URGENT Car Buying Situation - Need Advice on Negotiation

People talking about walking away, there's no downside to this... Give them your straight offer (say, 15 or 15.5, whatever you'd be happy with) towards the end of the month (ie in a few days). They have monthly sales targets and at that point you may catch a break and get someone a little desperate to make numbers. Or, hell, maybe they just want it off the lot. Even a one-off car purchase is not a totally distributive problem, they have other interests besides taking your money, so think about those.

You have to be willing to let things go and not get attached to any prospective deal before it's closed or you're going to end up paying a premium for that heightened desire to buy. Remember, you have tons of alternatives to any negotiated agreement, whereas unless they have another likely buyer who's willing to pay more, they have none. You probably shouldn't have given away the information in your possession quite so readily, spend time getting them to give YOU info.

Originally Posted by bigbris1

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I worked at a new car dealership for a couple of years and can tell you that unless you are paying outright cash for any car you are getting jacked. The price agreed doesn't really matter as much as the APR you'll pay as they can just make it back there.

Moral?

Buy what you can afford straight cash.

Or arrange your own financing ahead of time? Or only finance through the dealership when it's subsidized interest rates? Or lease?

Originally Posted by JD_May

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People talking about walking away, there's no downside to this... Give them your straight offer (say, 15 or 15.5, whatever you'd be happy with) towards the end of the month (ie in a few days). They have monthly sales targets and at that point you may catch a break and get someone a little desperate to make numbers. Or, hell, maybe they just want it off the lot. Even a one-off car purchase is not a totally distributive problem, they have other interests besides taking your money, so think about those.
I might do that if I don't get a phone call by Monday. I'm not sure if they're in a hurry to unload the car, it's a unit in pretty good shape and based on the date of the carfax and inspection, it's probably been on their lot about 3 months now.

Originally Posted by the_k

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16.9k for a 2006 Accord is INSANE!!! you could get an 05-06 G35 for that kinda money.
To clarify, I'm in Canada where cars cost alot more than the states. 05-06 G35's are asking $20K+ here.

Originally Posted by bigbris1

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Moral? Buy what you can afford straight cash.
I am planning to buy a car with straight cash.

Originally Posted by Piobaire

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If I was the dealership, I would not sell you that car for less than 16.9k. Why? They already know you were willing to pay it.
OK, this is confusing me, and from everyone's advice sounds like one of my big mistakes here. The online ads all said $16,900 - then when I went to the dealership it said $17,900. I just wanted to clarify that their opening asking price was $16,900. I didn't intend to say "I'm offering you $16,900" but rather "You need to lower your opening asking price by $16,900" I figured I was shaving $1K off the starting price before the negotiations even began. What should I have done?

an 06 accord is not hard to move and someone will pay full rate

Originally Posted by FidelCashflow

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OK, this is confusing me, and from everyone's advice sounds like one of my big mistakes here. The online ads all said $16,900 - then when I went to the dealership it said $17,900. I just wanted to clarify that their opening asking price was $16,900. I didn't intend to say "I'm offering you $16,900" but rather "You need to lower your opening asking price by $16,900" I figured I was shaving $1K off the starting price before the negotiations even began. What should I have done?
You keep that in reserve. You already know that they will take 16.9 since they're advertising it. By showing it to them you essentially admitted to them that you wanted it at that price. First rule of negotiation - start lower than what you reasonably expect to get.

Your trade is a **** car? And they're willing to give you $1500 for it?

By my reckoning you are walking away over $900.
I'd re-think things.

Originally Posted by Dakota rube

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Your trade is a **** car? And they're willing to give you $1500 for it? By my reckoning you are walking away over $900. I'd re-think things.
Actually - when we take into account the fees, taxes etc - we're only $500 apart from my bottom line (I walked into the dealership ready to put up a maximum $16K in cash assuming I'd just have to scrap the camry, their asking price comes to $16,500 in cash plus the camry, which is otherwise worthless to me.) My first offer of $14,500 was just testing the waters, I didn't expect them to accept, but I didn't expect them to abruptly show me the door. That being said, what's the smart way to revive this deal? I'm going to wait until at least after the weekend before I make contact again (wait until after the weekend in case they call first, and closer to the end of the month when they have sales targets to meet.) I figure i can play it one of two ways i) Offer $15,500 cash plus the trade - if they counter offer with something else I go to $16K plus the trade ii) Just go straight to me bottom line of $16K plus the trade I asked them about appraising my trade-in and the guy got the mileage year and model on my car and ran my VIN and said he would give me $1,500. No one actually inspected the car - although he did quickly notice my door lock didn't work and he probably saw the cracked bumper. Is it possible that they might change their mind about the trade-in value, or will it be set in stone once we write it up? If they claw-back the trade-in value, that will totally f' up this deal for me.

