During my six years as an auto sales manager, my role was to “bump” bargain hunters — to persuade them to pay more for a vehicle.
Believe it or not, there’s a technique to bumping. People dread buying cars, yet they often prefer to haggle because they figure it nets the best price.
I get why people think that.
The Internet makes shoppers smarter, but you probably only purchase a new car every six to eight years, so you’re likely at a disadvantage compared to the sales manager, who negotiates daily.
To maximize your chances of getting a fair price, try one of these five tactics. Here’s how to buy a car wisely — without getting bumped.
1. Go After Loss Leaders
For weekend promotions, dealers will deeply slash the price on one or two vehicles, often to the point of taking a loss.
Dealers pair those steep markdowns with any applicable manufacturer rebates — so these will probably be the best bargains available.
These offers are first come, first served. Plan to arrive early on Friday morning, and you can be in and out of the lot quickly.
Downside
The vehicle likely won’t be in your preferred color or include every option you want.
Also, you have to show up early on Friday. This approach isn’t great if you’re picky — or can’t take time off work.
2. Use Third-Party Discount Programs
Independent programs have pre-arranged deals with manufacturers and dealerships, often pricing vehicles below dealer invoice — essentially below the dealer’s cost for the car itself.
Participating dealers promise a low-pressure sales environment, and typically only one dealer will reach out to you. These prices usually include manufacturer incentives and rebates.
Through Costco’s Auto Program, my clients saved anywhere from $2,000 to $3,000 off MSRP.
I had one customer who secured $4,000 off — before rebates — making the $50 yearly membership more than worthwhile. Members also receive 15% off accessories at select service centers.
USAA’s Car Buying Service is a close runner-up, helping military members save an average of $3,400.
Not a Costco or USAA member? TrueCar and Edmunds’ Price Promise give everyone free new-vehicle buying programs. Sam’s Club and AAA partner with TrueCar for their members.
From my experience, Costco delivered the strongest deals with the least hassle, but use at least two programs to secure the best possible price.
Downside
Discounts apply only to vehicles already in stock; special-ordered cars are excluded.
3. Deploy the Shotgun Method
Use the Shotgun Method when you know the exact car you want, you’re ready to buy, and you don’t want salespeople phoning you.
If you plan to special-order a vehicle, this approach helps you get your best offer. Do your homework first, then send this email to every dealer in the region:
“I am buying a [year, make, model] in [color] with the [options package, trim level, list of options, etc]. I am contacting all dealerships in the area for availability and pricing.
Please send window stickers [or details for used vehicles] for in-stock cars that match my specifications, and the best out-the-door price for each car to [your email]. Please list dealer discounts, manufacturer rebates [if new], taxes and fees separately.
I will email the dealership with the best match and terms tomorrow to reserve the vehicle and complete the purchase, so please reply promptly. Thank you in advance.”
You want at least two replies, though more responses improve your leverage.
Send the email on a Wednesday or Thursday. Dealers get slammed on weekends, and you’ll have a higher chance of catching a forthcoming weekend sale price.
Downside
You usually won’t score as large a discount as with a buying program, but this tactic is still quite effective.
4. Hunt for Aged Inventory
If a used car sits on a dealer’s lot for more than roughly 45 days, the dealer is hemorrhaging money each day it remains unsold. For truly aged inventory, the price will be cut sharply to stop the losses.
Exploit their urgency to move the vehicle.
If a car’s price is lower than any comparable listing you can find, it’s probably aged inventory.
If you don’t spot similar cars on the lot, casually ask the salesperson how long the vehicle you’re considering has been there. If they report under 45 days, expect to negotiate.
Downside
You can attempt to bargain, but be prepared for a refusal. Looking for aged inventory works best with used cars, though it can sometimes apply to new vehicles.
5. Consider Executive or Demo Vehicles
Executive cars are high-end, often have at least a thousand miles, and come fully equipped. Since they’ve never been registered with the DMV, they’re classified as new — and therefore may qualify for factory rebates.
Dealership ownership comes with perks, including driving the nicest cars on the lot.
Dealers commonly list executive cars in their online inventories — although the vehicle could actually be at the owner’s home. It may take a day or two to bring the car back to the dealership — and it may show signs of light use — but the owner likely treated it well.
The dealer will usually perform cosmetic touch-ups and any pre-sale maintenance at no cost.
New-car warranties typically commence on the purchase date regardless of the starting mileage. Always read the warranty fine print before signing.
Downside
Some states don’t obligate dealers to report executive vehicle accidents — so always ask directly.
Mixing Strategies for Maximum Savings
Adding creativity to these five approaches can uncover even better bargains.
For instance, compare offers from loss-leader sales, your discount-buying program, and the Shotgun Method.
By combining research with one or more of these techniques, you’re likely to save thousands on your next car purchase — without dealing with aggressive haggling.
Van Randon is a contributor to Savinly.
