A highly effective technique is to negotiate with car dealerships by email. It allows you to control the situation by having car dealers compete against each other instead of competing with you.
Negotiating by email can be done from the comfort of your computer, tablet, or smartphone. Keeping you from driving from dealer to dealer, spending hours haggling with car salespeople over price.
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Before 2000, negotiating a car deal by fax was the super-secret strategy for getting a great price on a car. I’ve had car salesmen tell me they occasionally see fax quote requests. However, the overwhelming majority are email requests that go into a dealership’s internet department.
Before contacting a car dealership by email, you’ll need a starting point for your negotiations. You can get this information by requesting free no-obligation price quotes from online new car listing companies.
You’ll want to get quotes from at least seven different dealerships. It will give you an idea of the popularity and demand of the vehicle you’re considering and which dealers in your local area are more willing to negotiate.
The quotes you receive will also have an individual’s contact information if you have any questions about the vehicle. You will want to keep this information for later use.
Dealers know when you are shopping for a car online, you’re inquiring with several dealerships and are looking for the dealer that will provide you with the best price. This forces them to aggressively discount the vehicle to you or risk losing your business to their competition.
The theory is once you receive your free quotes, you’re supposed to pick the lowest one, go to the dealer, and drive away in your new car. This system works, and it’s a great way to avoid confrontation with front-line salespeople and get an excellent deal on a new car.
The general idea is new car price quotation websites allow you to submit a request for quotes, choose the lowest one and then visit your selected dealer to purchase your new vehicle.
95% of the time, it’s a pretty good deal when you receive a discounted price quote from an online company such as Ryde Shopper, Motor Trend, and Cars Direct. If you’re happy with the quoted price, go to the dealership to test drive and buy the car.
However, you’re not looking for a fair price this time. You’re looking to buy your next vehicle for an AWESOME PRICE!
The following email technique works; I’ve personally seen this, and many variations of the following come through my dealership’s internet department.
The dealer is backed into a corner, and the only way out is by discounting the car’s price even more or bowing out altogether.
Feel free to copy and paste the following letters for personal use; make sure you change the names.
You’ve already received your new car price quotes from at least seven different dealerships. If you haven’t done so, use Ryde Shopper, Edmunds, and Motor Trend and get them now.
Weed through the quotes, placing duplicates or bad quotes to the side. Once you have them narrowed down, we can get started.
Although you put “contact preference – email” when submitting your quote requests, some dealers may still call you, don’t worry; they’re just trying to get you to come to their dealership first.
You may get a call or an email from a dealer. If you’re uncomfortable speaking with them on the phone, politely tell them, “you prefer to do business by email and will not do business with them unless they respect your wishes.”
Most of the time, the dealer will contact you by email. There may be a short letter that accompanies the quote that looks something like this:
You’ve made an excellent choice of vehicle; we can’t keep these cars in stock. I understand you’re an educated shopper; by using this online service, you must see that $XXXXX.XX is an excellent price, and I’m sure you want to take advantage of it immediately.
I want to discuss some of our great financing programs and extended warranty options for this vehicle.
When would you like to come in, finish up the paperwork and take delivery of your new car?
Thank you,
Internet Manager
Sales@abxmotorcars.coms
You’re going for a better deal no matter what the quote and letter say.
You should always respond to this call or email the same way as below. (cut and paste if you’d like):
[Insert Internet Manager’s Name]
Although I thank you for your quote on the [enter the year, make, model], I’d like to buy the car from you—your quote of [$XX, XXX.XX] takes you out of the race.
I’m sure your Customer Satisfaction Index Survey is vital to you, and I’m prepared to give a 100% score to whomever I buy my next new vehicle from.
I would also like to mention that I’ll be servicing my vehicle at the same facility I purchased.
If you’d like to submit another quote today, I’d consider it.
Yours Truly,
Mr./Mrs. Car Buyer
[Your e-mail address]
Send the above email to every dealer that sent you a competitive quote.
If you don’t receive an initial contact letter from a dealer, be proactive, find the email contact on the quote and send the above letter to them.
They want your business, and you’re setting yourself up for another round of price quotes with even deeper discounts than before.
You will continue doing this until all the dealers stop responding. Once they stop, you’ll know you’ve received their rock bottom price.
Some dealers will try to close you on the phone by asking you, “What price will it take to get you to come and buy the car from them today?” Be careful; the salesperson is trying to get you emotionally charged. You don’t want to make a mistake and leave money on the table.
Just be polite and tell them you’re unsure because you’re still taking bids from several dealerships in the area if they’d like to send you another offer through email.
Some dealers may try to overcome your resistance by stating there’s no way a different car dealer has quoted you a lower price and insist you show them proof. If this is the case, send the following email.
[Insert Internet Manager’s Name]
From what you’ve stated, I am satisfied with the price the other dealer has quoted me. Put yourself in my shoes. If I give you the other dealer’s quote, you’ll just cut it by $50-$100, and then I’ll have to go back and check with him, and he’ll cut your price by a few $100, and then it will turn into a back and forth nightmare for me.
I would also like to let you know that I’m prepared to give you a 100% score on your Customer Satisfaction Index Survey and I will also be servicing my vehicle at your facility.
If you’d like to send me another quote, I will look at it. It’s up to you.
Mr./Mrs. Car Buyer
[Your e-mail address]
[OPTIONAL] After receiving your lowest price quote and the dealers and the dealers have stopped responding. You can “go-for-broke” with the below letter in an attempt for one last discount.
[Insert Internet Manager’s Name]
I’ve narrowed my car buying decision to just you and one other dealer. Although your prices are very close, I’m prepared to buy the car from you if you will throw in [window tint], in writing, at no cost to me.
Yours Truly,
Mr./Mrs. Car Buyer
[Your e-mail address]
I’d only ask for something inexpensive like window tint, pinstripe, floor mats, locking lug nuts, cargo mat, etc. You may or may not get it, but you won’t receive it if you don’t ask. These items are relatively cheap for a car dealership and are commonly used to push a car buyer over sitting on the fence.
Either you will get another quote, or you won’t. If you do not receive another response, you will know that the dealer provided you with their best price in the earlier email. Again, a dealer WANTS to sell you a car.
Last car dealer that responds with the lowest bid wins!
Give yourself a massive pat on the back; you just negotiated an OUTSTANDING price. However, now is not the time to let your guard down. There are many ways a car dealer can take advantage of you in other areas of the car buying process.
About the author
My name is Carlton Wolf, and I’ve been in the car business since 1994, both retail and wholesale. I created the Auto Cheat Sheet to better educate buyers about the deceptive sales practices many dealerships use nationwide. Please understand that not all car dealers are dishonest. However, you never know who you’ll be dealing with, though. I’m willing to share my knowledge and experience with anyone who listens. Keep in mind that I’m a car guy, not a writer.
