How to Beat the Devil
By Paul Barrett - Author of Financial Wisdom - Director of the IFI
Car dealers are notorious for taking advantage of buyers. Think about it. One person walks into a dealership and pays sticker price and another person buys below invoice. Is that fair or equitable? Why should one person get taken to the cleaners all because they are not good at negotiating?
What is so amazing is that many people think they got a great deal when they really got the shaft. As a financial adviser, I have been helping people buy cars for over 20 years. I know the games that salespeople play. I also know that it is very difficult for the average consumer to get a "good deal."
That is one of the reasons for this site. I am trying to help IFI Members get the best deal possible. To do so it takes work on your part.
To get a great deal you need to learn how to approach the buying process as well as how to negotiate. Another key is having the bargaining power of a consumer organization like the IFI behind you. If local dealers are unwilling to give you a good deal, we will search the state for a dealer that will.
Buying a car is serious business. Over the course of a lifetime car purchases add up to largest expense a person makes. Buying cars and maintaining them can be budget breakers. If you are foolish and make the wrong decision you can lose money. A lot of money - a small fortune. making the right car buying decisions and getting the best prices can be a major step towards achieving financial independence.
If I can teach you how to beat the devil, you will never get taken again.
If you don't want to get cheated, ripped-off, high-pressured, scammed, hoodwinked, swindled, conned, jacked around, screwed, suckered or fleeced.
Here are 7 rules you need to follow:
1. Be smart -don't get emotional - There is a dealership owner in this area that other dealers call Porky. Although he is a bit overweight , the reason they call him Porky is because of his greed. When other dealers think someone is greedy, it usually means they are off the Richter scale. Porky lives in a multi-million dollar home on the water, flies in a private jet, and owns a million dollar home in the mountains out west. Porky loves money.
If you bought a car from Porky, chances are you overpaid. The truth is, most dealers love money. The more they have the more they want. Your job is to try to out fox the fox. Remember, you are trying to beat the devil at his own game. Our job is to help you find a dealer that is willing to negotiate a low no haggle price if you are not a negotiator, or to teach you how to negotiate to the last penny. If you are smart and stay disciplined instead of emotional you will beat the devil.
2. Three deals at a time - When you purchase a new car, an important point to always keep in mind is the fact that you are negotiating 3 deals at one time. One - you are negotiating the price you will pay for the car. Two - you are negotiating the amount of money you will receive from your trade-in. Three - you are negotiating the terms of the financing. If you are not on top of the game in all three areas you will bite the dust as far as winning the negotiation game. A dealer may sell a car to you at a rock bottom price, but give you a low value on the trade in and clip you on the financing. Like Los Vegas the dealer always wins. Unless of course you are wise. So don't forget you are negotiating, the price you pay for the car, how much you receive on trade-in, and financing terms. You must be wise and disciplined to win in all three areas. Most people have no clue as to what is going on. Many think they have made a great deal when in fact they were taken to the cleaners.
Keep in mind that you will never get as much on your trade-in as you would selling it yourself. The dealer needs to make a profit. If you cannot or have no desire to sell the vehicle yourself, then do all that you can to get a fair price from the dealer.
3. Negotiate - If you are turned off by negotiations, then buy on-line at our discounted price. Can you beat a no-haggle price? Yes, but it may not be easy. Dealers do need to make money, or they would be out of business. We are not looking to steal from a dealer, we are only looking for a fair and equitable price. A no-haggle price is set at a point where a dealer makes a fair return instead of a killing. However, if you still want to go for blood and negotiate with bare teeth we will show you how. It's your decision. Getting a good deal is often simply a matter of taking the time and making an effort. (According to new studies women have a tendency to avoid the negotiation process - if you are a women, click here.)
Here's an example. Suppose you live in West Palm Beach or the Palm Beach Gardens area. You are thinking of buying a Buick. What do most people do? They go to the local dealer, test drive a new car, spend a few minutes trying to get a lower price, and then the new car smell and emotional high does them in. They roll over play dead and get the shaft.
