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Purchasing Strategies - Questions & Success Stories

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#1 of 3886 Purchasing Strategies - Questions & Success Stories by kirstie_h HOST

Feb 09, 2005 (1:29 pm)

Have a question about how to start negotiations or need advice on a particular approach? Do you have a successful strategy that you'd like to share? Start here!

#2 of 3886 ISO opinions - what do you think of this strat? by richk1

Feb 09, 2005 (3:33 pm)

Hi All - I'm getting ready to purchase a new luxury car in the next couple of weeks. After much reading here and on other sites, I think I have my purchasing strategy figured out, but before I put it into action, I wanted to share it with this very knowledgeable group to get your feedback: do you think it will work? can it be improved? should parts be scraped? Thanks in advance for any feedback!
 
Using the manufacturer website to find all dealers within a 100mi radius (not going to use online svcs that solicit quotes for me), I will call each to get the name of the fleet mgr and their fax number. On the morning of 2/21, I will fax each one a very respectful, but business-like letter letting them know that I am accepting bids for this specific car & options through 2/23 and that I WILL be purchasing this month. My ask is for their "all in" price on an in stock model. I'll specify that the bid should be inclusive of all non-finance related costs (dealer prep, doc fees, ADM). My intention is to end up with a mutually beneficial transaction where I get the lowest price possible while the dealer gets a relatively low maintenance sale so they can move product off of their lot and focus their time and efforts on other prospects.
 
On Thursday 2/24, I’ll then fax each of the responding dealerships again letting them know the (honest) lowest bid that came in and will request one final bid before I decide who to go with and make arrangements to take delivery on the 28th.
 
Well – what do you think? Does end of the month time frame help me at all? Do you think enough of the 15 dealerships in my radius will respond? Has anyone else done something similar? Do you think I’m I better off finding 3 local dealerships and just putting in the time to play the game and do the dance with them? Thanks!
Rich

#3 of 3886 Rich, by driftracer

Feb 09, 2005 (3:48 pm)

not to be abrupt, but I think you're wasting your time with the shotgun faxes - first, "fleet" managers handle "fleets" for business owners, not single cars for consumers. Secondly, they get BUNCHES of faxes just like what you're talking about and most get thrown into the round file.
 
Pick two or three places, preferably close to you, check out their service departments, the attitudes of service and sales personnel, and the attitudes of their customers (big indicator), and go forward in person.

#4 of 3886 Re: Rich, [driftracer] by asafonov

Feb 09, 2005 (5:42 pm)

Replying to: driftracer (Feb 09, 2005 3:48 pm)
When I bought a (non-luxury) car 2 years ago, I found Edmunds' "Contact Dealer for quote" form very helpful. I emailed from a real account (non-AOL/Yahoo/MSN) and included my business and cell phone in the RFQ.
 
When I received the responses (3 out of 5), I assumed the dealer's attitude was reflected in the salesperson's words and "tone." No response - obviously out. "Come on down we give you best price" - out. "We'll do you a favour by selling you this Accord at $500 off MSRP but the deal is good today only, and, BTW, we charge a couple hundred for dealer prep" - out. The one remaining dealership was straightforward and responsive. I was not disappointed with service experience either.
 
Faxes (and blast-faxing) is so, ummm, 80s?

#5 of 3886 They can't all give the best price! by jude

Feb 09, 2005 (6:16 pm)

Hi to all. First time user from Australia. Love the site.
 
I have selected vehicle and started doing the rounds to get prices (am getting 4 quotes). I have put this in a table that I am happy for other dealers to look at so that they know what they are up against. My problem is that ALL of them say that they won't be beaten on price. How do I handle this aspect of the negotiation?
 
I would be grateful if someone would offer words of wisdom.
 
Thankyou and have a great day.

#6 of 3886 Re: They can't all give the best price! [jude] by kirstie_h HOST

Feb 10, 2005 (7:15 am)

Replying to: jude (Feb 09, 2005 6:16 pm)
Ah, but some of the will be beaten on price. Otherwise, you could continue going from dealership to dealership and eventually get the car for free! Do they say they won't be beaten on fees? On financing? Doubt it. Some of these are used to cover up the actual cost to you.
 
You're going to spend a lot of time going from dealership to dealership if you do it this way. Do you have a favorite dealership among the 4 - does one of them have a better reputation, or come recommended? If so, you can take your 4 quotes straight to that dealership and show them your lowest offer (if they're not the lowest), and let them know you'll buy from them today if they meet or beat that offer.
 
If you don't have a favorite, go straight to the one with the lowest price, if that's important to you. But be VERY careful indeed. Often the "lowest price" doesn't end up being the lowest - you get stuck with fees and add-ons not quoted in the price, or bad financing.
 
When you start shopping a low price around, you're really opening the door for a lot of shenanigans that won't, in the end, benefit you.

#7 of 3886 Shopping multiple dealers by 1racefan

Feb 10, 2005 (8:07 am)

Typically what I do is to give the dealer that I have had the best past experience with first crack at my buisness. For example, If I am interested in buying a Honda, and I have had good overall dealings with a particular dealer that sells Hondas, I will give them the first shot at my business. However, If I am looking for a Honda, and haven't had any dealing with any Honda dealers, I will go with the dealer that I have heard the best word-of-mouth feedback from my family and friends. The way I see it is that I would rather give my business to the dealer that treats me the best during the buying process, and that I feel like will treat me the best after the sale (ie..service) - even if I end up paying a few hundred dollars more. For me, it isn't worth it to feel like I have been through a 2 hour boxing match at a particular dealer all to save a couple hundred dollars. The only "pearl of wisdom" that I can really offer is that if you are going to buy a car, take the time to get pre approved for a loan thru a credit union or bank before going into a dealership. This makes negotiations a lot easier - plus you already know what kind of an interest rate you should expect. This way you can mainly focus on the price of the vehicle, instead of haggling over a monthly payment. I will always tell the dealership that I have arranged my own financing, but they may try to beat the interest rate if they would like.

#8 of 3886 Re: Shopping multiple dealers [1racefan] by kirstie_h HOST

Feb 10, 2005 (8:22 am)

Replying to: 1racefan (Feb 10, 2005 8:07 am)
Yes, if you shop the price all over town, you'll probably end up feeling like you've been battered by the end of it - and shopping when you're exhausted isn't a good idea.
 
If you're quoted a super low price that seems too good to be true, it likely is. Check out the new cars page here first, and price out your vehicle so you'll have a ballpark idea of what to expect.

#9 of 3886 Re: Shopping multiple dealers [1racefan] by isellhondas

Feb 10, 2005 (8:24 am)

Replying to: 1racefan (Feb 10, 2005 8:07 am)
My thoughts exactly!
 
From my viewpoint, I am constantly amazed at the pain some people will put themselves through when they buy a car.
 
Most dealers will round can "blast faxes". We get dozens of these a week usually on the same form letter that must be somewhere on the internet.
 
It really doesn't have to be a miserable procedure. My advise would be to ask your family, friends and co-workers for a referral. Ask them how well they were treated, hw is the service department, and if they felt the price they paid was reasnoble.
 
The "fleet manager" is usually just another salesperson with more experience than most. I have often been tempted to ask..." Oh, how many cars will you be needing for your fleet?"
 
It really doesn't have to be hard. It can even be fun!

#10 of 3886 craig - dropped you an e-mail by driftracer

Feb 10, 2005 (8:35 am)

about a 2005 Civic EX...

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