There are no shortage of car buying tips floating upon the sea of internet websites. I will write something different. I propose to provide you with an account of my actual encounter with a professional salesperson (with any and all its flaws) so that you can glean and gather any tips to improve your advantage in this often agonizing adventure. The encounter is an actual transcript, word for word, as far as my own memory can recall. The names have been changed to protect the guilty!

While going through the story I will also provide some of the background research I did which allowed me to get a great deal on a used truck.

 I arrived at the dealership about 4:30PM on Saturday.  This is the end of a sales week, which is a good time to make deals, the end of the month can be even better.  I had looked online and called ahead and knew that they had at least 1 2006 Toyota Tundra (3 years old) for me to look at.  I had gotten the name of a salesperson on the phone and confirmed the truck was there.  I won't go in to why I wanted a 2006 Tundra...that isn't important for this article.  Suffice it to say that 3 year old vehicles are often just coming off a lease and, as such, are often (not always!) kept in nice condition and driven a modest amount of miles.    It is very important to shop with plenty of daylight left, as small scratches will be more obvious and have a major bearing upon the value of the vehicle. 

I entered the dealership with my notebook (filled with my notes and files from 2 weeks of searching and research) and asked to speak with the salesperson by name.  We were introduced and went out to the lot to see what they had.  They had just received 2 previously leased 2006 Tundras from an auction which had not yet even been processed yet.  One was red and one was black.  They were both beautiful!  I think this is important.  There needs to be immediate connection with the vehicle.  I drove them both.  I liked the red one.  I knew it was the best 2006 I had seen yet.  With just 25K miles, a nice bedliner, clean interior, V8 4.7L engine, 4 doors, 6 seater...it was what I wanted.  No compromises...this was the one.  We got out...and I told the salesperson I would like to discuss the numbers on the red one.

Okay...here is the step that scares most people to death. Listen to me...it doesn't have to!! Here is how it went down...I'll explain later how I prepared.

Salesperson: "We haven't had a chance to price this one yet (the red one) since it just came onto the lot. But we have a "best price" program which allows us to give our best price and sell it for that. It avoids the difficulties and disappointments of haggling over the price. This one would price the same as another similar one on the lot. The price is $21,999. Is that about where you want to be?"

Me: "I come with my best price too. It avoids all the haggling and dissappointments. I'll tell you that I have $7,000.00 to put down and I plan to finance another $10,000.00. Thats what I can offer"

Salesperson: "Well....that is going to be quite a stretch [big smile]. When you say you want to finance just 10 thousand...is that based on the payment you want?"

Me: "I can't go over $199 per month and I am not interested in financing more than 5 years. I know I can get that payment if I stick to 10 thousand." [NOTE: Some "experts" will say it is always the wrong move to talk about monthly payments. I disagree. By mentioning the payment concern I am now getting the finance team to get me the BEST interest rate. I have checked local banks and credit unions and they are offering about 6.25%...but I know the dealership can do better because I have a great credit score].

Salesperson: "This will be quite a stretch. But I'm willing to give it a shot for you. I'll be right back. Wish me luck"

Me: I smile.

Salesperson: "Well, it looks like we are in luck. We can definitely keep your payment down to $199 but we have to finance it out a bit longer."

Me: "How much longer?"

Salesperson: "75 months." At this point he brings out his paper that he has been taking notes on. He shows me a big 75 months x $199 + $7,000 down.

Me: "Well, thanks for your help, but I'm really not prepared to finance out that far". I start to gather my stuff. Okay...let me share what I know at this point. I have been shopping around and have checked the Kelley Blue Book trade-in and retail sales price for low mileage 2006 Tundras. I have also used www.edmunds.com to get an idea what a modestly equipped, low mile, 2006 Tundra is worth using their FREE "True Market Value" tool. I have gone through www.craigslist.com as well. I know a good price would be about 18 thousand for a truck in very good condition with low miles. Based on shopping around I knew that anything far below $18,000 would likely mean the truck has some problems, either cosmetically or mechanically. This research is critical. It gave me my starting number. My original offer of 17 thousand was lower than what they could sell this for...but I left room to move up a little. His current offer is 15 payments more (roughly $3000 dollars) than I offered.

Salesperson: "Wait a minute. Can I ask how you planned to pay for the taxes?"

Me: "Cash. I held back a thousand to cover taxes". I knew beforehand that at 5% sales tax, plus title and registration, I would be just around a thousand. You have to remember that, unless you want them to finance in the taxes...which means you have to add that to the fair price you have in mind. Also, by offering this thousand into the deal, and stating that everything else would have to be financed...I put a squeeze on other fees they may be able to waive.