They won't change their minds about the trade. $1500 is just a BS number out of thin air they quoted you because it is enough not to insult you, but not enough that if they discover the car is worthless they can't sell it for scrap and make it up on the sale of the new one. Take the Camry off the table next time you go, only bring it up after you have a price set in stone for the car you want. Stop using it as a bargaining chip, you're putting too many shells in the game for them to hide the ball under.

Used cars are not fungible, this is true. But '06 Accords are about as close as you get. If this dealer won't give you what you want to hear, find another one.

They still may be willing to negotiate. However, there are so many variables.

Maybe wait and call in a day or two or wait to see if they call you. I'd suggest shopping around as well. There are lots of good deals out there right now.

It sounds like they were pretty firm so that leads me to believe that they may think they can get what they're asking, have another customer interested in the car, or gave you more than what your trade is worth which is what most dealerships do to entice the customer. Maybe they might have a lot of money put into the car (fixing it up to sell, etc...) as well.


FWIW, never tell a dealer straight away that you are going to trade. Always go in stating that there's no trade involved and negotiate from there. Then once you agree on a price, introduce the trade. Once a trade is involved, then there's all kinds of room to make the numbers magically work.

As to reviving the deal, I'd call them up and offer them 15.5. Period. No trade in silliness, no nothing. If they ask about the trade in,tell them you're thinking about selling it to your brother. This is not an insulting offer, and certainly not outside the realm of reason. See what they counter, whatever. Once you have an actual price hashed out, hopefully less than 16.9, THEN tell them you want to talk trade-in. At this point, they're so close to a sale they can smell it, and remember, you've got cash in hand which makes them very hungry. Remind them they offered you 1500 and that you know you could get that on the private market. It's not enough for them to screw the deal on, they'll give it to you. You could walk out for 14k in cash.

You burnt this deal. Best to walk away and start over.

Maybe the sales rep thought you were were a waste of his time and just wanted to go home at a reasonable hour. That might be my reaction if a young guy (I assume, since this is your first purchase) gave me a lowball offer.

Did you make clear you were paying cash?

Seriously, they put $0.00 into that deal for your 12 year old Camry.

Your first offer was to "test the waters?" Why did you make the first offer? You already have their maximum price, they can't go up from there; the waters are "tested" already. Have them make the initial offer next time. Maybe it's just my style of negotiation, but I would never, ever make the initial offer on a car lease or buy. You never know, there's a chance their initial offer might be lower than your maximum, so you have already won this negotiation at that point.

If you want to revive the offer, say you sold the Camry and ask them what their best cash offer is. Then reject that offer and tell them, "We're close, but I can't do that number." Or bring someone with you to tell you that first offer is too high. Make them the 3rd party, just like he's going to be using his sales manager as his 3rd party. Then when (if) they come back, if it's in your budget, take it. If not, now I'd come out with my own number.

We had an Accord last year that my daughter turned in off of three year lease. Lease Buyout price was about 12,500 and it was under 40,000 mi. The deal is that they get these all the time as off lease vehicles, there is no shortage.

Why don't you look at what a new one would cost and the financing. It is pretty amazing what they are doing and how relatively cheap the car companies are putting out the money. they don't support the used car sales like that.

I just heard an add for Camrys that was for a Lease. $2000 down and $199 a month. If you can lease the thing for 200 and that covers depreciation, principal, interest that is a heck of a deal. You will have absolutely no maintenance. You can probably get a deal worked out for a few more miles / year and even get the cash cut. If the buyout price turns out to be good in three years then buy it. If it is too high, let them have it back.

UPDATE Hey guys, thanks for all your advice. I was chatting with a bunch of co-workers today at lunch about my exact conundrum and I got a call from home... someone from the dealership called asking about a "customer satisfaction survey" After a bunch of back and forth with the salesman and the inspection of my dying car, I just laid out my terms saying $16,000 including all taxes and fees plus the keys to my camry regardless of what state its in (they want to give me $500 for that.) He took it to his manager and he said he could do that if I would waive the extended warranty. I talked it over with my dad who told me not to accept. I went back in and I didn't back down and it basically went into him pleading with me for something, anything to seal the deal (just give me another $400, $300, or $200.") Thats when I smelled fresh meat I walked out of there pretty happy, and he actually called me on the way home saying "If you change your mind, call me direct on my cell phone" In my estimation there's a 5% chance he actually won't budge and a 10% chance someone else will buy it, and about an 85% chance he will call me to seal the deal in a few days.