Somewhat off-topic, I’ll admit, but I’ve worked with Automotive clients for years helping to teach them how to sell properly so perhaps I’m well placed to help you get the right deal for you. Having just bought a used Toyota Verso, here are my practical observations:
Choose your car before you go to the dealer
Car sales executives will want to sell you the car that best suits them, whilst (more or less) meeting your requirements. This might be a car that’s been on the forecourt for a while or one that the sales executive has been incentivised to sell for whatever reason.
Use the internet and personal recommendations to select your car. Check out What Car and pay particular attention to the user reviews (whilst bearing in mind that reviewers are self-selecting: either gloriously happy or, more likely, bloody angry!).
Once you’ve generated a short-list based on your requirements, find possible cars using each manufacturer’s used stock service (usually found from their main web page). Most services include the ability to select a maximum distance you’re willing to drive to find a car. From this, you will have an idea of whether you can afford your preferred cars: if more than one remains from your list, go and test drive them in order of preference.
Make sure you know roughly what the car you’re buying is worth
Go to Parkers and use the free valuation service to see how much you should expect to pay for the car. You shouldn’t expect to pay any more than this unless the car has done fewer miles or is in exceptional condition.
Know the value of your part exchange
You can get a valuation via Glass’s Guide. Currently, Vauxhall are giving away free valuations. Be honest about the condition of your vehicle: it’s likely to be in “average” condition (that’s what “average” means, after all). Don’t tell the sales executive that you have this information: it could be useful in the negotiation process.
Go to a main dealer
If you possibly can, I suggest going to a dealer that specialises in the car type you are looking to buy. You will then get a manufacturer authorised health-check, a one-year warranty (usually, sometimes longer) plus membership of the driver’s club. You can also feel a little more confident that you’re not buying a lemon since these dealers have more of a reputation to protect.
Test until you’re happy
You can test drive as many cars as you like: it’s a lot of money and you must be happy with it.
Ask for a price for the deal
Make sure the Sales Executive gives you figures for both the part exchange and the car you’re buying. It’s essential that you get a complete breakdown and the sales exec might resist giving this to you because they don’t want to argue the toss about each figure
Mull it over
Don’t let them convince you to sign on the dotted line that moment (unless you’ve driven a long way to get there and are completely happy with the deal). Think it over, make sure that you’re happy with the figures and if not, come back with a counter-offer the following day. Do this by email if you possibly can because it limits their ability to use their patter to confuse the issue. It also gives you a paper trail
If they try to convince you to buy today, simply keep repeating “I need to think it over tonight, I’ll come back to you tomorrow” as there’s really no answer to that.
First, negotiate on the price of the car you’re buying and then, when you’re happy with it, negotiate the part ex price IF they have undervalued it (as they did in my case). Tell them you’ve checked on Glass’s (which is the service they use themselves).
Don’t buy any add-ons
Dealers make LOTS of money from Add-Ons which means they’re unlikely to be good value for you. If you think you’ll benefit from GAP insurance then buy it separately online as it’s MUCH cheaper done that way. If, on reflection, you want any particular add-on, you can always go back.
Pay by debit card
Dealers will charge you around 3% to pay by credit card and banks will charge for drafts so the most economical way to pay is by debit card if you possibly can.
So, my main advice is to be well informed, confident and upfront but to examine carefully every single statement the sales executive makes. They simply can’t help coming out with white (or not so white) lies such as “my boss insists I ask you” or “ok, although we said we wouldn’t budge on price, we haven’t had to give any other discounts today so maybe we can” or “the FSA says we must offer you GAP insurance” (all of which I heard this week). This is mainly fluff which is part of their persona as sales people: if it’s important to you, get it written down.
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