Any advice on negotiating with a dealer, for a "nearly new" car?

icebergx

Hi everyone,
I'm hunting around for a nearly new car with low milage and I've got a couple of possibilities that I've spotted at two main dealers, one local and one 100 miles away.

I have the cash to purchase but I've read that it can get a discount by taking out finance, then immediately paying it off. Can anyone take me though how I should go about doing this?
Should I aim to discuss finance after trying to negotiate a bit on price or after?

When I spoke with another dealer recently, he open the conversation by asking me how I intended to pay for the car. What would be the best way to avoid this question until the right time?

Are there any other negotiation tactics I should be thinking about?

Also, I'd like the usuals extras like mats, mud flaps and a tank of petrol. I guess it would be best to mention these at the start? Or maybe not...

Thanks for your help in advance.

Fat_Walt

Go in look at the stock, get the salesman interested in selling you a car. Have a chat and a coffee, Take it for an extended test drive, not just the usual run round the block. Get back and have another coffee, discuss some of your options. The more time you get them to invest in you the harder it will be for them to let you walk away. If it mean walking away and going elsewhere be prepared to do so.

walwyn1978

Assuming you're talking to main franchised dealers, I discovered once that many salesmen in some marques have a fuel budget which is entirely seperate from anything else. In other words, the cost of a full tank is not linked to the price of the car.

As such, I learnt that if you ask about the tank of fuel early, they factor it into the 'price to drive it away'. Eg if the tank is £50 then the price of your trade in goes down by £50 or the 'best price' goes up by £50. If you wait till the end, and I mean literally the end, the point where you're about to shake hands, THEN say 'I'll shake your hand right now if I get a full tank when I pick it up' then the guy will (probably) do it because he has almost closed the sale, yet he can do it off his fuel account without affecting the numbers behind the sale.

Obviously not a guaranteed thing, and no idea whether it's universal across all dealers, but I've done this across my last 4 car purchases in 3 different parts of the country with 3 seperate dealers and each time got a result.

You can but ask.

Strider590

^^ I think going to that sort of length for £60 worth of fuel on a £10'000 car, just makes one look like an idiot. I imagine the salesman rubbing his hands together and thinking "heh, this is going to be easy".

Nobody gets a "deal" on a car, it's all smoke and mirrors, these guys are experts at separating you from your cash and making you "think" your getting a good deal.

At the end of the day, new cars are an obsession for those seeking social status, the rest of us apply common sense, don't care what the Jones think and we buy what we can afford. So these salesmen know that all they need to do is give you an excuse to buy the car.

I notice Vauxhall dealers are doing the £500 of "free" fuel thing again, i'm sure there are MANY stupid people who don't even stop to think "hold on, why can't I just have £500 off the sale price???" or "I wonder if this means they've jacked up their prices by £500???", BUT equally i'm sure there are many people who realise this, but only really need an excuse to justify their purchase.

icebergx

I think I'll go in and try to get the best deal for cash, with the odd extra. Then, when we sit down to do the paperwork, I'll pose the question "what can you do if we go down the finance route?" Will all dealers offer a discount for finance? Is it (more or less) a given to get a discount for cash?

Also, Is there anyway I can pay for a car and drive it away on the day? I don't mind doing a bankers draft or even paying by my debit card (if that's at all possible.)

Iceweasel

Don't expect any discount at all for paying cash - quite the opposite.

There is no problem in using a credit card to get the benefit of their protection - I usually only use the CC for a deposit.

Also no problem in using a debit card - that gives instant payment and no need for any banker's draft or such old school stuff.

I'd be looking at discussing finance first and then later checking if there was any discount for cash.

neilmcl

Strider590 wrote: »

At the end of the day, new cars are an obsession for those seeking social status, the rest of us apply common sense, don't care what the Jones think and we buy what we can afford. So these salesmen know that all they need to do is give you an excuse to buy the car.

Yet the only one that seems obsessed about others choosing to treat themselves to a new car is you, strange that.

Iceweasel

neilmcl wrote: »

Yet the only one that seems obsessed about others choosing to treat themselves to a new car is you, strange that.

I agree - strider has gone a bit OTT saying that new cars are an obsession for those seeking social status.

Had he said 'many' or 'some' then I would agree.

I bought a new car to get the latest technology and improvements - for my benefit - I don't give a monkeys what others think- or what 'status' my car may or may not have in the minds of others.

I resent the implication that I am lacking in common sense.

If we all did as strider suggests there would be no used cars for the 'clever' people to buy. LOL

k3lvc

icebergx wrote: »

Hi everyone,
I'm hunting around for a nearly new car with low milage and I've got a couple of possibilities that I've spotted at two main dealers, one local and one 100 miles away.

I have the cash to purchase but I've read that it can get a discount by taking out finance, then immediately paying it off. Can anyone take me though how I should go about doing this?
Should I aim to discuss finance after trying to negotiate a bit on price or after?

When I spoke with another dealer recently, he open the conversation by asking me how I intended to pay for the car. What would be the best way to avoid this question until the right time?

Are there any other negotiation tactics I should be thinking about?

Also, I'd like the usuals extras like mats, mud flaps and a tank of petrol. I guess it would be best to mention these at the start? Or maybe not...

Thanks for your help in advance.

You're approaching the end of the trading period (quarter) for some dealers so a prime time to strike a deal - your challenge is to find a dealer/salesman who needs this deal.

All will be easier if you have no trade-in - if you do it muddies the waters

Over the next few days find yourself a list of cars (sound like you've done that already) but don't become attached to a specific one as you need to be prepared to walk away

Visit showroom, test drive, answer random questions from salesman but avoid discussing mileage you'll do/length of time you'll keep car/monthly budget etc

Get to showroom, show interest, tell them you've other cars you're looking at that have better colour/spec/mileage/price but you may compromise on those if deal is right then let him/her go into a room and talk to the organ grinder.

Be busy on your phone when they come back (talking to another dealer is always a good trick) and walk away from their first offer (usually a finance deal) - you can obviously borrow cheaper than that so what benefit is there to you to pay their interest rate (deposit contribution, free servicing/warranty, mats, fuel etc etc)

Scrub/ignore all the 'deals' on GAP insurance/paint treatments/tyre cover/alloy cover etc unless they're genuinely at cost (they're probably added these into the finance deal as well to up the commission)

All the way through this know in the back of your mind when you're happy to sign and if you don't get to that point then walk away leaving your number that if they change their mind/sweeten the deal then to come back to you. If you want to give them a target number (either monthly payment or total cost) then make it realistic - 10% lower than their best offer probably isn't going to get you taken seriously whereas another £7 per month/£500 deposit contribution/extra years warranty might be doable

The risk in all this is that you end up with no car at end of the month and it 'may' cost you slightly more in October as dealer may not be as hungry.

Good luck

Oakdene

Go through the finance route as you often get Deposit Contributions or free service plan chucked in as part of the offer.

Once you've bought the car wait 2 weeks or so & phone the finance provider & settle over the phone.

Herzlos

Oakdene wrote: »

Once you've bought the car wait 2 weeks or so & phone the finance provider & settle over the phone.

You can normally settle the finance for no charge (beyond pro-rata interest) within a 14-day period, so I'd phone and settle it as soon as you've driven home.