Haggling

Are you good at haggling?

If I want to buy a car for example how much lower than the requested price do I offer?

I've never been good at this. Some people haggle over everything, even at a yard sale. Any tips?

hktownie hktownie
Mar '17

Get some comp prices, on a similar car. Print it, and carry with you, and they should be able to match or beat the price. We got our Honda, here in Hackettstown. Found the same car, on line(think it was carfax?), showed them, it was $3000 less. They didn't believe it. The manager called them to confirm it, then reluctantly gave us the same price. As far as yard sales and flea markets? That's easy. Think of what you want to pay... say, for a $10 item. "would you go five, on this?", in a sweet voice, then work from there. If they want to sell the item bad enough, they will be very negotiable. If not. Then, you have to decide how bad you want the item, and offer the highest you're willing to go and stop there. Depends on the item, price and how bad you need/want the item, and how desperate the seller is. It doesn't hurt anyone, to make an offer... don't be embarrassed, they're used to it. Good luck, with "the art of the deal".

sparksjbc1964 sparksjbc1964
Mar '17

depends on the car. A good source is Trucar.com. Build the exact car you want and they will give you a range of what a good vs. bad deal is. Even with the TruCar price, you can probably get another 1k or two lower than that.


Someone once told me cars in Pennsylvania are lower in cost than NJ. Don't know if this is really true or not --- maybe someone has feedback on this?

happiest girl
Mar '17

you look at truecar? they show you the "tissue" price and average prices paid in your area

http://www.fool.com/car/car08.htm

https://www.truecar.com/#/

skippy skippy
Mar '17

biggest scam/profit center is window etching and document prep fees. I was at a dealership and they had a 400 dollar document prep fee. Apparently, the NJ dealers association supports this and dealers make it seem it is non-negotiable. I don't pay either of the items. I am up front about it.

herbert hoover herbert hoover
Mar '17

Cars could well be more expensive in PA, it depends on where in PA and what model. That's definitely not universally true.

In order to haggle well you have to be educated about what you're buying. Getting something at a yard sale is totally different from a car. Cars the key piece of information is the dealer's invoice price and what size of "hold back" the particular dealer might get. Some brands don't have hold backs, others depend a lot on the size of the dealership. (the hold back is based on volume) Trucar and Edmunds and the like are essential to buy a car today. If you don't have an idea of what the dealer invoice is, there's no way to know what to offer.

As for yard sales, actually is a place I completely expect to haggle. And I'm regularly on both ends of that deal. Some people go in with the idea the price is set in stone, but it rarely is. I always put a bit of room on yard sale prices so when someone inevitably offers less, we can come to an agreement. If I really want $5 I'll put $7 on it. If someone offers $5, its done, if they offer $3 then I counter $5. Once in a while you get lucky and they pay the $7.

Sure, there are times when I'm buying that I figure something's so cheap already that it isn't worth arguing about. Other times I see stuff that's priced so high I don't even want to mention what I would pay and just never mind. The whole thing about haggling is knowing when to stick to your guns, and when you really want something and a little extra is worth it.

At a previous yard sale we had a person come who drove up in a Mercedes, looked over everything like 5 times, and finally wanted to pay my mom $1 for something marked $5. She offered $2 right away which he agreed to and then claimed he had no change. She refused to budge from $2 and he said he'd be back. He never came back. Two years later this same guy pulls up, looks over everything and asks me how much an antique bowl is. Well it had the exact price on it so I just pointed right to the price. He asked what my best price was. I paused for a second so he wouldn't misunderstood that I didn't understand what he was asking, and then repeated the exact same price again. He pretended I did understand and asked again "yeah, but I asked what's your BEST price". I quickly repeated the same price firmly. He started to walk away as if he didn't want it but then said he didn't think he had change, just like he said two years earlier. I said we could make change and he said "for a $100 bill" and I quickly said yes. He had change after all. Even exact change. That's a time when you know someone either wants it or doesn't. And if he didn't he wouldn't have asked for the price when he already knew what it was. My only regret is not saying the price was $10 higher when he asked a second time. ;-)