Here is what a smart person would do. They would join the IFI and get a good deal. We found three dealerships in the area that are willing to offer a better price than the local dealer. To the south, there is Ralph Buick in Delray Beach. Ralph Buick is a smaller family owned dealership, with low overhead, and they are willing to bargain! They have gone head to head against the Goliath and have beaten him hands down. Now, to the North is Carl's Suburban, they are located in Stuart. Carl's is a powerful dealership willing to smash the competition. The key to their negotiating power is once again low overhead. Stuart real estate prices are much lower than those in Palm Beach County - Carl's is not burdened with massive overhead -- the local dealership is. Carl's can cut their prices well below the competition and still make money. Finally, out west in Belle Glade is a Buick dealer, located in practically a farm field -- talk about low overhead! They are willing to practically give cars away. They claim to sell below factory invoice or pay $500 if they don't beat the competition's price.
What's interesting is that we called the local West Palm dealer for a quote and they claimed they have never lost a deal because of price -- when we told them the quotes that members received from the other dealers they simply hung up. When you hear a lie like we have never lost a deal because of price, just know its a lie. Do you get the point. A few hours of driving could save you hundreds maybe thousands of dollars on a deal.
To get a great price on your vehicle purchase, click here.
4. Knowledge - Wisdom - This is a matter of knowing what a good price is. Here's a hint it's way below sticker. To learn more about dealer pricing , click here. It's very close to factory invoice depending on the car and the market. A couple thing you can do to gain knowledge is to use the links on this page and attend one of our Financial Wisdom Seminars. At a seminar we will help you become financially stable, secure, and independent. We will cover the topics of buying cars, homes, investing and more. It is the ultimate money management seminar. Get wise!
5. Always use the Internet. But be Careful. - It's true that many dealers will offer you a discounted no-haggle price. The problem is, most will not offer you the best price. It is often rigged. Your name and telephone number will be forwarded to the closest dealer which is not always the best choice-- see the example above.
Most internet buying services are national companies - they have never been in Palm Beach County or dealt with the dealerships in this area. They have no clue as to who they are referring you to. The IFI has been in this area for over ten years. We are local and our mission is to help our members save money and make wise choices in all areas of finance, not just buying a car. Read Financial Wisdom and you will know that we are dedicated to helping you achieve all your goals including financial independence.
6. Buying Tips - If you really want to save money, use as many of our buying tips as possible. Some of the smart things you can do to save a bundle is to buy a car 2-3 years old, buy during slow seasons, buy cars that are not popular, know your budget, research the car, and more. For a complete list of our car buying tips, click here.
7. Do your best. - Think of it as a game. I remember helping a member, a young lady, purchase an Audi. She shopped all over the state for the best price. It was difficult to find a car equipped with a Bose stereo system, the color interior she requested and the other details she desired. Finally they located a car and she was ready to buy. Upon our initial negotiation, when they offered her a price higher than initially quoted, I told her to walk out and to come back at a later date. But her emotions got the best of her. The sales manager knew she desperately wanted the car. Unfortunately, against my advice, she wrote a check on the spot. After a month of searching and negotiating she buckled under in the final stages. The truth is the car would have been there in the morning. As much as the salesperson tried to make her believe that someone may purchase it, the truth is the Audi is not a high volume fast selling car. Her emotions and urgency cost her almost $2,000.
The dealer won because they knew she was desperate and anxious. The point is, buying a car can be an emotional experience, as much as we try to remain cool, calm and smart, there are times when our emotions will overwhelm our logic. Do your best.
Remember, my job is to help you become financially stable, secure and independent. I will do my best , you do your best.
In the Financial Wisdom Seminar we teach you how to save money on all your purchases. Let us help you get wise.
Your author and friend,
Paul Barrett
