How to negotiate the best price (good deal) for a new Hondaby Contributor
You just bought a new Honda and you feel you pay too much for it? I hope you have not buy it yet. I am about to show you how to get that best deal when it comes to buy a new Honda cars, trucks or mini van.
This comes from owning 5 new Honda and buying from 3 different Honda dealership in Chicago, IL & Detroit, Michigan area.
It is not easy, and takes some adjustment to what you would like to be, but it will save you lots of money and get the cheapest price
Do your research: search Yahoo auto (http://autos.yahoo.com/honda/) for the MSRP and invoice price online. They don't provide the current years invoice price any more, but the 2008 invoice is a good enough reference. Note: You should know, Invoice = the cost dealer is getting from car manufacturer quote and quote "cost". MSRP = Manufacturer Suggested Retail price the "sticker" price, the dream amount a Honda Sales person want you to pay. Because you are reading this, that disqualify you from that group. Lucky you.
Now find 2 Honda dealerships cloest to your home (you don't want to spend time looking, so closer the better), and one out of state in a majorpolitian area where lots of Honda is available, competition is high and more color, options are at your choice. Then email each one of them and tell them your price (at or $100 above invoice).
You will need to do lots of back and forth through email, and throw in accessories like you mean to buy them. Ask for trade-ins. Tell them you are driving from out of state. Find out from them if manufacturer is offering any incentives to the dealer. The chances are one of these sales will give you more information. The idea is to use all the information you get from one dealer or one source of information against the Honda sales and get the online sales person lower the sticker price closest to invoice as possible.
Now the tough part: Now once you reach that base car price you want, write a final confirmation email to the sales person and print that out.
Pick the last day (or the 1st day) of the month and a slow month, like Jan, March, or October, take the email print out to a different dealer, and ask for the sales manager's approval right the way.
All Honda Sales Manager (all the ones I dealED with anyway) is hire to do the "tough negotiation". When you get to sit down and talk with him, he will start to throw tough terms with you. "Are you going to make the purchase now?", "I can't give you this, but you must add another $100" "I am not making any money". Your answer?
"I know it is the end of the month, you probably make enough from other deals, you can work with me to get this deal close" "Yes, I am going to make my purchase now, the question is are you. My objectives are clear". "I bought enough Honda to know all the drill, let's save the BS, and get this done" "I know you get incentives from Honda this month, you are not lossing money with this deal with me" "I m willing to get some accessories at 20% off, and buy some extended warranty. you will make money from there too"
Remember, don't show hestitation and remember you are the decision maker not the Sales manager
Once the price is done, now ask for more (eventhough you may said earlier, no more changes. Unless you already has that down earlier), such as waive the documentation fee, or destination fee, or waive the first year license fee. They will tell you that's a government fee, not them. So tell them you know other Honda dealer will do that base on experience. Also ask for life time free oil change or at least 5-10 free oil change and say you will likely to do service here if free oil change is offered.
Get at least 1 or 2 of these for free before you settle for the final price
Negotiation is not for everyone, but with a little pre-practice and knowning how others do it helps. This is my own experience of buying Honda cars, trucks, sedans and minivans. It worked after I bought 2 from them at a price I don't want to pay. I now getting the invoice price all the time (well, my last 2 vehicles, Honda element and Honda Odyssey)
Hope you can get that same great feeling of getting the best price, best deal
- If you end up buying a car out of state, you are still paying your home state's tax rate.
- Smart consumer wins, the more you know the better for you as a consumer. But this is not a guarantee that you will get this. Like I said, it takes some challenge steps when it comes to negotiation.