I always haggle with a car, never had it where the price didn't come down. At a yardsale it all depends, if something is so cheap I don't bother but if something is $10 plus I might offer a little less depending on what I'm willing to pay and how much cash I have on me. I try to explain to my mom to do what GC does and price things a little higher at the yardsale due to haggling. She gets so upset when someone offers her less, for some people they haggle on everything even if it says .25. I personally don't mind when people offer less because it's hard to price things. I try to price low enough that it will sell but I'd rather someone make an offer and have a chance to sell it, then them walk away. My feeling is I can always counter or so no.

Sunshine Sunshine
Mar '17

Research. I always look on Ebay as well for the sold price for the item I'm looking at to see what people are actually paying.

Kbb.com and edmunds.com differ greatly. See what other places are selling car for. Cargurus.com is helpful.

If it is a used car, you can also check the vin for free online to see if it is has a clean title.

Once you have a price set, ask below it. You can always go up. Don't be afraid to walk away. There are other cars out there.

Good luck.

Hopeful Hopeful
Mar '17

You may want to consider the Consumer Reports Car Buying Service:
http://www.consumerreports.org/cro/car-prices-build-buy-service/index.htm?ep=A0

Also, politely tell the salesperson to put away their 4-square paper (where they will confuse the heck out of you, filling the sheet with numbers and/or attempt to get you to tell them how much per month can you afford to pay)

Negotiate your trade-in separately from the purchase or the new/used car.

Agreed - forget the etching fee and document fees - purely profit for dealership & when challenged on it, remain firm in refusing to pay for it. Even walk away if you have to.

Nick Scalera ~ Photo Nick Scalera ~ Photo
Mar '17

I forgot - good call nick - many credit unions have a car buying service

skippy skippy
Mar '17

If you're a BJ's member, they have an auto buying program through selected dealers they work with. Never having used it, I couldn't say exactly how good it is however.

If you are a USAA member, whether a veteran or are related to one and are a member that way, they also offer a car buying service.

In any case, I would check whichever buying programs you may have available to you as well as the various web sites in order to see which of those gives you the best price for a comparable vehicle and work from there.

Phil D. Phil D.
Mar '17

I love haggling. It's fun and profitable. I haggled three car dealers over the phone. The one that made the deal went to Newark, picked up what I wanted from the docks, took it back to the shop and detailed it. Then drove it to my house and signed the papers at my kitchen table. Then, drove my trade in away. All in the same day. It was a blast.

auntiel auntiel
Mar '17

Have them make an offer you can't refuse....considered buying an ironing board a few years back....thing looked in good enough shape....offered 7 dollars cash...they said won't do it.....I said forget it.....that was at the old rockaway sales in Dover...moral of the story....they are closed now

Hank Arthur
Mar '17

My experience from garage sales is that the richest people are the biggest hagglers. The poor actually find utility in clothing, bikes, electronics. Blacks and Hispanics well behaved but some "Whites" were ridiculous. The worst in my experience being the typical stereotypes.


Thanks Skippy, great foolhardy article. Author sounds familiar :>) but wait, there's more....

What I do is a little web looking, then a road trip to dealers far away that I probably won't use unless they exceed expectations wildly. Here I "sharpen my saw" on what the in-vogue sales techniques might be, flesh out the famed "advertising/holdback/shipping whatever costs are being added to the invoice. Mostly I just try to get a price ---- bottom line only --- tax, tags, title, whatever included as in "I'm coming with a pre-written check, I need the bottom line." Usually they are only to happy to tell you the line items so you don't need to ask, but frankly I don't care what they are charging for --- I just want to know what I am charged.

