBB is on the high end for trade-in values and they can't offer those prices, but walk out on the lot and they are selling the used cars using KBB for excellent market value. I use the same book for trade value as their used car lot. Secondly, I contact Vroom and a few other cash buyers and get a wholesale purchase offer. CarMax will do the same thing if you have one close by. My offer is typically invoice - holdback (3% of MSRP minus freight) - rebates. A high volume dealer will usually give you an out the door price over the phone. The dealer still makes money on volume sales, etc. Manufacturer to dealer rebates have been hidden in quarterly and volume bonuses. It was the only way they could hide their profit when the internet exploded.

 

You would fail-and its not because i dont fundamentally agree with you on your goals. A combination of the franchise agreements and idiocy of conumers would doom you.

 

Bunch of misinformation here...

Are you at or below X-Plan BEFORE REBATES? If so, that's good, invoice is close by.

NEVER MENTION A TRADE UNTIL YOU HAVE A FINAL PRICE. Basic How To Buy a Car... Cash purchase, get final price including everything.

Or, just buy with X-Plan...

Many threads on this.