Used car negotiation: Walking away and coming back
 

I'd like a little bit of advice from friendly RS'ers. :)

I went to a dealership the other day and test drove a used car I was interested in. I liked it and then I sat down and gave the salesman what I thought was a lowball offer. (30% off the asking price) After about 10 minutes of negotiation (me threatening to walk out), he eventually caved and accepted an offer a couple of hundred bucks above my initial offer.

However, during the course of these negotiations, I got cold feet because I felt that I was still offering too much for the car. (I will also admit that I didn't think the negotiation would be so easy and quick which also gave me second thoughts.) I told the salesman this and I walked out. He called me the following day and I told him that I still could not accept the offer on the table.

I am still interested in the car and I would buy it, but at a lesser price. Did I screw myself here? Should I work with a different salesman? (the person I dealt with wasn't all that pleasant)

Something to consider is that the car has been on the lot for at least 4 months (based on when the dealer made its own inspection) and that they've lowered the price once already since it's been on the lot.

what car? year? mileage? price?

So you lowballed him, he basically accepted and you walked out because you don't think you lowballed him enough?

Why not tell him what you want to pay and see if he can meet it or come close?

I'm sorry, but I'm not comfortable with divulging those details publically lest someone else try to make a deal on the car.

I think I have provided enough information for someone with negotiation experience to offer some advice, or to tell me that I'm a complete idiot.

In a nutshell, yes. (and after reading your take, I can't believe that I did this.)

I will probably take your suggestion.

you offered 30% off..... and they basically accepted? wtf how cheap was this damn car.
With a $20,000 car, thats $14,000.....

Contrary to popular belief, not every car is marked up as much as for example store products.

Just find a price that you woudl be confortable paying, compared to the prices of other similar models on craigslist/buysell. And if they accept, then good, if not then its too low.

well its been on the lot for 4 months so unless its a high end car the salesman probably wants it out of there. But 30% off the sticker is pretty IMO.

Based on my research of the Canadian wholesale value for the car, I have a reason to believe that the initial asking price was marked up close to 70%.

The car was a trade-in and the dealer could have given wholesale, or maybe even 10-15% below wholesale - I don't know. But, I understand the "WTF" reaction because I really should have taken the time to figure out a price I was willing to pay. I was also carried away in the speed at which the negotiation was going as it's been a long time since I've purchased a car.

based on my 6 years at various car dealerships, working in sales, and now appraising/taking in trades on a daily basis, as well as setting pricing points for used vehicles. I will tell you this much. Unless the car you were looking at is under 2-3 grand, it was most likely not marked up 70 percent. That woudl mean if they bought the car for 10 grand, they woudl advertise it for 17. Don't get me wrong, there are places who do this, but they are very easy to spot. Especially when they are 4-5 grand more expensive than anywhere else.

If the vehicle you are look at is under 25,000 I can almost gaurentee you that it is not marked up more than 3-4 thousand. I have 35 used vehicles in stock right now. The mark up ranges from as little as -500$(yes negative 500) to as much as $3500.

If you want, pm me more information on the car, I will check book value on it and what it is actually worth for you. Keep in mind they car salesmen are here to make money, just because they paid 5 grand, doesn't mean you can. Its a business, money must be made to continue with the company.

Well, you could provide those details without providing the location of the dealership...

Have you considered that they could possibly be taking a loss to get the unit off the lot?

You will never know the true cost of the vehicle. Just pay what you are comfortable paying for that specific vehicle rather than focusing on whether or not you grinded the last penny out your salesman.

Kev

Edit^ wow you kinda beat me to it.

In all honesty, this is most likely what happend.

Car is sitting for 4 months.
You come in a lowball.
Sales person asks sales manager what he thinks.
Sales manager says "Fuck it, its been here for a while, we'll take a hit on it."

Its better for them to lose 500 bucks on it, then the value start to depreciate even more from it sittign there. Every 2 months a new Black Book is released with updated values. This means twice already the value has technically gone down on the car from just sitting there.

i agreee 100%:thumbsup:

Yes, and at some dealerships, if the vehicle sits for a certain period of time they will write the cost of the car back and expense the loss.

There are so many variables in the business. If you think it's a fair price and the car checks out to your standards then buy it.

Save the lowballing tactics for Revscene and night market.

Kev

^exactly. I'd rather pay $1000 more for a civic that I know is well maintained and will last me.

and I didn't know about lowballing at the nightmarket lol.... i just bought a bunch of Iphone cases and paid what they said

To be honest, it doesn't sound like you're much of a pleasure to deal with either. You already "low-balled" them with a price that you must have been ok with, and they took it, and you still gave them a hard time because they were trying to make the deal as easy as possible?
Would you be happy if they gave you a hard time?

If it's a Kingsway stealership, be thankful that you screwed up, and never bought the car. Also, if it is a used car lot, regardless if it's on Kingsway, get an inspection done yourself!

^ I'm at a dealership on kingsway :( lol

Maybe I should give my customers a harder time negotiating.
Seems like the salesman is pretty good because he made it really easy. Do you prefer a salesman that is super greedy and reject your offer numerous times and waste hours of your time? I hate this. You shouldn't make an offer unless you were willing to pay it.
Because if he accepts...and you're not ready, you shouldn't of been negotiating a price anyways.

me too :(

^ lol we are both scum

Buying a car is a big deal for most people.. but for fucks sake, don't make an offer unless you are willing to make a deal.

Salesman: Price is $20,000.
You: I'll take it for $14,000.
Salesman: Umm. Okay, deal for $14,000.
You: Nevermind, $14,000 is too much.

How lame is that?

Now, let me ask you something about the salesman.. when did he become unpleasant - when you met him, or when you offered 30% less than the asking, or when he accepted your offer, and then you walked out?

I'm sorry but when a customer comes in and expects me to sell him something and not earn a living while doing so, I'm not going to be in a good mood either.

Now, if the vehicle has been on the lot for 4 months, it's definately old stock and needs to go. They obviously DID have it overpriced, otherwise it would have sold sooner. The price you are willing to pay may be a little closer to what it's real market retail value is, but again, you need to figure that out +/- a few hundred bucks, before you start wasting a salespersons time.

I talk to a lot of people every month, and I don't sell *a lot* of cars, but 99% of the people I sell too are 100% happy. There are always a few people that I either simply do not 'gel' with or people that simply cannot be pleased no matter what.

If you are the former, maybe talking to another salesman would help - but bear in mind - how would YOU feel if you spent X hours with a customer, came to a deal, and then he came back and bought the car from another salesman instead?

^ where do you work??

The Ford store in North Van.