NewLoveForTheStang
Active Member
- Thread starter
- #1
Hi all Mustang lovers,
So recently I just placed an order for a new 2016 mustang for $550 below invoice (+ rebates that comes into play on delivery date) after countless hours of researching and negotiating over the phone prior to coming to my dealership. And I would like to share my experience on how I did it to help anyone who has not secured a deal. Also, I would like to note that this is my first time ordering, buying, and negotiating for a car so don't doubt yourselves if it's your first time. Anyone can do it.
- First thing you should do is sign up for TrueCar, Edmund, ect with a hard to find configured car(more on why the hard to find comes in play later) so that the dealers have your number and start calling you. By doing this, you get the upper leverage when they are contacting you, the dealers will know that your number is out there on the net so they are expecting a lot of other dealers calling you. With this in mind, they will try to win your business over other dealers as their main priority, instead of squeezing every penny out of you. Of course, you should be active in calling other dealers too while waiting for other dealers to call you.
- When you first start to talk to the dealers, you shouldn't let them know that you are planning on an order just yet. You should tell them your looking for a car with a specific hard to find combos of option so that they can't find any in their inventory (It doesn't have to be the options you really want, you should also check their inventory online if possible so u can better provide a requirement that they DON'T have). By doing this, you give them the impression that they are not being able to provide you with what you originally wanted. Usually they will try to ask you to factory order because that's the only way they can get your business if they don't have what you want. If they don't ask, you can always say that you've contacted other dealers and they are all offering you factory orders for invoice and below. Make sure to express that the wait time is the only thing that is bothering you but you are considering it if you're getting a great deal.
- Don't worry about ordering a totally different car color and option when they seal the deal with you, just come to the dealership and say that you've been configuring online and a lot of things are attracting you making you want to change your preferred options that you originally wanted. This is very normal and believable and it does not really effect their profit. That is why in the beginning you can and should say a different car configure that is rare and hard to find to gain leverage later.
- Do this with many dealers and see who is giving you the best deal. Then, use that ammo to fire at the remaining dealers with the best price you are getting and ask if they can do better. You should be able to get below invoice at this point. Of course, in the process to getting to this point you need other types of ammo too.
- Here is the KEY negotiating ammo that I used to negotiate that you should use when FACTORY ORDERING:
* Tell them that you understand a factory order is as close as it gets to a pure guaranteed profit as they know you are going to buy 99% of the time. And even if you don't, they keep your 500 deposit (or whatever they require).
* Their inventory cost is close to ZERO on a factory order because you will pick it up on delivery date. Thus, the car won't take up any space on their lot. You should joke around and say that they can give you the discount only if you pick it up on delivery date to ensure it cost them no inventory cost. (I'm assuming everyone of you will pick it up on delivery date even if it's delivered 3 a.m. in the morning right? I know I will
)
* If they say that they don't make a profit if they sell it at invoice, let alone below invoice. Tell them that they make money on the dealer holdback. Which is around 1K in average.
* Let them know that you are a car lover, especially mustangs and like to buy new models annually. BUT don't flat out say that, let them know that cleverly by asking them if they give good trade-ins to old customers on cars that they sold because you are looking to change models every year (even if you plan on using your Mustang for 10 years). By doing this, they will further think about future profits from you every year and want to gain your business even for a small profit because of the expected value they can gain is huge. Making 500 profit from a customer who is not likely to come back is not as attractive as making 250 profit on a customer that is going to buy every year.
* If they ask you to come to the dealership for a test drive and then negotiate, tell them you are very busy and want to get the deal sealed over the phone. Tell them this: "When I come to your dealership, I'm coming with a build and 500 cash to deposit"
Lastly, remember to talk/text in a confident manner, use all the hot words such as inventory cost, dealer holdback, pure profit multiple times to give them the image that you are a well educated customer and know what you are talking about (and you should be too!)
