Negotiating with car dealerships by fax machine has become an outdated technique because of the popularity of the internet and email. However, it can still be very effective in getting you a great deal on a new car. Dealerships still periodically receive fax requests from potential car buyers and they still look at them as an opportunity to sell a car.
The short answer is yes. The long answer is the internet and email have turned fax negotiating into the “VCR” of negotiating a new or used car’s price. It all comes down to the speed of modern technology and the fax machine is just not as fast as email.
I highly suggest you contact dealerships by email since the technique is much faster and more up-to-date with today’s technology. You’ll also have a better chance someone will respond to you promptly and your request will not end up in the trash.
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At one time negotiating prices with a car dealership by fax was the best way to get huge discounts on new and used cars without ever having to step foot into a car dealership. Negotiating by fax is basically doing the same thing as you would through email, just slower.
A couple of problems with using a fax machine to negotiate a new car’s price is taking time to track down the dealer’s fax number and knowing if it will ever get into the right person’s hands.
Fax machines are very busy in a dealership, people are always faxing or receiving something. You don’t want your fax to be scooped up by one of the accounting ladies or service personnel. Not recognizing what it is, your request may be discarded unintentionally.
As long as your fax request gets in the right hands you can still receive a very good deal. In this section, I’ll show you the most effective way to format a fax letter and how to use this technique to negotiate the lowest price on your next new car.
There are a few things you’ll need before beginning this process. You will need a fax machine, the car dealership’s fax numbers, and the vehicle information in which you’d like to buy.
Pick out the car you want to buy
The first thing you want to do is pick a vehicle out you’re interested in. You can go to a car dealership when they’re closed and write down the information or gather it from online automotive listing sites such as Ryde Shopper and Motor Trend. You will need the year, make, model, and vehicle identification number (VIN). You will also need the dealership’s fax number.
The best online car buying sites have made the fax contact technique outdated because of their ease of use. You can easily get free new car quotes delivered to your inbox and then use them to negotiate an even better price between dealerships in your local area.
Find the dealership’s fax number
You now need the car dealer’s fax numbers. Call the dealers within a 50 to 75-mile radius of you that carry the vehicle you want to purchase. Ask the receptionist for the fax number the new or used car sales managers use. You will also want the manager’s name over the department of the type of car you want, new or used. This will make the fax more personal when received and make the manager more inclined to get a response to you quickly.
Sometimes there are several fax machines in a car dealership. You want to make sure your fax goes to the sales department or internet department, whichever is applicable. If your fax ends up in a different department, like service or accounting, it may be thrown in the trash and lost forever.
RydeShopper has one of the largest new car dealership networks in the world. Select the make and model you’re interested in and they will instantly search clearance pricing within your local area. Don’t forget to select as many dealers as possible to increase your chances for the greatest discounts and savings.
Edmunds is one of the oldest and best new car research and review sites on the internet. Their huge dealer network allows you to shop, research and compare millions of new cars so you can find the exact vehicle you're looking for.
MotorTrend is one of the best kept secrets on the Internet. Best known for their automobile magazine, MotorTrend has a vast dealer network across the nation. Their referral service is 100% free and there’s no obligation to purchase. Just pick the vehicle you’re interested in, select local dealers, and receive discount pricing.
CarsDirect has been in online vehicle research business since 1998 and has all the right tools to help you find your next car, truck or SUV. They offer a no-hassle experience from configuring a car to making the final purchase. You’ll find your next car quickly and easily.
It’s now time to type or handwrite your fax requesting a price quote on the vehicle you’re interested in. You will want to be short, sweet, and to the point. You can use my templates below if you’d like. Make sure you personalize the areas to meet your needs.
Dear [Sales Manager’s Name]
My name is [First Name Only]. I’m looking to purchase a new vehicle within the next 3 days. I am contacting several dealerships in the local area and will purchase a vehicle from the dealer who provides me with the best-discounted price and customer service.
Will you please provide me with your best price for a [year] [make] [model] [trim] [VIN if applicable]. Please be very specific in your response with any applicable fees and add-ons such as destination fee, doc fee, splash guards, dealer added options, etc… I will be making my decision based on the lowest “out-the-door” price, everything included other than TT&L.
My color choices are [state color choices here]. Please provide as much information as possible on your available cars including the VIN so that I may make an informed buying decision.
Again, I’m interested in acting quickly on my purchase and I’m fully prepared to give the dealership I buy the vehicle from a perfect 100% on their customer satisfaction survey. I will also be doing all my service and preventive maintenance with the dealership I buy my car from.
Yours truly,
[Your name]
[Your fax number]
Send the above fax letter to every car dealership on your list, preferably in the early morning, before 10 am. If you don’t get a response by 2 pm, resend the fax.
Make sure the quotes match the vehicle you’re considering and you’re comparing apples to apples. Once a dealer responds to you, send dealer fax template #2.
Dear [Sales Manager’s Name]
Thank you for providing me with a price quote on the [year] [make] [model] [trim] [VIN if applicable]. I really prefer to buy the vehicle from your dealership because your history of great customer service by your quote takes you out of the race.
As I stated before, I am prepared to give a 100% CSI score to whomever I buy my new vehicle from and I will be servicing my vehicle at your facility also.
If you’d like to review your numbers and fax another quote today, I’d still consider it.
Yours truly,
[Your name]
[Your fax number]
The above fax will stroke the manager’s ego a little and you may or may not get a return response with a lower price. The dealer may send you a fax back that tells you there is “no way” another dealer beat their price and demands you tell them the price you were quoted before they’ll give you another quote.
This is a negotiation technique used by many dealerships to get you to tell them the price you’ve been quoted. DO NOT GIVE THEM A PRICE! Respond to the dealership with dealership fax template #3.
Dear [Sales Manager’s Name]
By how you have responded, I am very satisfied with the price the other dealer has quoted me. Put yourself in my shoes. If I give you the other dealer’s quote, you’ll just cut it by $50-$100 and then I’ll have to go back and check with him and he’ll cut your price by a few $100. All that does is turn into a back-and-forth nightmare for me.
I would also like to remind you I will be servicing my vehicle at your facility and I’m prepared to give you a perfect 100% score on your Customer Satisfaction Index Survey.
All I know is, your dealership has a reputation of having outstanding customer service and I would prefer to buy my vehicle from your dealership. If you’d like to fax me another quote, I will definitely look at it. It’s up to you.
Yours truly,
[Your name]
[Your fax number]
Again you’ll either get another quote from the dealer or not. If you don’t get another quote, you’ll know he gave you the best price he car no. Again a dealer WANTS to sell you a car and won’t risk losing the deal over a couple of hundred dollars. Keep playing dealers off each other until you stop getting responses.
The last car dealer that responds with the lowest bid, WINS! Pat yourself on the back, you just got an OUTSTANDING price by using the fax technique.
Now all you have to do is go to the dealer, test drive the vehicle, and do the paperwork. However, now is not the time to let your guard down, there are still many ways a dealer can take advantage of you. One of those areas is during the finance process of buying a car.
