The 'Ol "whats your Budget" question......

I got that question when I bought my prius. I replied, " Let's discuss the selling price of the car, not payments"

Dealers can match payments to any budget.

Always deal on the OTD price, not payments.

Know what you can afford before going in. Figure out your payements and then shop for a car in your price range.

 

This is so true... work the same way when you negotiate a lease. Don't ever mention or discuss payments of any kind. After you have your price, then you tell the other details (I have a trade or I am going to lease, etc).

After working for some time as the Internet sales manager at a dealership, I always recommend working for price OTD regardless of purchase or lease. I also recommend phone shopping dealers before you ever set foot in dealership. Usually if you do this right you can get the dealer to show his actual invoice sheet. If you know how to read all the lines on a dealer invoice you can save a ton of money.

The more information you give up, the more angles a salesperson has to work you from. The reverse applies as well. The more information a dealer gives up, the more ways you have to work them.

 

Very True.

NEVER mention trade in's, purchase or lease UNTIL the OTD price has been settled.

Also, Don't get extended warranty's unless you have a history of keeping the car longer then the factory warranty.

 

The dealer will always make money. There is nothing wrong with that. You want it for as little as possible, they want to sell it for as much as possible. This is no different than any other negotiation. You don't show your cards and he doesn't show his. The problem usually is the emotional factor on the buyer's end. You are just a sale to the dealer. Be as informed as you can be on dealer's costs vs sticker price. There is a middle ground that works for both of you. Start around invoice and go from there. Be prepared to say no and go elsewhere if you don't like the way things are going.

 

Ahh the Ol "whats your budget question" almost as annoying as the ol "I'm interested in buying a Ferrari what have you got question"...........

 

Out the door i.e final price after all is said and done. Tell them you're a cash buyer and go from there.

 

I always know what I want to buy before I go the dealer and just focus on that. That way I know I can afford it and it's just a matter of getting the dealer to a reasonable price. The "budget" question doesn't come up.

For daily driver type cars, I usually start at edmunds.com and with my brother, who's a sales manager at a large dealership, to figure out invoice, interest rates, etc.