So you’re ready to buy a car and it’s time to call the dealer and make an offer.
How do you maximize your chances of success, even if you’re going to offer a low number?
Here’s a quick primer to make you as attractive as possible to a selling dealer while keeping you from spending too much.
This will work for you not only on exotics, but also luxury cars and more traditional daily drivers, albeit less effective the more mass-produced the car is.
1. Know your number and stick to it.
Your offer should not be random.
Take the time to do your research and understand what the car is really worth by determining it’s bottom cash value as taught in Exotic Car Hacks.
Remember that auction values are rarely accurate in the world of exotics as they do not accurately factor in specs, but rather price all cars the same based on mileage and condition.
Set a maximum you’re willing to pay and don’t go above that threshold unless you’re willing to absorb the guaranteed loss that will come with it.
To some people that may be 20% above bottom cash value, while others might be comfortable only going 10% above.
As hackers, we don’t like losing.
Stay unemotional and stick to your data.
2. Get pre-approval.
This is important both transactionally and reputationally.
There is nothing more annoying to a dealership / salesperson than a customer who strings them along, hammers them on a deal, and then can’t get financed.
Make sure you’re following the financing instructions in Exotic Car Hacks so you know how to get the proper leverage from the banks.
In today’s economy it’s not unheard of to get rates for as low as 2%. Shop around for the best pmes or get access to all our exotic-friendly lenders as a member of Exotic Car Hacks.
You don’t even have to use your pre-approval (remember, using dealer financing can help you get a better deal), but you should only be going after cars you know you can get financed for.
3. Always make sure your offer is pending a clean PPI result.
Every single time.
There are no exceptions.
Even if it’s certified pre-owned.
Even if it only has 1,500 miles.
Even if the dealer says you don’t need to do it.
And if they refuse, RUN from that deal.
Don’t know what a PPI is?
It’s covered in-depth here, but for starters, it’s essentially a third party pre-purchase inspection (PPI) by a professional.
Usually PPI from an independent mechanic can cost anywhere from $ 150 to $ 300 depending on the marquee.
They will uncover hidden issues not disclosed and then it is up to you to decide if its worth negotiating further, or passing completely.
Don’t skimp on $ 300 now to save on $ 15,000 in repairs later.
4. Use the 30/60/90 rule.
Dealers are MUCH more likely to dump a car they’ve had as it approaches the 90 day mark.
As we covered in a previous article if a car listing is a scam, pay attention to the market and see which cars aren’t selling.
No dealer wants to hold a car longer than 90 days as it eats into their profit margin.
End of month and end of year deals are a real thing for dealers to buff up their books.
Use this to your advantage when making a deal.