Quote:
Originally Posted by Segments
Have been looking at cars for a few months now, mainly 2007-2009 328xi coupes, and have been told that the list prices are too high , and I should be able to get these cars for marginally cheaper. Now, I'm assuming that is due to the way you talk these dealers down. Can someone give me some "firepower," for lack of better words, to haggle them ? What exactly do you argue to get a car down from 15k-16k to 13k-14k ? Thanks.
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Segments,
Be glad to assist. I don't think a $2000 discount off a USED car is unreasonable. Nor is it unreasonable for a new car.
You might be surprised to learn what dealers make on used cars - the profit is sometimes more than a new car. I would be willing to postulate that the 2007/09 has at least $4000 - $5000 profit in it.
Regarding "firepower" - arm yourself. Arm yourself with knowledge. Spend a little time and do your research. Check out KBB, Auto Trader, TrueCar, Edmunds, etc. regarding current used car prices. Use this information to gently and persuasively negotiate the selling price.
Closely inspect the auto - look for everything. However, most dealers don't care if the car has a scratch or mismatched tires or a dirty engine compartment. You could say, "It will cost me $1500 to replace the tires or fix the paint, etc. However, this tactic may not have an impact on the price. However, it may be something that you will not want to accept.
According to the experts, pharmacists and pastors rank near the top for honesty; and used car salesmen
typically rank last - according to the experts/research. You may not get all the information you need to make a good decision.
Don't get emotional about the purchase. Emotions affect logical thinking. Keep your emotions in check and use your brain while negotiating. Be prepared to walk and look elsewhere. Do
NOT fall in love with the car...any car. You (like everyone else) need a car. You do
NOT, however, need a 2007/09 BMW. Any car will get you from point A to point B.
Let me give you an example. If a 2007 BMW is listed for $15,000 (at a dealership). The average trade in price might be $11,000 (excellent condition). There is a very good chance the dealer paid $10,000 for the car. They most always pay less than trade in price for a used car. Therefore, you know the dealer is making $5,000 profit. How do I know this - I've leased cars for years and upon lease expiration - I tried to selling them to a dealer. They typically give you below wholesale price.
Don't worry about ensuring the dealer is making a profit. That's NOT your responsibility. You want the car for the
least amount of money. Start low and be willing to go up a little to show good faith. I would suggest $500 at a time, but no more. So, start at $10,000 and move up to $10,500 and so on. Be firm with your ultimate price, e.g., $11,500. If the dealer does not budge - WALK. Get up, thank them for the opportunity to discuss the purchase, be polite and professional, and walk out. Call back or visit in a day or two and try a different sales person. Be prepared to walk again...leave your number...you will get a phone call. Let them know you're keenly interested, been pre-approved or have cash, but not in love with the car...you just need a car. It's okay to say, I'm looking at Lexus, Infiniti and whatever.
Most suggest buying near the end of the month. Some are trying to meet their quotas and MIGHT be willing to negotiate a lower price to hit their targets.
Terms you should know:
1. Retail price.
2. Trade-in price.
3. Wholesale price.
4. Private party retail price.
5. Four conditions; excellent, good, fair, poor.
6. Current prices on like models.
Remember, dealers have a huge overhead and private sellers do not. It might be to your advantage to buy from a private seller.
I hope you find this information helpful - and, another
arrow in your quiver.
Semper Fi