I am looking at buying a vehicle at Fannin Auto Sales. Has anyone had any experience with them, good or bad? What is their normal mark up. Basically, how much can I expect them to come off the listed price? They have it listed at $25995. In the past I know dealers would come off of their list by around $3K no problem and then deal from there. Haven't bought a vehicle from a dealer in a while, so I don't know if that still stands or what to expect. He claims he has it listed at around what he has in it. I've heard that before and don't believe it for a second. What's my first offer, and where do I go from there? I know some of you are probably really good at this type of thing and some people even like doing it, but not me. I hate dealing. Period. Thanks for your help in advance.
OT: Purchase of used vehicle
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Rule 1: If a car salesman is talking; he is lying.
Rule 2: If a car salesman is quiet; he is thinking up his next lie.
I would do an internet search of dealers in about a 200 mile radius for the type car you are looking at ( and similar models) to get a feel for what they are being offered at elsewhere. Also go to KBB.com and NADA.com to see what they say they are worth. Once you get a good idea of that then go in and start your negotiations. When he starts to balk at your offer tell him (or show him) 10 other offers you have for the same or similar car at other dealerships. I have read many times that the bulk of a car dealer's profits come from the sale of used cars. True or not, I don't know but it makes sense to me because that is the easiest spot to do markups. Anybody with a computer and 10 minutes can find teh invoice pricing of a new car and and incentives so it is very hard to lie about a huge mark up. Used cars that information is next to not existing and things like condition of the car, etc. are all subjective and the easiest to disguise.
Rule 2: If a car salesman is quiet; he is thinking up his next lie.
I would do an internet search of dealers in about a 200 mile radius for the type car you are looking at ( and similar models) to get a feel for what they are being offered at elsewhere. Also go to KBB.com and NADA.com to see what they say they are worth. Once you get a good idea of that then go in and start your negotiations. When he starts to balk at your offer tell him (or show him) 10 other offers you have for the same or similar car at other dealerships. I have read many times that the bulk of a car dealer's profits come from the sale of used cars. True or not, I don't know but it makes sense to me because that is the easiest spot to do markups. Anybody with a computer and 10 minutes can find teh invoice pricing of a new car and and incentives so it is very hard to lie about a huge mark up. Used cars that information is next to not existing and things like condition of the car, etc. are all subjective and the easiest to disguise.
You'll see a large discrepancy between KBB and Edmunds, so expect to pay somewhere in between. Definitely search outside the Jackson area as you will always find a better deal. I sold my car to someone in MN and bought my new one from someone in CA. Do your homework when buying a car unseen and get a pre-purchase inspection done as well. Also, it makes sense to finance a car now given the low rates (I got 2.9% for 60 months from BAC). Also, banks won't finance cars as easily once they are 7+ years old.
I would expand my search to 500 miles on AutoTrader and be prepared to catch a one way flight to where I found what I was looking for. Of course do the Car Fax thing also. I`ve save major dollars, bought some damn fine cars and had fun doing it this way.
call on it at the end of the month. if sales is short on quota they are more willing to deal. Be prepared to let some go. It is a war of attrition, don't fall in love with every one that fits your need.
Get a number in your mind you can accept for the model/options. I just bought a dodge challenger. I had to let several I loved go, but i ended up with what I wanted all along.
ETA: don't go in spouting off edmund's/KBB numbers, it pisses them off. You have to do that edmunds/KBB research though. those numbers are for your head. This I learned through my own bitter experience.
Get a number in your mind you can accept for the model/options. I just bought a dodge challenger. I had to let several I loved go, but i ended up with what I wanted all along.
ETA: don't go in spouting off edmund's/KBB numbers, it pisses them off. You have to do that edmunds/KBB research though. those numbers are for your head. This I learned through my own bitter experience.