Salesperson: "So if we included tax and fees you have another thousand. So that makes 8,000 down. Now...what if we came down to 72 months?"

Me: "I'm just not interested in financing out that far"

Salesperson: "How about 66 months...give me something?" Big smile.

Me: I pause for a minute. I look up...look around. I know the value of this truck...and so now I chose to make my concession. "Okay...I'll do 66 months" I know this means $1200 more which puts me right about at the amount I think is fair.

Salesperson: "Okay, let me get your signature on that deal...and I'll run it past him". He circles "66 months" and "$8,000 down" on his paper and asks me to sign. This, of course, is just a game. It presents the illusion of a comittment. I'm willing to play. I sign the scratch paper. He leaves to bring the offer.

Sales Manager: Now he returns with "the big guy". His "boss". He presents a counter offer. He shows me a piece of paper with 66 months x $229 per month written on it. He explains that he can make this deal happen "for just $29 more dollars per month."

Me: "Well, I appreciate how hard you are working. I'm willing to work hard to. What I can do is go home and look over my finances and see if I can do it and if so I'll be back on Monday." I smile. Remember...you hold the money. They want to make the deal today. They have already invested time in you. I came to them on my day off...it cost me nothing. But I've driven their vehicles and used their time...they have already made an investment which they will lose if I walk out that door. I am right where I want to be. I know the trade in value of this truck and am sure they did not pay more for it than that. They have to also pay for the safety inspection, transportation, advetising, rent, utilities, payroll, etc. So they need to mark it up. And then they need a profit too. That is only fair. But because I did my research...I know I am offering a fair price. I hold my ground.

Sales Manager: "What can we do to make this happen for you today? What deal will you agree to?"

Me: "I signed the deal I would agree to...right over here." I point to the other sheet of paper with my signature and the 66 months x 199 plus $8,000 down.

Sales Manager: "Can I have your credit card? If I go up to the boss with a Credit Card in hand he is more likely to be cooperative". I hand him my Credit Card. Again...this is the game. He's hoping I'll just release all the tension and agree to more payments. He leaves...and comes back in 2 minutes holding his head and claiming he "just got yelled at and has such a headache". LOL. He asks if I'm a gambling man and would be willing to flip a coin for just 1 more payment (ie he wants to make it 67 payments instead of 66).

Me: "I've never bought a scratch ticket in my life. I work too hard for my money to give it away. I never gamble"

Sales Manager: He sees that he has hit a wall that will go no furhter. He smiles...holds out his hand and says "okay then...we've got a deal."

Okay...that was how the sale went down. I have not discussed many things that also should be considered when buying a used truck or car. The focus of this article is simply on negotiating for a great deal. So what do you need to do to be sure to negotiate for a fair price? Here are my tips:

1) Remember...what you want is a fair price...and that is a great deal! I paid less than they asked...and they got more than I initially offered. But it worked because I had a rough idea what a fair price would be. A fair price is a great deal for everyone. Remember that.

2) Use the tools available to you to come up with a fair price. Check what other similar vehicles are sellilng for and take notes. You can "create" an imaginary car or truck and punch in the figures (year, model, miles) into www.kbb.com or www.edmunds.com. See what private sellers are asking on www.ebay.com or www.craigslist.com. Dealers will try to get more...but also offer substantial safety checks and services. The key is to have a fair price in mind...and to mentally prepare your offer beforehand.  Also, come prepared with the proper forms and paperwork that could be needed:

BRING:  Some money for a deposit (if you plan to put some cash down).  At least 2 weeks of paystubs for income verification (if you want them to finance some of it).  The title for your current vehicle if you plan to trade it in.  Your driver's license (of course) and 1 other form of ID (like a social security card).

3) Know what you have to put down and what you have to finance to get that fair price. Then check what the monthly payments would be for that amount financed for 5 years (or whatever you are comfortable with). You can use the "monthly payment" game ONLY if you know how many months you have to stick to in order to keep within a fair price.

4) If you have a trade, you need to know what is a fair price for your vehicle and factor that in. That is part of your "cash" down. It is part of your offer. Check the blue book for a trade in price. You may be able to get more money for your vehicle selling it yourself.

5) Don't negotiate on a truck or car you don't like. I saw one in an online ad...but when I looked at it closely in daylight it had some scratches on nearly every surface. I didn't want a better price for this truck...I just didn't want it at all! No deal is a good deal if you don't like what you end up with. You don't have to settle...there are no shortage of vehicles out there!!

6) Most importantly...don't be afraid to walk away. A good salesperson won't try to talk you into a used vehicle that you don't like. And you are not doing anyone any favors by caving in to a deal that rips you off.

Best wishes...and good luck finding that Great Deal on a Used Truck or Car!!

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