Originally Posted by larryziegler
Anytime you involve a salesman, you also have to factor in his commission on the sale, which doesn't help you achieve the lowest bottom line possible. I have ALWAYS talked price (and never entered into any relationship with a salesperson - the kiss of death to your deal, IMO) with the fleet manager or sales manager (who is paid a salary and bonused on sales volume) who also has the authority to sell the car at any given price (thereby elimination any salesperson's commission). The finance manager's job is to upsell additional items, such as extended warranty, gap coverage, etc. on top of handling inhouse financing that he/she arranges (and may receive income on) on the already agreed sales price. They will try to hard sell you on this stuff! Keeping a minimum number of mouths to feed during this process and your knowledge of invoice and holdback data will help you achieve what you are looking for.
Also a good thing to ask is are they on comission or volume? A volume salesperson will go to invoice or lower to make the sale. They need #s of cars sold, not comissions. I got my wife a 2007 Honda Odyssey at invoice the 1st week they were out. Some dealers laughed out lod at me when I asked if they would go to invoice.
Secondly negotiate the intrest rate. He said I Qualified for 7%. I asked then abouot an extended warranty. I called service at another dealership and asked what it cost to replace the power door motors. Abbout $2K each. Then goto warranty direct.com,. you can get a quote for a warranty there.
Next I told him I would buy the extended warranty if they lowered the intrest rate, and sold me the warranty for 1/2.
Guess what, he did. They will quote you an intrest rate above what youa ctually qualify for, and they will still make money there. Then he still made some money on the warranty, but I am covered for an extra $800 BtoB and 7years 100K.
Remember you can always walk away and say thanks, but no thanks. For them it is a waste of their time not to make the sale with you if they could have made it with someone else.
Have fun, I do!