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Do research and find as many examples of the same/similar car you are looking at as you can. Besides using autotrader.com and cars.com look at other local dealers websites, especially high volume ones for a similar vehicle. Many dealers have internet pricing that is much better than when you walk-in. I got 3,000 off a car they wanted 10,500 because another local dealer had the same year and model car with about 5,000 miles difference on the odometer at an internet special price of 7500. The internet dealer I did not really want to deal with, but when I showed them the page, they matched the price right away.
My brother two years back got a new Kia Forte Coupe for around 15,000 because he found a price from a dealer within 150 miles of memphis. He took that ad to the local Kia and they found him the same car and matched the price.
My brother two years back got a new Kia Forte Coupe for around 15,000 because he found a price from a dealer within 150 miles of memphis. He took that ad to the local Kia and they found him the same car and matched the price.
I have purchased two vehicles in the last 2 months. This will be lengthy but it will be useful. I visited over 10 car dealerships in the process so take the time and read it.
First of all, I have heard every excuse, lie, story, etc., you could imagine. The key is to know what you are talking about. If you're doing a trade in, dont expect to get much for it. I have learned that trade ins are probably the most profitable method for car lots. I traded in my vehicle and got what I thought was a solid offer; however, I checked back a week later and they were *asking* $5000 more than what I traded it in for. Now I realize they didnt sell it for that, but I still thought that was a pretty dang high mark up.
This is very important- do not get lost on their offer sheets. I can promise you that you will see a sheet of paper with 4 boxes in the middle of it. They are going to write as many numbers in those boxes as you can imagine to try and confuse you. Also, take the time to calculate out what your payments will be overall. I know that sounds simple, but on their first offer I was going to end up paying $8,000 just to finance the car and pay for the title and "document fees"! And speaking of, their first offer will be absolutely terrible. They just aren't going to give you anything worthwhile on your first offer. They'll make it sound like their losing money on the offer you actually take, but trust me, they're not.
They love to extend the months of your loan to try and lower the monthly payment because most of them are stupid and think that they can convince you that they are giving the car away. Also, I made an offer on a vehicle and I told them I wouldnt buy it unless the APR was under 4% because I knew I had good credit. Well, he responded " oh yeah we're right there at that." Of course I said, "what do you mean?" What does "right there at it" equate to? Well, it turned out that it was 5.5% which would have made about a $1500 difference in how much I would have paid for the vehicle. So make sure you have concrete numbers; if you say you wont buy it unless you have ____% financing then dont budge. Obviously, that'll be up to you and your credit.
One salesmen made an offer to me and informed me that even he couldnt buy the vehicle for that amount. Which. is. absolute. bull. crap.
I strongly recommend not buying a vehicle after one visit to the dealership. People get lost in the euphoria of smelling the leather and imagining how much more smooth the drive is in that new vehicle. You need to leave the dealership and think on it for 24 hours. They'll hold it for you for that long, trust me. But they're not going to want you to leave without signing a deal. Their number one rule is to not let the customer leave the lot, so dont expect your visit to be a quick one. It will take you a while because when you say your leaving they'll bring out their sales manager, and then when you tell him you're leaving they'll bring out their general manager, and if you still are trying to leave there is a chance that there's another suit you've yet to meet but that you need to meet before you leave.
First of all, I have heard every excuse, lie, story, etc., you could imagine. The key is to know what you are talking about. If you're doing a trade in, dont expect to get much for it. I have learned that trade ins are probably the most profitable method for car lots. I traded in my vehicle and got what I thought was a solid offer; however, I checked back a week later and they were *asking* $5000 more than what I traded it in for. Now I realize they didnt sell it for that, but I still thought that was a pretty dang high mark up.
This is very important- do not get lost on their offer sheets. I can promise you that you will see a sheet of paper with 4 boxes in the middle of it. They are going to write as many numbers in those boxes as you can imagine to try and confuse you. Also, take the time to calculate out what your payments will be overall. I know that sounds simple, but on their first offer I was going to end up paying $8,000 just to finance the car and pay for the title and "document fees"! And speaking of, their first offer will be absolutely terrible. They just aren't going to give you anything worthwhile on your first offer. They'll make it sound like their losing money on the offer you actually take, but trust me, they're not.
