We have a KBB app on the I-phone and plan on using it to do some negotiating. I am curious if the suggested retail value is the bottom line that I could ask for, because oddly enough it is usually the same as the "internet special price" the dealers post on their websites.
I guess my argument is that I could buy it from a private party for xx dollars less, so that would be a good place to begin the negotiation. Here is an example-
07 Acura MDX with 14k miles, fully loaded. Internet price is $35,750 and KBB suggested retail is $35,450. KBB says the private party value is only $30,xxx.
I suck at negotiating, so any input would be appreciated. I cant wait to get this over with...
-tony
kbb values are arbitrary numbers assigned by a bunch of people in a room scouring the internet and autotrader magazine trying to determine what the average asking price is. kbb values are determined by what people are selling for, and not the other way around. straight from the mouth of someone who works for kbb.
KBB numbers are high. A better source would be Edmunds.com or the NADA red book.
the dealer payed less than, or as close to whole sale (which is in the ball park of what a low price from a private seller would be) as they could for the vehicle.
they will try and sell it for as close to high retail as they can. if pushed, they will claim to have done some nonsense, like a 10 point inspection. then they will whine about their overhead costs.
I am car shopping too.
My first question is always "whats the cash price?"
You will usually get a nice bump down from that.
If you tell them I can buy it from a private person for X they will probably tell you to go buy it from a private person.
If the cash price is 32k and you have 30k to spend offer 28k.
The salesmen wants to move the car he will try to work with you.
Quote from: corey on October 31, 2008, 11:26:16 AM
kbb values are arbitrary numbers assigned by a bunch of people in a room scouring the internet and autotrader magazine trying to determine what the average asking price is. kbb values are determined by what people are selling for, and not the other way around. straight from the mouth of someone who works for kbb.
Thats great info. Good to know what the source of those numbers really is. Now if I could only convince my wife that the Porsche Cayenne S that we test drove would be a good family car- I'd be set!
Like Howie said, Edmunds.com is good as well.
But, don't rely on just one source though. Get values from as many places as you can find...local especially...like what people are asking on autotrader (if looking used), different dealers, etc. Preparation for a negotiation should take 3-5 times the length of the actual negotiation, so do your homework. you should know a resaonable value...and be able to spot a good deal (one of the harder parts of negotiation).
Based on your homework formulate two values. 1) What you want to pay for the car, and 2) The MOST you are willing to pay. Then, start the negotiation a bit below #1 (not too far as you lose credibility, but a reasonable amount). Don't even consider the asking price...if you start negotiating based on that you're at a disadvantage immediately. Also, NEVER exceed #2. Be prepared to just walk away.
Don't let the car dealer go back and forth a bunch of times to talk to his/her "manager". This is a negotiation ploy which forces you to negotiate with 2 people...putting you at a disadvantage. I usually tell them they can leave once to confirm a deal...when they leave the second time I'm out the door. It works...and the negotiation will go quickly.
Dealers writing numbers on a piece of paper is also a negotiating ploy. Statistics have shown people have a harder time rejecting something written down. Nothing to do...just recognize this and don't let it affect you.
Don't focus on price alone. If the dealer won't budge anymore start asking them what else they can offer (service, parts, detail current car, etc.) Whatever has monetary value to you...get creative. This may not apply much to a used car though.
Lastly, don't feel self conscious or guilty about "low-balling" them...lots of people feel that way (including me when i was younger). Remember, their sticker price is "low-balling" you...just in the
opposite direction.
I think negotiations are fun [evil]...but it took a while to get there.
Sorry it that's more info. than you wanted...I based my response on:
Quote from: Stu Pedasso on October 31, 2008, 11:22:08 AM
I suck at negotiating, so any input would be appreciated. I cant wait to get this over with...
I like to sell at KBB values, but buy at NADA values (or less). ;)
I ended up getting a steal of a deal on a new 08 MDX. $34,200 WITH 2.9% financing. Its the base model w/o Nav and power liftgate, but I didnt think that was worth another $75 a month on my payment.
According to NADA I got a good deal: http://www.nadaguides.com/default.aspx?LI=1-20-37-5056-0-0-0&l=1&w=20&p=37&f=5720&s=293458&vt=new&m=1187&d=17541&y=2008 (http://www.nadaguides.com/default.aspx?LI=1-20-37-5056-0-0-0&l=1&w=20&p=37&f=5720&s=293458&vt=new&m=1187&d=17541&y=2008)
Quote from: Stu Pedasso on November 03, 2008, 08:49:45 AM
I ended up getting a steal of a deal on a new 08 MDX. $34,200 WITH 2.9% financing. Its the base model w/o Nav and power liftgate, but I didnt think that was worth another $75 a month on my payment.
According to NADA I got a good deal: http://www.nadaguides.com/default.aspx?LI=1-20-37-5056-0-0-0&l=1&w=20&p=37&f=5720&s=293458&vt=new&m=1187&d=17541&y=2008 (http://www.nadaguides.com/default.aspx?LI=1-20-37-5056-0-0-0&l=1&w=20&p=37&f=5720&s=293458&vt=new&m=1187&d=17541&y=2008)
Very cool. I like those MDX's.
Congrats! [thumbsup]