Alright, here’s the basic process. The free guide goes into much more detail and explains more on how dealers operate but here are the basic steps you need to take.
1. You need to decide what car you’re going to buy. Try and narrow your choices down to 2 or 3 cars. You’ll need to take them for a test drive, here’s how to avoid the hard sell afterwards. Walk into the showroom and look for the youngest, most inexperienced looking salesman. Tell them upfront you’re not quite decided yet and want to take a drive in one of the cars you’ve narrowed down. That you’re not ready to commit and are here only to take a test drive. While you’re in the car, even if you love it, just act kind of wishy washy. Tell him you kind of like it but you’re not sure yet. Make sure the test drive is long enough. You need to know what this car will be like driving every day.
He’s going to ask you questions like “if I get you the right price, would you buy this car today?” Just act really unsure and say “I don’t know” or “I need to talk it over with my spouse” etc…
While at the dealer note down from the manufacturers sticker (not the dealers) on the car.. the vin #, model number, suggested retail price for base car, plus all the options and prices of them.
Thank the salesman for his time, take his card but don’t give him you’re phone number.
Don’t go into his office to talk about it or let him bring in someone “who knows more about whatever..”
2. Each month dealers will sell one or two slim to no profit cars to customers who’ve done their homework. Very important to understand!
There are reasons they are willing to do this. Many times a dealers future supply is based on how many cars they are selling now. They want to be sure, in the future they won’t lose out.
Selling a car for a little profit is also better than no profit. Plus they want your car service business in the future. Parts and service, in many cases, account for 50 percent of the dealers profit from only 15% of gross sales. They want your service!
3. Know how the dealer invoice works
The dealer invoice is the actual price billed by the car manufacturer. It’s what the dealer must pay when the car is deliverd to his lot. (This is usually done on a credit arrangement until the car is sold. At that point he repays the loan) You can get dealer invoice pricing from several places online. kbb.com and edmunds.com. Every sticker has this information on it. It’s referred to as the “monroney”. A lawmaker of that name in 1958 sponsered a bill that makes that information mandatory.
4. The part they don’t want you to know about
Most dealers have around a 3% holdback. This is money the manufacturer holds back until the car is sold. It essentially means that a dealer can sell a car for “invoice” and still make $1000 or more on the car.
A lot of manufacturers also have incentives that are paid to dealers when they hit certain sales volumes.
You can take full advantage of this, especially if the month ends on a weekday. If the end of the month lands on a weekend, wait another month if you can. Many times they will be given a bonus of a few hundred dollars for every car sold that month. They have to sell a certain amount though to qualify.
If at the end of the month they are only one or two cars away from hitting their bonus, they’ll probably be willing to lose money on your car. They’ll more than make it up on the bonus they’ll recieve for all cars sold that month.
This works especially well on weekdays when it’s super slow at the dealership. Think Tues, Wed, Thurs.
Wait till about 1 or 2 days before the end of the month to implement the system.
5. How to get the deal
The free guide has the exact email template that I used to save over $7000 on two cars. Just enter your email to get it.
A. Make a list of the local dealers that are close enough to buy from
B. Go to each dealers website. Look for and find someone called the “internet sales manager” which will have their email address.
C. Send them each an email telling them you’re 100% going to be buying a car either today or tomorrow. Tell them which model number and the exact options you want. Tell them you are also contacting other dealers to get the best price. Tell them you’re aware of dealer holdbacks and sales incentives and are looking to get your car for about $500 over dealer invoice.
Over the course of the day, you’ll recieve back responses from the dealers with their quotes.
Take the top two or three and email them that “dealer A” is offering the car for $400 over invoice. However your dealership is closer to my home and I’d rather purchase it from you. Plus I’d rather bring my car to you for service. Can you beat that price?
(Note: you can only do this once and at most twice. If you keep pitting one against the other they will just get mad eventually)
Print out the email with the lowest price quote. Take it to the actual dealer that is closest to your house. Show them the quote and ask in person, can you beat that?
There you have it, this method absolutely works. If you’d like the copy/paste template for sending out your emails as well as more detailed information, just enter your email and I’ll send you a free copy.