They love to extend the months of your loan to try and lower the monthly payment because most of them are stupid and think that they can convince you that they are giving the car away. Also, I made an offer on a vehicle and I told them I wouldnt buy it unless the APR was under 4% because I knew I had good credit. Well, he responded " oh yeah we're right there at that." Of course I said, "what do you mean?" What does "right there at it" equate to? Well, it turned out that it was 5.5% which would have made about a $1500 difference in how much I would have paid for the vehicle. So make sure you have concrete numbers; if you say you wont buy it unless you have ____% financing then dont budge. Obviously, that'll be up to you and your credit.
One salesmen made an offer to me and informed me that even he couldnt buy the vehicle for that amount. Which. is. absolute. bull. crap.
I strongly recommend not buying a vehicle after one visit to the dealership. People get lost in the euphoria of smelling the leather and imagining how much more smooth the drive is in that new vehicle. You need to leave the dealership and think on it for 24 hours. They'll hold it for you for that long, trust me. But they're not going to want you to leave without signing a deal. Their number one rule is to not let the customer leave the lot, so dont expect your visit to be a quick one. It will take you a while because when you say your leaving they'll bring out their sales manager, and then when you tell him you're leaving they'll bring out their general manager, and if you still are trying to leave there is a chance that there's another suit you've yet to meet but that you need to meet before you leave.
Save yourself some time, don't even deal w/ the salesmen that run to
your car before you have the ignition turned off. Go past them and go straight to the elevated platform (that every dealership has) where the sales manager is sitting and start dealing directly w/ them first, otherwise you are going to spend a lot of time sitting in a cubicle waiting for your clueless salesman who carries no dealing authority to go back and forth w/ offer/counteroffer to that sales manager. Do as others have said too, walk into the dealership w/ other vehicle sale sheets from other dealers. Tell the guy you are with that he has one shot, that's it, no counteroffers, no going back, he has one shot for giving you his best offer or you are off to purchase the other one that you already have an offer on in your hand. Obviously don't show him your numbers (if you even have any) but its good to show him that its the same vehicle and even who the dealer is.
I had one tell me on my most recent purchase that, "I don't think you want to buy a vehicle, this isn't how its done" He then started counter offering what was supposed to be his best offer that I had turned down. It was w/ great pleasure that I drove back 2 days later and when he saw me he got all happy and said "guess you are ready to deal now huh?" Showed him my new one sitting on his lot that I had purchased from his competitor and told him that I had 2 daughters that would be in need of cars and my wife hates her hail damaged one now but that I wouldn't even consider talking to him. I HATE dealing with those slime balls but if you have to, at least be smart about it.
your car before you have the ignition turned off. Go past them and go straight to the elevated platform (that every dealership has) where the sales manager is sitting and start dealing directly w/ them first, otherwise you are going to spend a lot of time sitting in a cubicle waiting for your clueless salesman who carries no dealing authority to go back and forth w/ offer/counteroffer to that sales manager. Do as others have said too, walk into the dealership w/ other vehicle sale sheets from other dealers. Tell the guy you are with that he has one shot, that's it, no counteroffers, no going back, he has one shot for giving you his best offer or you are off to purchase the other one that you already have an offer on in your hand. Obviously don't show him your numbers (if you even have any) but its good to show him that its the same vehicle and even who the dealer is.
I had one tell me on my most recent purchase that, "I don't think you want to buy a vehicle, this isn't how its done" He then started counter offering what was supposed to be his best offer that I had turned down. It was w/ great pleasure that I drove back 2 days later and when he saw me he got all happy and said "guess you are ready to deal now huh?" Showed him my new one sitting on his lot that I had purchased from his competitor and told him that I had 2 daughters that would be in need of cars and my wife hates her hail damaged one now but that I wouldn't even consider talking to him. I HATE dealing with those slime balls but if you have to, at least be smart about it.
