Automotive

Success of In Store vs. Online Price Negotiations

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  • Jul 9th, 2020 8:54 am
[OP]
Newbie
Oct 18, 2013
60 posts
47 upvotes

Success of In Store vs. Online Price Negotiations

Reading many threads about the various methods to negotiate the price of a car. CoVid has probably caused a change too. Really appreciate comments from those working in auto sales too. Generally, which method is preferred and successful? Pros and Cons?

Examples are in store Dealership , email bombing and on line negotiating.

Myself, I'm "Old School"... type of vehicle, market pricing and availability. Then visiting the dealerships for test drives and good ol person to person negotiation with my credit card in one hand and ready sign when its right. Willing to learn something new if needed.
15 replies
Deal Fanatic
May 4, 2014
5133 posts
6845 upvotes
Toronto, ON
maryray wrote: visiting the dealerships for test drives and good ol person to person negotiation
Unless you are a car salesman, you are always in a disadvantageous position dealing person-to-person.
Deal Fanatic
Jul 26, 2007
6561 posts
4092 upvotes
Toronto
Negotiate online or by phone.

There is a reason why old school gets suckered in coming into the bm shop. So that they can tag team you for hours and wear you out. Make you sign and leave a deposit.
Deal Addict
User avatar
Jul 20, 2016
1134 posts
1143 upvotes
Toronto
With COVID even the shady businesses have to be willing to negotiate online or by phone, which makes the process much more efficient for us consumers.

The whole point of having you come in is to stall you and wear you dowm until you sign. Which is why in any sales negotiation, the ability to walk away is very powerful. Also explains why stuff like union negotiations are so tough and nasty , neither side can fully back out.

Dealers would argue against online negotiation because they are afraid you're not serious or they don't want you to shop their prices around. Neither are really valid in today's society, pandemic or not.
Member
Sep 28, 2009
339 posts
203 upvotes
Never sign on the first visit. If they say that you must accept the offer on the spot, tell them you'll think about it. 90% of the time they will give you the same offer next time, if not better.
Jr. Member
Jan 2, 2014
106 posts
38 upvotes
Oshawa
Email bomb is the way to go. I emailed 40 dealers on Saturday night, by Monday’s early afternoon I had 20 quotes and went with the lowest one, simple as that. I was firm in my email that I didn’t want any upsells or extended warranties. A few dealers tried to get me to come in or even guilt me for doing this, if that’s their attitude over email imagine what person to person negotiation is like. It’s your turf vs theirs the choice is yours.
Newbie
Dec 5, 2009
31 posts
25 upvotes
Toronto
Email bomb. Don't even walk into dealership until you have a number that you are happy with.

Don't give the dealerships the time of day. Heck, don't even trust the dealership that says they have upfront pricing/best price to everyone.
[OP]
Newbie
Oct 18, 2013
60 posts
47 upvotes
Helping my friend look for a car.... I'm new to emailing a few dealerships but most want you to come into the dealership while only offering small discounts online. My experience with person to person negotiations has worked well for me in the past.

Emailed Toyota, Hyundai and Nissan dealers for mid-sized sedan. What kind of discounts have you gotten during on line negotiations?
Newbie
Dec 5, 2009
31 posts
25 upvotes
Toronto
maryray wrote: Helping my friend look for a car.... I'm new to emailing a few dealerships but most want you to come into the dealership while only offering small discounts online. My experience with person to person negotiations has worked well for me in the past.

Emailed Toyota, Hyundai and Nissan dealers for mid-sized sedan. What kind of discounts have you gotten during on line negotiations?
Go to the unhaggle thread. Request the make/model/trim that you want.
request-free-dealer-cost-invoice-price- ... 54621/881/

Spend some time in recreating the build/price tool for these auto makers. Figure out what the payments should be based on a 0% mark up. Email bomb your math and the payment that you worked out to every dealership in the GTA, asking them to earn your business. Using online only, I got them down to 2% mark up over invoice. By calling into specific dealerships that I had a previous relationship with (like I got a car from them several years ago), I got it down to +$300 over invoice.

I then called the highest volume dealership in the province, and said I have this deal, can you beat it. They did, and I got a car below the invoice price that unhaggle provided me.

