Q: ...or is it more to my advantage from a negotiation standpoint to hold off? I know that with my own financing, the dealer stands to not claim any "dealer reserve" on the purchase; Wondering if that will significantly impact my bargaining chances (I'm hoping to knock 10% off, no less than 5%). Thanks in advance!
A: A customer never has the advantage when shopping for a car. No matter what others may tell you or what you think will work, a professional salesman will always know how to counter it. You may buy a car every 4 to 5 years. We've worked with over 4,000 customers in that time. You come onto the lot. The salesperson who greets you has had over 4,000 times to perfect his sales pitch, overcome all objections and counter all aces-in-the-hole. You're doing this once in 4 to 5 years. That salesperson has done it over 4,000 times. Who has the upper hand? Your best bet is to find the car you want. Don't let a salesman talk you into a car he needs to sell. Buy the car you want. If he is way too pushy or is not listening to you, go somewhere else. You'll be a fool if you stay. And don't turn around or acknowledge him in any way at all. Just drive away. Or you'll get put together in a deal you'll quickly regret. Find a dealer where you can talk to the salesman and he's listening to you. Someone who doesn't come off as shady or slimy. Make a friend with him. You want him on your side. Next, find the car you want. Then politely tell the salesman you have your own financing and you'll buy the car for 2% over invoice. And you want to see the invoice. If he's on the level, he'll be very happy to show it to you and sell it at that price. If he stalls or won't show it to you, drive off. All cars, except expensive luxury sedans and exotic cars have only a 5% to 8% mark up on them. That's not even close to what most people think. You'll see that when you look at the invoice. Offering 2% over is a fair deal for you and the dealership. They make a little money and you get a great price. And you just eliminated hours of wasteful haggling by connecting with the salesman, being upfront and making him a fair offer.