Then after a morning of hitting 3 or 4 dealers, I hit the web, figure the MSRP and invoice price, any kickbacks/holds I can fine (who cares about them too, really....) and if there are any incentives out there. Incentives are mfg to dealer spiffs, don't affect dealer margin HOWEVER, I have had dealers not offer them in the past. When that happens, you just let them roll on, get to a price, make it final and then ask ---- isn't there a mfg incentive on this model? Either you will get a better price or have the fun of watching the weasel wiggle.

Then I state moving towards the dealers I want to use getting better price info on every visit.

I might abbreviate this now and use the suggested fax approach. Sounds less painful perhaps.

So thanks.

Haggling on other stuff is a NJ tradition! I figure if I can't get 10%, I should turn in my NJ citizenship :>) Really depends on my mood and the price of the object for me.

strangerdanger strangerdanger
Mar '17

After doing some research on a particular car, I went to a local dealer with what I felt was a reasonable offer (key word: reasonable). I was paying cash and showed the salesman my check. He said absolutely not, couldn't do it. I said, "okay, thank you for your time" and got up to leave. He said "no no wait a minute. How about this?" I said, "nope my check is my limit" After spending a lot of time with him trying to get more money out of me, the sale was made. I got the car for my price, including the tax and fees. I got up to leave several times and he always stopped me, finally meeting my price. I didn't exactly "haggle", I simply stood firm on my offer and kept saying no until he agreed.

Parental Unit Parental Unit
Mar '17

the trick is knowing what the dealers in the vehicle for - the offer has to be reasonable for it to work. I hate any business that capitalizes on the availability of information - you are already negotiating at a disadvantage.

skippy skippy
Mar '17

Come see me at Honda of Hackettstown - and you can "haggle" to your heart's content! I will beat any reasonable / documented offer on an "Apples to Apples" vehicle. Trust me - I have over 50 "POSITIVE" experience related posts. Here, see for yourself and then stop in and ask for me - Rob Nylund.

http://www.dealerrater.com/sales/Rob-Nylund-review-282211/

Bobby Noodles Bobby Noodles
Mar '17

And as for Mr. "Herbert Hoover" several posts above - By law, N.J. State regulated dealers are "allowed" to charge upward of $799 for the Doc (Documentation) Fee. Hackettstown Honda does charge a $399 Doc fee, and rightfully so. How else should we cover the costs and pay the employees in our N.J. Dept. of Motor Vehicles transaction department? You know, the young men and women who process the Titles, Registrations, New Plates, Inspection Stickers, Transferred Plates, VIN # verification, the paper, the toner, the fax machines, the Fed-Ex fees for sending the plates and titles to out of state consumers? - should I go on? Documentation fees ARE VERY real in our dealership, and the Owner and/or Management will not waive, nor reduce the $399 fee. You may get a "break" on the price of the vehicle, but not the Doc Fee.

Bobby Noodles Bobby Noodles
Mar '17

^ While I applaud Hackettstown Honda for charging less than the state maximum for doc fees, exactly how do you break down the $399 fee charged to each buyer? For example, how many hours does it really take to process this work?

D-ManPV D-ManPV
Mar '17

Lots of good stuff here. I've probably bought 5 cars in the last 10 years. I like to think I'm an educated buyer. If I had to make suggestions:

1. Don't ever tell them what you want to pay. The moment you give a car dealer that information, you've lost all ability to negotiate. They've won. They deal with 30 banks. Trust me, they will find a way to meet your "monthly payment". Don't get me wrong - its fine that a dealer is making money. All they need to be concerned with is what they are willing to sell the car for. Its none of their business how much you want to pay, how much you are putting down, whether you are trading in, etc. Save all of that for later, after you've agreed to what price they want to sell the car for.

2. Get pre-approved. Go to your bank, find out the interest rate on "X" amount of months (whatever you plan on financing for). Now you have baseline. I actually have a quick program that lets me calculate exact payments based on whatever variables (Amount financed, interest rate, length of loan). If the best your bank will give you is say, 4% for 60 months, now you can decide if what the dealer eventually offers you is a good deal. If they don't do better, take the loan from your bank.

