Negotiating with a car dealership online for a Used vehicle

[Binkandabee]

How exactly does this work? There is a vehicle that I am interested in (at a dealership out of town). It's slightly out of our price range, but I want to know if they'd negotiate the price to within our budget before I even go look at the vehicle. If they won't no point in even making the drive. How does this work? We've always either purchased from a private seller or from a local dealership.

[codex57]

It works the same as what you're used to. Typically you negotiate over e-mail. Just send an e-mail to their used car dept or just sales in general if they don't separate new/used. Location doesn't matter much, unless you want transportation or delivery included. Then, it's just another point of negotiation.

[brittone2]

I haven't done this in a long time, but we bought our 05 Ody by negotiating entirely online. I received a lot of helpful info from the Odyclub forums and Edmunds.com at that time.

We basically just started contacting dealerships, letting them know what trim level we wanted (I didn't want DVD or Nav, but wanted leather, etc.). We also let them know we had flexibility on color (had a few options we'd consider). We let them know we were willing to buy within a week or so, or even faster if they could give us the best price. We asked them for their best price, *out the door* (important so you are comparing apples to apples). We started getting #s, then started going back and forth online. Oh, and a few asked us to still come in and I refused, letting them know I had a toddler and it would be painful for all involved :p so it was not going to happen. We then started negotiating the price down...we had a target in mind based off of data for our trim level using the Odyclub and Edmunds forums (figure out what other people are paying in your relative area for the trim level you want). Once we started getting close to that, we eventually hit kind of a bottom from everyone. Then I figured out that some people were getting even better deals by going a few hours outside of their geographical area...some dealers would deliver for free, etc. So we went outside of our area, and again prices moved enough to make it worth a slight inconvenience. One or two local dealers eventually met that price, with the caveat that they'd only honor it if we got into the dealership ASAP. So we did, and we were very happy with the price we paid.

Again, we haven't negotiated that way in years, and I don't know if it is still being handled the same way. I'd research as much as possible in advance a target out the door price for your area, and make sure when you start negotiating you ask for the out the door price.

At that time the wisdom from edmunds was to not mention anything about a trade until the #s were finalized (and in the meantime figure out a fair # for trade in value for your car on your own), and you could often do better selling on your own...the inconvenience of that may not be worth it.

Hopefully someone who has handled it more recently will be able to tell you how they approached it.

[AnnieW625]

I would do what Codex says to do, but if they want a figure from you I would throw in the figure that you are comfortable with paying, but this is where it gets tricky, if you low ball them more than what you are willing to pay then they might come back closer to what you are willing to pay vs. saying that you want the car for xxx and them coming back and saying nope, we can only go as low as xyx, but when they really know that they can go as low as xxx.

I haven't actually done this, but below is how I negotiate for work. My last new car I contacted the fleet manager (referral from a friend), and did research prior to going in on what my price should be so when the fleet manager offered me the price after our test drive I already had a figure in mind as to what I wanted to pay because it was equal to the carsdirect.com price for my area. I am about to go and do the same thing again, but this time I am going to get some quotes from multiple dealers, and one of those will be through the Costco Auto program because the dealer advertises they do this. I am also looking at a car that doesn't get discounted very much so I want to be able to try and find the best deal possible.

example:
car price is, $29,500
your max price is and offer to them is, $27,000
their first offer might be, $28,300 (they've met you half way)
your rebuttal offer could be, $27,500
their second offer could be, $28,000 (and honestly unless they really need to move the car they won't go much lower than that)

car price, $29,500
your low ball offer is, $26,500
their first offer might still be, $28,000 (they've met you half way by taking off $1500 off the price of the car)
your rebuttal offer is, $27,000
their second offer will be $27,500, which is $500 less their final offer above so you know that they could have gone lower the first time, even if it is only $500.

I work in insurance and I negotiate my stuff this way. I always offer a set amount and they usually come back higher, and I still would prefer to go lower, and we usually always end up meeting in the middle, or if I am lucky a little under the middle.

Good luck! I would also start looking for a similar vehicle near you and start negotiating that price as well. It could help you in the end with the other dealership.

[Binkandabee]

Ok, so walk me through this. I inquired about the vehicle and asked for the out the door price. I was told the internet advertised price plus a $200.00 admin fee (figures). How do I respond to this?

[brittone2]

Ok, so walk me through this. I inquired about the vehicle and asked for the out the door price. I was told the internet advertised price plus a $200.00 admin fee (figures). How do I respond to this?

if possible I would use Edmunds and other forums to figure out what the best prices are on the make, model, and trim level in your area before responding. If they are brushing you off based on the numbers you find elsewhere then I would say thanks to your time, that number isn't going to work for me. See if they come back with a better number. Don't be afraid to contact a few dealers at the same time.

[AnnieW625]

Ok, so walk me through this. I inquired about the vehicle and asked for the out the door price. I was told the internet advertised price plus a $200.00 admin fee (figures). How do I respond to this?

I have never done it but some have said that you can refuse to pay the dealer's prep. fees. I don't recall what they were when DH bought his 01 Corolla, but they were something like $80 when I bought my Pilot in 2006. I figure if it is less than $100 it is not a hassle. I don't like car buying being a hassle, but I know other people (including those who often post in car forums) who will fight every little fee.

IMHO if you are agreeable to the price then I don't know if it is really worth haggling some more unless you know for sure you are going to get more money out of it.