Don't Get Taken Every Time

[BDoug]

is the title of a book by Remar Sutton, a former auto dealer. I read it a long time ago, but it's still available (and updated). He explains how dealerships work, and what you need to do to get the best price. Did you know dealerships make most of their money not by selling cars, but by financing them? The F&I guy (Finance and Insurance), now usually called the Business Manager, makes more money for the dealership than all the sales people put together. You want nothing they're selling.

Also, there's no such thing as negotiation when you're one on one with a dealer. They hold all the cards. The only way you actually negotiate is by talking to multiple dealers. You ask each for their "on the road" price (which includes taxes, tags, delivery, administrative fees, whatever BS they want because you only care about the bottom line). You then go to several dealerships. Don't let them know what the others offered. This is the only way to get their lowest price.

If you have a vehicle to trade in, you're better off selling it as a separate deal. Again, go to several dealerships, asking for their best offer. Let them know you're going to several, but don't share the offers. You might be surprised (I have been) at the range of prices offered.

But don't take it from me - read the book!

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[Jefe1018]

Yes indeed, everything you said here is true. Thankfully a few dealers on this site are able to offer under invoice pricing and make it easier for the consumer.

 

[CerOf]

Ask to see the rate confirmation sheet. That can have a range of interest rates. F/I guy can book the deal anywhere in that range. Anything above the lowest, and they make a lot more $$.

Best to bring your own financing. It don’t tell the dealer until you are agreed on sales price and trade.

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