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I negotiate deals for a living, and I think I'm pretty good at it. I love buying cars. When I bought my truck, the sales guy was in near tears. He was so desperate, he said, "I'll give you some free floor mats if you take this deal." I just laughed and walked out (he stopped me before I got into my car to leave and said, "Ok man...I'll do it...." My tips:
1) Generally, the guy (or company for that matter) writing the check holds most of the leverage. Don't fall into the "I got to have it!" mentality that plagues buyers (whether buying a car, or a company). I was negotiating a 7 figure deal earlier this week. The seller was just being annoying and asking us to make all these changes. told the seller, "If you want the money, accept our terms. We aren't making any more changes. If that doesn't work for you...see ya" His response (via email), "Please circulate the document." LOL. This principle applies more so in a non-competitive deal (i.e., no other buyerss to take what you want). Cars are a dime or dozen, so you hold all the cards.
2) The party that names the price first, loses. Always tell the seller to name the price first and go from there (or if you are the seller, say, "how much will you pay for it.") You may be surprised at what you hear.
3) Don't negotiate against yourself. This is like point #2. Don't start throwing out numbers or terms because the other party is silent.
4) Create a competitive environment in YOUR favor. Tell the dealer that you are talking to other car dealers (even if you aren't). Make him compete against his competitors (actual or imaginary).
5) Research. If you have to, print absurdly low prices for the car that you find on eBay, craigslist, etc.
6) If it is used and the dealer is known for reselling auction cars, find someone who has access the Manheim auction prices and see if you can find the car they are selling. I almost bough a Porsche 911 turbo (used), and I found how much the dealer paid for the car because they bought it at auction (exact color car with same miles-it had to be the car). I told the dealer, point blank, "I ain't paying much more than what you paid for it." Dealer wouldn't do it, so I left (and bought a Benz). The porsche was on the lot for a looooooooooong time (and I doubt he got what he wanted for it).
7) Look into financing before you go to the dealer (if you aren't paying cash). Car dealer financing is a racket.
Just my 2 cents...
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