Even at invoice, they're making money hand over feet. There's holdback, unit incentives, specific model incentives. Heck, you think people are buying mid-sized sedans nowadays? Everyone is buying RAV4's, Pallisaides, and Pathfinders, not Camrys, Sonata's, and Altimas.
Deal Addict
Sep 30, 2011
2107 posts
741 upvotes
Depends,
In person deal could be better in a way both of you seem more seriously than just an email. Car sales need to push ten cars a month to make a living, mostly happen at weekends. Now you waste him an hour slot in test drive and all that bs, at least you know he has one less customer to sell to. Lol.
Email is more cost effective, at least you can filter off those cocky jerks. Once a time a hillbilly town dealership tell me absolutely no discount, so at least save my time to see the Billy.
Don't be fooled by invoice employees price now, these numbers are all made-up. When internet allow everyone to get those number for free, it should tell you those number are useless. Do more homework in the car specific forum, and YouTube before you go.
<signature removed>
Deal Fanatic
User avatar
Jul 4, 2005
7791 posts
1622 upvotes
Ottawa
How does one test drive a car with this strategy? Do you just “sabotage” a dealer with a test drive?
Newbie
Dec 10, 2012
70 posts
47 upvotes
Mississauga, ON
jeeva86 wrote: How does one test drive a car with this strategy? Do you just “sabotage” a dealer with a test drive?
First Test drive all the vehicles you have in mind. Shortlist to one vehicle you plan to buy and then start negotiating via email or over the phone. Call/ email multiple dealers nearby.
Atleast thats what I did.
Deal Fanatic
User avatar
Jul 4, 2005
7791 posts
1622 upvotes
Ottawa
gaganmohal wrote: First Test drive all the vehicles you have in mind. Shortlist to one vehicle you plan to buy and then start negotiating via email or over the phone. Call/ email multiple dealers nearby.
Atleast thats what I did.
chances are that the dealer you used for test-driving isn't the best price though? so you wouldn't even bother e-mailing them?

btw, does this trick work on "luxury" brands Acura/Lexus/Inf? Their dealership count is much lower
Newbie
Dec 10, 2012
70 posts
47 upvotes
Mississauga, ON
jeeva86 wrote: chances are that the dealer you used for test-driving isn't the best price though? so you wouldn't even bother e-mailing them?

btw, does this trick work on "luxury" brands Acura/Lexus/Inf? Their dealership count is much lower
How would you know that particular dealer is offering you best price without contacting multiple dealers?
I never negotiate on the spot. Just test drive, ask about incentives/ promos, finance rates etc and leave. Repeate for next vehicle. Go home and figure out which car you like the most.
Yes this strategy works for luxury cars too. MB, Audi, Porsche etc.
Member
User avatar
Jan 8, 2015
211 posts
202 upvotes
Toronto, ON
These guys offer a very informative video into how to email dealerships when you're in the market for a new car!

[OP]
Newbie
Oct 18, 2013
60 posts
47 upvotes
maryray wrote: Helping my friend look for a car.... I'm new to emailing a few dealerships but most want you to come into the dealership while only offering small discounts online. My experience with person to person negotiations has worked well for me in the past.

Emailed Toyota, Hyundai and Nissan dealers for mid-sized sedan. What kind of discounts have you gotten during on line negotiations?

My update to this thread as just purchased a 2019 Nissan Altima SV AWD.

We narrowed the decision to an Altima after looking at reviews and pricing (AutoTrader) and chose the Altima SV because of its numerous standard features, comfortable ride, roomy interior and AWD. Its rare to find a sedan with AWD.

The past few days we emailed 8 local Toronto area dealers (all were new car dealers) for best pricing. Got 5 email replies with offers of $300-500 off the advertised price. The others contacted us by phone and suggested we come in for a test drive and negotiate better pricing in store. CoVid times, so made appts. with the 3 salespersons who contacted me by phone. Also, I recently bought my CoVid CUV in late Apr. communicating via email and closing the purchase $ at the dealership outdoor lot. (Pre-registered 2019 Nissan Rogue SV FWD with 75km for $21K) Nissan haters please calm down.

Yesterday, success on the 2nd appt. for the Altima and spent around 1.5 hrs on a test drive along with negotiations. We meet the salesperson (in our case the Sales manager also came over to close the purchase) and you really need to get a visual and verbal sense of each others body language on offers. Difficult to do this over the digital world.

Purchased a like-new condition 2019 Nissan Altima SV AWD with only 4500 km for $23200 + taxes and license. Asking was $25600 which was the average list on Autotrader. I think new list is around $33K.

Just sharing my recent on-line vs. in store adventures. I appreciate the messages on this thread, however no one offered details of their recent purchase for comparison purposes. So in my "Humble" opinion Ol School face to face negotiations still works best for me.

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