tips for beating the dealer

[Bobman]

Hi there, about to sell my 2004 Mk V GTi (Red, 5dr, DSG) to get a manual 2007/8 one or 2009 Mk VI and The Doc mentioned that NOT p/x’ing might help me negotiate an extra grand off from the dealer on the car I'm buying... wow, did not know that! 

It got me thinking – what is the best advice on buying from a dealer, especially on Finance? Tried searching the forums, but no joy.

Anyone got any top tips for:

- best way to negotiate with the dealer – especially on APR % (or ‘new’ car cost / part-ex value)
- are upgrades a good thing to negotiate on ("throw in a new Sat Nav, Mr Dealer, and it's a deal")
- playing dealers off against one another
- do extras like Sat Nav, MFSW and Xenons etc add much value to a car?
- best time to buy from a dealer (month end? And I heard Sundays were best?)
- any other good reasons to p/x OR not p/x (i.e. regards minimising the price they’ll then accept on the new car)

Apologies if there's already a thread like this - pls shout if so. Many thanks.

And obviously I did some Googling too – the sites below are the best I found – but any UK/ VW-specific, real-world insights would be great.

http://beatthecarsalesman.com/school/step5-10.html
http://www.carbuyingtips.com/car5.htm

cheers.

[barrym381]

would a bank not offer better interest rates on a loan than finance

[Bobman]

probably, but I presume (rightly / wrongly?) that the bank can't give me the flexibility of final options that VW 'Solutions' can - i.e. at the end of the loan term: pay off the outstanding amount and keep the car, hand the car back, or use the car as a deposit on something else?

be delighted to be told I'm wrong!

http://www.volkswagen.co.uk/buying-guide/solutions

[barrym381]

you could offer the bank an early settlement an most will jump at it

[Seanl]

In my experience, used cars with optional extas dont fetch any more than without, with the exception of satnav. End of the month can sometimes work in your favour as targets on numbers are actually more important to profit margins. If they have met targets though they won't budge. If neither of you will budge, walk away but leave your details. I've had a dealer call me a week later saying he would accept what I'd offered, but I had already bought by then  (mk5 gttdi). Be prepared to travel to other dealerships after looking online, they will say than can deliver it to your local one, but there will be hidden premiums. Do masses of research into common problems and check for recalls, if you find any  suggested probems that could occur and they are not documented, point it out. Also point out absolutely everything u find at fault, from scratches even if their small, (tell them You would HAVE to get it touched up, to different tyres and wear patterns on them, to work carried out at non dealership approved garages in history etc etc..... You may feel a bit of a horrible sod after, but it's your money, and the more brash you are about everything, the more you can knock off. Salesman don't know anywhere near as much about specific cars as they make out. A good salesman is confident though. You need to be confident, and a little undermining. If he says something wrong, correct him, and patronise him by explIning it as you would a child. You will then have him in your pocket. These work better with a private seller obviously, but if a trade seller wants a sale, he will come round to your way. Good luck. 

[Bobman]

thanks guys, good advice. Having already been told that a circa 14% APR was a 5% APR (as opposed to a 5% FLAT rate), I'll need to keep my wits about me.

Good advice so far has been to let them know you will finance (so they know they can make money on that), then focus on the price of the car and nothing else, and keep your monthly payment budget firmly under wraps.

cheers

[DOA]

A lot of places make a lot of commission from finance and the rates are normally no better than buying on a credit card which most people would find a stupid action. As for flexibility, look at car loans, you can get all sorts of options on them but I still prefer a standard loan, just check that you can repay in a lump sum for no fee as some places do charge you for giving them their money back lol.

Personally I find the best way to buy a car at the best price is to sell your current one if you can and get finance from a bank/building society (I would never buy on finance!). If you cant sell your current car I have found it still works out better to sell your current car to a dealer who actually takes the kind of car you have and then take that money to the dealer you will be buying from. In my experience I have found that a lot of places dont actually like part ex's unless what your offering is their bread and butter as they either have to carry the wrong type of stock or run the risk of losing money by auctioning your car off though it depends on the place. Theres also nothing worse than seeing your old car on the forecourt at a 2k premium over what you part ex'd it for lol.

[RandomJord]

Take me with you and pay me £200

I actually used to that a few years ago, no i still do for friends and family. Absolutely bumming dealers is a hobby of mine.

Oh an always go in the last hour of business on a sat or sunday, salesmen will do silly deals so they can grt their hair gelled for a saturday night at bar risa!