Automotive

Need help on how to negotiate with dealership

  • Last Updated:
  • Oct 25th, 2019 7:01 pm
[OP]
Newbie
Oct 24, 2019
2 posts
1 upvote

Need help on how to negotiate with dealership

Hello all, I'm a 21 y.o student and this is my very first time to reach out to a dealership and buy my very first new car!! I'm excited to buy the new 2019 Nissan Kicks SR (Atlantic Area). I need help with what to do and how much do you think it's appropriate for me to deal with the new one? I've been researching on google of how to negotiate with car dealers but I also want to hear from you all who has more experiences than me. Thanks a lot!
18 replies
Deal Expert
User avatar
May 10, 2005
36189 posts
10335 upvotes
Ottawa
Do you have the money? Or do you need it financed by the dealer? The tactics are different for each.
If you have the money, walk in, tell them you are ready to buy today, with cash. If they do not give you a good enough deal, be prepared to walk out.
If you need to finance at the dealer, well, they kind of have it over you.

Go in several times to look. Make sure the same sales people see you. Take a paper and start writing things down, make it look like you are comparing. Then at the end of a month, be ready to make the deal. All dealers have monthly targets and that is when they are most willing to bargain.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Deal Guru
User avatar
Oct 5, 2008
14020 posts
8117 upvotes
Toronto
get the Unhaggle or CarCostCanada report and follow the instructions there.
Jr. Member
May 13, 2010
140 posts
61 upvotes
Best advice I can give, is visit a few Nissan dealerships to get pricing from them. I've found in my area that dealers will do anything to undercut another dealership near by. Play them off of each other. Dealer A can do this price, can you do better? Dealer B says they can do this price now, can you do better? Eventually one of them will throw in the towel, and you should have a decent price. Also, shop near the end of the month, as there are sales targets to reach, so they will certainly be more aggressive with their pricing towards the end of the month.
Good luck, enjoy your new car!
[OP]
Newbie
Oct 24, 2019
2 posts
1 upvote
@Pete_Coach I do have the money so I will pay like 2/3 of the price and finance the other 1/3. But I’m not sure which price is the best for buying the Kicks SR trim
Deal Expert
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Jul 30, 2007
29202 posts
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Toronto
looks like there is a $750 factory credit as well.
Deal Addict
Mar 3, 2018
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GTA
Negotiate with one price. The out the door price. The amount you would write a cheque for including all BS fees and taxes. Use that amount and go to different dealers offering the same car and package. Use one dealer against the next until you find the lowest bottom line amount. Don’t get hung up on specific fees. They will waive a fee to make you feel the deal is good but then they will make it up somewhere else.

Also do not buy the extended warranty, waxing, scotch guard treatment, rust proofing etc. It is 80% profit to the dealer. Just put the $2K or $3K you would have spent on an overpriced warranty in a bank and take a nice trip in 4 years.
Last edited by DaveTheDude on Oct 25th, 2019 10:04 am, edited 2 times in total.
Sr. Member
User avatar
Aug 16, 2011
964 posts
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NORTH YORK
RedQuangNL71188 wrote: @Pete_Coach I do have the money so I will pay like 2/3 of the price and finance the other 1/3. But I’m not sure which price is the best for buying the Kicks SR trim
Can you get a line of credit from your bank? If you can then do that over financing, this way you have leverage because now you are paying cash.
Deal Expert
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May 10, 2005
36189 posts
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RedQuangNL71188 wrote: @Pete_Coach I do have the money so I will pay like 2/3 of the price and finance the other 1/3. But I’m not sure which price is the best for buying the Kicks SR trim
The price will vary for sure but not as much as you think. If you can get the other third before you buy (from your line of credit at the bank or elsewhere), then you will have the upper hand and even get the cash discount many dealers offer. Information form the Nissan website, unhaggles, carcostcanada and others will give you a fair idea of what you can expect. Trying to get bottom line prices form dealers to be able to compare is not so easy and in many cases you will not.

There are other tangible factors to consider and the primary one is the dealership. How close to where you live? How good does the dealership look (cleanliness, waiting area etc). You will be tied to the dealership for at least the warranty period so it is important that it is not a long way away to get there. You are not tied to the dealership you purchase from but it does develop a customer/client relationship which can be valuable if there ever should be issues with your car..

