An extremely effective technique is to negotiate with car dealerships by email. It allows you to control the situation by having car dealers compete against each other, instead of with you. Negotiating by email can be done from the comfort of your computer, tablet or smart phone. Keeping your from having to drive from dealer to dealer spending hours haggling over price.
Dealers know when you're automobile shopping online you're inquiring with several dealerships and most likely looking for the one that's going to give you the best price. This forces them to aggressively discount the vehicle to you or risk losing your business to their competition.
The theory is once you receive your free quotes. You're suppose to pick the lowest one, go to the dealer, and drive away in your new car. This system works and it's a great way to avoid confrontation with front line salespeople and get a very good deal on a new car.
In this section I'll show you how to "tweak" the system and MAXIMIZE your advantage of getting a "very good deal" to getting an AWESOME DEAL!
Before Contacting a Dealer by Email
Before making contact with a car dealership by email you'll need a starting point for your negotiations. You can get this information by requesting free no-obligation price quotes from online new car listing companies.
You'll want to get quotes from at least seven different dealerships. This will give you an idea of the popularity and demand of the vehicle you're considering and which dealers in your local area are more willing to negotiate.
The quotes you receive will also have an individual's contact information in case you have any questions about the vehicle. You will want to keep this information for later use.
How Car Buying Websites are Suppose to Work
The general idea behind automobile new car price quote sites is for you to submit a request for a quote, pick the lowest one, and go to the referred dealer and buy your new car.
90% of the time when you receive a discounted price quote from an online company such as Car Clearance Deals, MotorTrend, Edmunds and CarsDirect it's a pretty good deal. The customer is happy with the price quoted, and goes to the dealership to buy the car.
However you're not looking for a fair price this time...You're looking to buy your next car for an AWESOME PRICE!
Negotiate By Email to Get a Better New Car Price
The following email technique works, I've personally seen this and many variations of the following come through my dealership's internet department. The dealer is backed into a corner and the only way out is by discounting the car's price or bowing out. Feel free to copy and paste the following letters for your own personal use, make sure you change the names of course.
Although you put "contact preference - email" when submitting your quote requests, some dealers may still call you, don't worry; they're just trying to get you to come to their dealership first. If you're not comfortable talking to salespeople on the phone, answer the car and tell them, "you would prefer to correspond through email only." Politely ask them to respect your wishes and send you an email. The last thing they want to do is lose you as a sale because of a phone call.
Visit my section on how to calculate a fair profit new car offer to compare the quotes you receive with the new car offer you've figured. This will give you an idea of how much room there's left to negotiate on the vehicle your considering.
At this point, you've already received your new car price quotes from at least seven different dealerships. If you haven't done so, use Car Clearance Deals and Edmunds and get them now. Weed through the quotes, placing duplicates or bad quotes to the side. Once you have them narrowed down, we can get started.
You may or may not get a call and/or an email from a dealer. If you're not comfortable speaking with them on the phone, politely tell them, "you prefer to do business by email and will not do business with them unless they respect your wishes." Most of the time the dealer will contact you by email, there may be a short letter that accompanies the quote that looks something like this:
No matter what the quote was, you're going for a better deal. You should always respond to this call or email the exact same way as below. (cut and paste if you'd like):
Send the above email to every dealer that sent you a competitive quote. If you don't receive an initial contact letter from a dealer, be proactive, find the email contact on the quote and send the above letter to them. Believe me, they want your business and you're setting yourself up for another round of price quotes with even deeper discounts than before.
You will continue doing this until all the dealers stop responding. Once they stop, you'll know you've received their rock bottom price.
Dealer's Insisting You Come In
Some dealer's will try and close you on the phone by asking you, "What price will it take to get you to come and buy the car from them today?" Be careful with this, the salesperson is trying to get you emotionally charged. You don't want to make a mistake and leave a bunch of money on the table.
Just be polite and tell them you're unsure at this time, because you're still taking bids from several dealerships in the area. If they'd like to send you another bid through email, it's up to them.
Some dealers may try to overcome your resistance by stating there's no way a different car dealer has quoted you a lower price and insist you show them proof. If this is the case, send the following email.
[OPTIONAL] After you've received your lowest price quote and the dealers and the dealers have stopped responding. You can "go-for-broke" with the below letter at an attempt for one last discount.
Personally, I'd only ask for something inexpensive like, window tint, pinstripe, floor mats, locking lug nuts, cargo mat, etc. You may or may not get it, but if you don't ask, you won't receive. These items are fairly cheap for a car dealership and they're commonly used to push a car buyer over that's sitting on the fence.
You'll either get another quote from the dealer or you won't. If you don't get another quote, you'll know the dealer gave you their best price in the previous email. Again, a dealer WANTS to sell you a car.
Last car dealer that responds with the lowest bid wins! Give yourself a huge pat on the back, you just negotiated an OUTSTANDING price. However, now is not the time to let your guard down. There's still many ways a car dealer can take advantage of you.
Now that you have a price, your next step is to protect yourself from finance scams by getting a pre-approved car loan first. Read my section on low interest car loans here.
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