I honestly put in a lot of thought and time in this post and hope that it will help many of you get the best deal possible. I've learned and received a lot of help from this forum and this is my way of giving back. Good luck to everyone and let the negotiation begin! :cheers:
So recently I just placed an order for a new 2016 mustang for $550 below invoice (+ rebates that comes into play on delivery date) after countless hours of researching and negotiating over the phone prior to coming to my dealership. And I would like to share my experience on how I did it to help anyone who has not secured a deal. Also, I would like to note that this is my first time ordering, buying, and negotiating for a car so don't doubt yourselves if it's your first time. Anyone can do it.
- First thing you should do is sign up for TrueCar, Edmund, ect with a hard to find configured car(more on why the hard to find comes in play later) so that the dealers have your number and start calling you. By doing this, you get the upper leverage when they are contacting you, the dealers will know that your number is out there on the net so they are expecting a lot of other dealers calling you. With this in mind, they will try to win your business over other dealers as their main priority, instead of squeezing every penny out of you. Of course, you should be active in calling other dealers too while waiting for other dealers to call you.
- When you first start to talk to the dealers, you shouldn't let them know that you are planning on an order just yet. You should tell them your looking for a car with a specific hard to find combos of option so that they can't find any in their inventory (It doesn't have to be the options you really want, you should also check their inventory online if possible so u can better provide a requirement that they DON'T have). By doing this, you give them the impression that they are not being able to provide you with what you originally wanted. Usually they will try to ask you to factory order because that's the only way they can get your business if they don't have what you want. If they don't ask, you can always say that you've contacted other dealers and they are all offering you factory orders for invoice and below. Make sure to express that the wait time is the only thing that is bothering you but you are considering it if you're getting a great deal.
- Don't worry about ordering a totally different car color and option when they seal the deal with you, just come to the dealership and say that you've been configuring online and a lot of things are attracting you making you want to change your preferred options that you originally wanted. This is very normal and believable and it does not really effect their profit. That is why in the beginning you can and should say a different car configure that is rare and hard to find to gain leverage later.
- Do this with many dealers and see who is giving you the best deal. Then, use that ammo to fire at the remaining dealers with the best price you are getting and ask if they can do better. You should be able to get below invoice at this point. Of course, in the process to getting to this point you need other types of ammo too.
- Here is the KEY negotiating ammo that I used to negotiate that you should use when FACTORY ORDERING:
* Tell them that you understand a factory order is as close as it gets to a pure guaranteed profit as they know you are going to buy 99% of the time. And even if you don't, they keep your 500 deposit (or whatever they require).
* Their inventory cost is close to ZERO on a factory order because you will pick it up on delivery date. Thus, the car won't take up any space on their lot. You should joke around and say that they can give you the discount only if you pick it up on delivery date to ensure it cost them no inventory cost. (I'm assuming everyone of you will pick it up on delivery date even if it's delivered 3 a.m. in the morning right? I know I will
)* If they say that they don't make a profit if they sell it at invoice, let alone below invoice. Tell them that they make money on the dealer holdback. Which is around 1K in average.
* Let them know that you are a car lover, especially mustangs and like to buy new models annually. BUT don't flat out say that, let them know that cleverly by asking them if they give good trade-ins to old customers on cars that they sold because you are looking to change models every year (even if you plan on using your Mustang for 10 years). By doing this, they will further think about future profits from you every year and want to gain your business even for a small profit because of the expected value they can gain is huge. Making 500 profit from a customer who is not likely to come back is not as attractive as making 250 profit on a customer that is going to buy every year.
* If they ask you to come to the dealership for a test drive and then negotiate, tell them you are very busy and want to get the deal sealed over the phone. Tell them this: "When I come to your dealership, I'm coming with a build and 500 cash to deposit"
Lastly, remember to talk/text in a confident manner, use all the hot words such as inventory cost, dealer holdback, pure profit multiple times to give them the image that you are a well educated customer and know what you are talking about (and you should be too!)
I honestly put in a lot of thought and time in this post and hope that it will help many of you get the best deal possible. I've learned and received a lot of help from this forum and this is my way of giving back. Good luck to everyone and let the negotiation begin! :cheers:
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