Tactic1.”May have started Too Low
If you feel that for some reason your final offer may actually be less than they can take-for whatever reason-and you're inclined to raise your offer ... don't. This tactic is designed to help you stay in control while forcing them to give you their best price. At an appropriate point stand up and say the following:

"I am prepared to buy and take delivery of a car like the one you've showed me within the next two days. And I will buy a car within that tirne,frame. However, I am looking for the best possible deal. Maybe, as you have suggested,, my offer is unrealistic. There before, after I leave, I would appreciate your deciding what is, 2n fact, the lowest price that you'll accept for this car. While you're doing that, I'm going to visit two or maybe three other dealerships and give them the same opportunity. Like you, they will have one and only one opportunity to bid for my business. There will be no negotiation. If your price is competitive with theirs, I'll probably give you the business because of the time you've invested with me.You have my phone number, I hope to hear for you no later than this evening. "And with that, walk out. Chances are they will try to keep you there with more questions, but be resolute. Walk! If you agree to raise your bid at this time, you've opened the door for more "grinding" and sent a signal that says you can be "worked." In this case control is maintained by making them chase you ... at home.

Tactic 2. "Using the fax
Let's say that for one reason or another you'd like to do business at a particular dealership. Maybe it's close to home and you feel you'd get better service if you bought your car there. However, you want to be sure that you've gotten the best possible price. Here's one approach you might try:Visit the dealership within three to four days of the end of the month. Decide which car you'd like to buy and make it clear that, you intend to buy before the end of the month. Ask the salesperson to give you the dealership's best price. Write down the number and then using the MSRI' sticker on the window, write down everything-including the options-that is included in the car. Tell the salesperson that you intend to shop the price, but that you'll give him or her the last shot at making you a deal.

Go home and call four or five other .dealers in the area. Ask for a salesperson and tell them that you must buy a car before the end of the month. Tell them it's for tax reasons or anything else you can think of. The key is to convince them that you're a buyer with cash that's burning a hole in your pocket. Tell the salesperson that you're going to fax him or her a description of the car you're looking for. Suggest that you could be flexible on the exterior and interior colors, but that basically the car you're describing in the fax is the car you want. Finally, tell the salesperson that you're giving them one and only one chance to bid for your business. Emphasize that because you're in a hurry to buy the car, you haven't got time for dickering. You just want their best price. Give them your fax number and tell them that you need the price no later than noon tomorrow.

Some dealerships will refuse to send you a price. But others will bid willingly. The prospect of having a live customer who's ready to buy will usually motivate most dealerships to give it a shot, especially if it's the end of the month and sales have been slow. Now, be warned at some dealers may give you a lowball bid. The lowball is designed - et you into the dealership so that a salesperson will have a chance work you into a deal. The fact that a lowball bid will probably not be honored is of no concern in this scenario. The reason is because you're going to use the competitive bids to force down the price quoted by the first dealer.

Once you have the faxed bids-and assuming they're lower than the price you've gotten-take the lowest back to the first dealer, show it to the salesperson, and ask if he can beat the lowest price. Empha size that you want the salesperson and the dealership to have your business and that you're ready to write the check, but that you don't want to pay more than you have to. Always, always be very, very pleasant. While the salesperson may be angry inside, it's very hardand a rather poor bit of salesmanship-to show that anger to a person with a friendly smile on their face.Chances are very good that unless the competitive bid is below their actual costs-including rebates and hold-back-they'll beat the competitive price rather than risk you and your checkbook walking out of the dealership.

Tactlc 3. "I can Wait"
If time is not a factor in your purchase decision, if you're looking for a car with the most common options, and if color is not a major consideration, you might consider this tactic:

Visit three or four dealerships-more if you like-and tell a sales¬person that you know exactly what you're looking for, that you're flexible on options and color, and that you are willing to pay $200 above the invoice price. Explain that while you understand that they may not want to make you that kind of deal at this time, they may, at some time in the future, need one more sale to "make their month." Leave your card and on the back write:"I will pay your true invoice plus $200 for the following model. Call me when you're ready. "Then, every month, call each of the salespeople and remind them that your offer still stands.At this point you might be asking: Why would any car dealer accept this deal at any time? There are several reasons.

As we pointed out earlier, car manufacturers are always pressing their dealers to make their numbers. That is, to move a certain number of cars each month. The pressure to make these numbers is what makes it easier for you to negotiate a better deal at the end of each month. If a dealer knows that he's got a deal hanging out there-even at invoice-and he needs sales to make his quota, you could very well get a call.

A second reason is that if the sales of a particular model begin to slump, the manufacturer will often support it with a factory-to-dealer incentive to help the dealer move the cars. Here's how this works: Let's say a particular car has a factory invoice of $18,000 and the \ISRP reflects an 18 percent markup at $21,240. If the dealer has inventory on the lot-inventory that's costing him interest at the wank-the factory is going to press him to move product. So they find our name in the file and call you up. "Okay, " they say, "we can give you the car at our invoice plus $300. " Expect them to try to "up" you a few dollars. You want the car, so you agree. The dealer claims to be losing money, but the facts show otherwise.

Now, no dealer wants you to think that they are actually making money on your hard-nosed deal, so they will make you feel good by sobbing, gnashing their teeth, and bemoaning that they have just given away the store and have no money to buy shoes for their children. As we said earlier, good car salespeople are good actors.The dealership will probably give the salesperson a $50 commission-after all, he or she only made a $300 profit. If the car has been on the lot for under 30 days, the dealer owes a month's interest that might amount to approximately $120 to $150.When you consider that the dealer has risked only the cost of the interest-remember, the financial institution has paid the manufacturer for the car, and the salesperson only earns a commission after the sale-you realize that the dealer's made a darn good return on his investment. How many other businesss do you know that earn that kind of return on their money? But the profit stream is just beginning. There's more money on the way.

Let's say that you decide to use your current car as a trade-in to help pay for the new car. Let's further assume that the true wholesale value of your car was $7,000, but the dealer convinced you it was only worth $6,750. (In this scenario you have not taken the time to find out its real value and the lure of the new car for just $300 over invoice motivated you to make the deal.) The dealer will then turn around and put the car on his lot for $9,600 and end up selling it for $8,500, which adds another $1,750 to the total profit generated by your purchase. Now add whatever they might sell you on the back end of the deal plus the money (be it warranty work or your own cash) that you spend in the service department over the next several years. As we said earlier, the bottom line is this: There's a reason why car dealers live in verv nice houses.

But Remember.. . You Don't Have to be one of Those Reasons
Because you used this book, you would have been aware of the factory-to-dealer incentive (you would have checked the "Incentive Watch" in Au,tomotive News), and you would have factored in the dealer hold-back. When they called you to say that they were willing to accept your offer, you would have told the salesperson that your offer was made on the tr-i,ce invoice cost, and since the factory-to-dealer incentive has reduced the cost by $1,000 your offer is on the lesser price. Hopefully, this little ploy on your part would have helped you reopen the negotiation, which, in turn, might have resulted in an additional savings.