3. Sorry Bobby Noodles - but I'm with the other posters above. I'm not paying doc fees or window etching fees. This is one of my biggest pet peeves with buying a car - Car dealers have it pre-filled on the contract like it is non-negotiable. This is nothing more than a fee to make "more" money. You're not in the business of employing the DMV. You sell cars. Charging customers to say you are paying the DMV employees? Nope. That's part of selling a car. You costs should be in the sale price of the car.

4. Paying cash does not get you a better deal. To the contrary, the dealer makes money off of you by financing it with their own banks. Give them cash, they lose that vig.

5. Do your own math on trade in versus cash down payment. Example. Buying a $20K car, you trade in your vehicle for $5k. Now you will only be taxed 7% (rounded up) on $15K, or $1,050. But if you put $5K down in cash, you get taxed on the full $20K, or $1,400. So its costing you $350 more to put cash down versus trade in. Figure out how much you could sell your car for, and what the savings would be for trade in versus cash down.

6. Speaking of trade in, if you REALLY want the inside information on what a car is worth, buy a $10, 1 week subscription to Galves. They are the authority. Forget the KBB and NADA, Consumer Reports, Tru Car, etc. Galves rules. I have literally had dealers try to have me look at their computer screen as they pulled up a KBB report, and when I pulled out my Galves paper, they begrudgingly closed down their computer and "surrendered" with an OK, we use Galves too.

Good luck, and never be afraid to walk away. It seems challenging the fist time you have to walk off that lot, but you'll sleep better at night!

Mike in LV Mike in LV
Mar '17

If you are concerned about saving every dollar you can- (and in the case of buying a car- several hundreds of dollars)- buy used from a private party.

There is a reason why many NFL team owners also own car dealerships- that is where they made made their money before buying the team.

But be aware, on the actual car cost they don't make much. The vast majority of profit is in the service department, and yes- the BS fees they add to the car sales.

Plate fee? Registration fee? No thank you- I can go to the DMV myself. ;)

Back in the 90's I bought a used car and the dealer tried to charge me for pin striping. I told them it is ugly and I never wanted it anyway- I was going to peel it off as soon as I got home. Dealers used to make a fortune off of that crap- that you could buy at a local auto parts store for a couple bucks and apply yourself in less than an hour if you had even somewhat steady hands. Its a lousy sticker.

Bottom line- have a firm price in your head, call or write them and tell them before you even walk in the door that you will only pay X amount OTD. <period. They will try to make excuses, they will try to wiggle.. don't bother with those type of people. Let them know you mean what you mean or will walk away and they can wait for the next fish to swim by.

I have bought many many vehicles in my life. Most have been from out of state. No surprise there. I have flown out to other states and drove home. Had a friend drive me to nearby states and drove home.

Not saying everyone wants the 'hassle' of having to 'do something' to get the best deal. If you just want to get something now, something quick, something easy- there are plenty of people in many businesses ready to help you spend. Just keep in mind- every $300 you save will earn you $1 a month for the rest of your life.


This is what I have learned buying the last 5 cars:

1. Never NEVER NEVER go to the dealer to buy a new car EXCEPT to test drive the car to figure out what you want.

2. Once you have figured out what you want including options email the internet manager for say dealers within 50 miles from your home. Ask for "out the door price" including all fees, taxes, extended warranty, etc. Let them know you plan to buy the car this week. ALL communications will be via email no phone calls or you have car them for the best deal.

3. Play one dealer off the other until you get the best deal.

4. Do not talk about trade in, that is a separate deal.

5.If you plan to finance the car find your best deal buy yourself BUT be open to what they have to offer.

6. Once you agree on the number that is the number. When you go to pick up the car and they try to change the number.....WALK OUT.

The last car I purchased was from Hackettstown Honda but East Strausburg Honda had the best deal I went back to Hackettstown since they were local and said beat it you got the deal. They did by $250 and they got my business. The car before that was purchased in York, Pa.

Good luck

Not in NJ Anymore Not in NJ Anymore
Mar '17

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