This is very important, once you buy the car, end it. Do not come here or other sites and ask if you got a good deal (you will be told no). Do not get buyers remorse. Make sure you get what you like as you will have to live with it for at east 5 years.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Deal Guru
User avatar
Jan 9, 2011
10926 posts
13329 upvotes
Vancouver
Dress well. Get a haircut. Be pleasant and likeable. People are more likely to give you a deal if they like you. Never say that a car you want is priced too high or isn't worth what they are asking. Say that it's worth every penny of what they are asking, but it's just beyond your price range. Name your price and wait for them to come down. Leave yourself a very small amount of wiggle room to go up, but not much, and save this for the very end. Be prepared to to a lot of sitting and waiting. If you just sit and be patient and pleasant, the pressure is on them to either come down to your price, or just say no and ask you to leave. And dealers hate to ask you to leave.
Deal Expert
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Apr 21, 2004
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How much does the dealership take in with a cash purchase vs. finance? If they are taking the same profit, does it matter what the payment method is?
Deal Expert
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Apr 21, 2004
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DaveTheDude wrote: Negotiate with one price. The out the door price. The amount you would write a cheque for including all BS fees and taxes. Use that amount and go to different dealers offering the same car and package. Use one dealer against the next until you find the lowest bottom line amount. Don’t get hung up on specific fees. They will waive a fee to make you feel the deal is good but then they will make it up somewhere else.

Also do not buy the extended warranty, waxing, scotch guard treatment, rust proofing etc. It is 80% profit to the dealer. Just put the $2K or $3K you would have spent on an overpriced warranty in a bank and take a nice trip in 4 years.
Actually buy extended warranty (if taking a loan, maybe pay for it separately) if it will sweeten the car deal and then get a refund afterwards. :)
Deal Addict
Aug 24, 2011
4933 posts
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Toronto and London
How come no one suggested mass emailing the sales managers (individually, bcc etc)?
Member
User avatar
Sep 1, 2009
316 posts
252 upvotes
gta
How fast do you want to own your own car ?
LOC is faster.

Just write a cheque take a picture and send it to six dealership saying “any takers “

That’s all.
“I swear by my life and my love of it that I will never live for the sake of another man, nor ask another man to live for mine.”-John Galt 😎
Deal Addict
Jan 15, 2017
4009 posts
3481 upvotes
The first step to successfully negotiating is to do as much research on your particular model as possible prior to sitting with a sales person. Become familiar with all the options and additional features that you want. Go to Nissan's website and build the car with all the features that you want so you have a clear understanding of the exact cost if you were paying full price for it. It's amazing how many people come to this page with offers that are above the full MSRP.

You can sign up with sites like carcostcanada and unhaggle to get reports on the current offers and rebates that are available. These will also provide you with some idea of what type of discounts may be available. Just remember - no dealer is obligated to negotiate at all, but most will. You may be able to get the discount that these sites offer, you may be able to get less or even more.

The best advice is to remain calm and not get caught up in the need to buy it and sign the deal. If you need to time to think about it, say so and thank the sales person and tell him/her that you will be in touch. As it is your first time, I would suggest that you not make a decision in one day. Sleep on it. If you are feeling really uncomfortable about the negotiations, simply get up and leave. Don't put any money down in order to negotiate - it isn't necessary. Do not pass over your driver's license or credit card to negotiate - it isn't necessary. Yes, they need to see that you are licensed driver if you are test driving the car - they don't need to see it for you to simply negotiate.

Research the auto buying laws in your province. In ON, for instance, all sales are final so signing today and regretting it tomorrow is a problem for you.

Finally, contact an insurance company for a quote prior to signing the agreement to purchase. You don't want any surprises there after you bought the car.

Good luck.
Deal Expert
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May 10, 2005
36189 posts
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Ottawa
alanbrenton wrote: How much does the dealership take in with a cash purchase vs. finance? If they are taking the same profit, does it matter what the payment method is?
Actually, a dealer gets paid right away when he takes in cash. Financing (by the OEM) takes time to get through the process for payment.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Deal Addict
Oct 1, 2015
1354 posts
1630 upvotes
Barrie, ON
Don't be afraid to walk away. It's funny how many of them will call you back :) The last two deals I did for my parents were over email. So much easier then dealing with a salesman face to face.
Newbie
Mar 12, 2016
47 posts
23 upvotes
Toronto
RedQuangNL71188 wrote: Hello all, I'm a 21 y.o student and this is my very first time to reach out to a dealership and buy my very first new car!! I'm excited to buy the new 2019 Nissan Kicks SR (Atlantic Area). I need help with what to do and how much do you think it's appropriate for me to deal with the new one? I've been researching on google of how to negotiate with car dealers but I also want to hear from you all who has more experiences than me. Thanks a lot!
Don't buy a new one, get a used one 1-2 years old, You will save and will still be under warranty.

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