CarHagglers in AutoEXPRESS
The AutoEXPRESS Challenge!
The UK's ace negotiators Neal Bircher and Patrick MacManus show readers - and
you - how to get a new car bargain
Haggling masterclass
--------------------------
1. Keep it simple. Haggle and take charge.
2. Don't feel pressurised to part with deposits or prove deals. If the sales
executive won't budge, simply leave.
3. Agree on the options first, so that the haggling is about price and nothing
else.
4. if you haven't got the deal you want, call back in half an hour and see if
you can change your mind.
5. try haggling by phone, as it avoids face-to-face conflict.
Ian Dickson
DON'T be scared by the sinister looks of these men in black - unless you're
a dealer! The sharp-suited pair run internet firm www.carhagglers.com and are
experts at knocking sales executives down to their rock-bottom price. Using
only a phone, they saved us a massive £16,048 on 10 cars in one hour (see
panel *below)
Normally, they *negotiate with dealers on behalf of haggle-shy buyers in return
for 20 per cent of the saving they make. But Auto Express persuaded Patrick
MacManus and Neal Bircher to reveal the tricks of their trade, and coach three
readers in the art of haggling. Before the lessons began, we assessed our readers'
negotiation skills as each visited a dealer without any tuition. They took with
them a special mobile phone, fitted with a high-powered microphone, which enabled
us to listen in to their conversations undercover from the comfort of the Volkswagen
Caravelle Haggle Headquarters waiting outside.
After our readers had returned from their first showroom visit, Patrick and
Neal told them where they were going wrong and explained the right way to get
the best deal.
The final step was for our car buyers to put their new skills to the test at
a different dealer in the afternoon. Did the coaching work? *Read on to find
out what happened....
DEAL OR NO DEAL?
Name: Henry Tse
Age: 30
Lives: Market Harborough, Leicestershire
Occupation: Runs a car valeting business
Wants: Renault Clio 1.2 Expression
Budget: £9,000
IT'S important to know exactly what you want before you start haggling, otherwise
the sales executive will sell you a vehicle they're struggling to shift. That's
a lesson Henry learned at Renault Slough, Berks, thanks to an indecisive start,
"I'd like something sporty and I'm not sure if I'll be paying cash or using
finance.
The dealer pointed Henry towards a pre-registered car! "This is virtually
brand new, " he said" "Renault is the first name in the logbook.
The car has only done 54 miles. "Henry asked for the best price, with the
salesman quoting £8,974, adding that new, the model was £9,610.
Listening into the conversation, Patrick said: "That's a rubbish saving
for what is effectively a second-hand car. He should go for a better deal"
All Henry could get was an extra £100 off or free mats and half a tank
of fuel.
Afterwards Neal told him: Negotiations went on for an hour - 15 minutes should
be the tops. if you can't seal the deal in that time, move on to another showroom.
And don't just ask for the best price, as they'll never tell you the truth.
Next time, take charge and offer them £8,000, but don't reveal your budget."
At Bridges Renault in Reading, Berks, Henry went straight for the jugular. "I'd
like a new Clio 1.2 Expression three-door," he said, confidently. "£8000
and we've got a deal. "The salesman said the best he could do was £9200.
After a bit of banter, this dropped to £8,710, with Henry offering £8,300.
The dealer came back with £8,500, adding that he wasn't willing to negotiate
any further.
Pleased with his progress, Henry headed back for his haggling debrief. Summing
up, Patrick: said: "The car's list price was £9,610 so Henry managed
to get a £1,100 discount_ that's an impressive 12 per cent - in less than
15 minutes! And the sales executive didn't even offer any mats, because Henry
told him exactly what he wanted to pay."
Name: Louise Chamberlain
Age: 27
Lives: Ruislip, Middlesex
Occupation: Co-ordinator for a charity
Wants: Volkswagen Eos 2.0 FSI Sport
Budget: £21,000
LOUISE has never haggled for anything in her life, so getting a deal on a desirable
new model such as an Eos would be a baptism of fire.
She visited VW Windrush in Maidenhead, Berks, to try to negotiate a £735
discount, but the salesman played hard ball. "There's a waiting list, so
there's no movement on the price. The best I can offer is free mats and a tank
of petrol," he said. Louise called it quits.
At our post mortem, Patrick said: "She didn't push hard enough, but a £735
discount on this model is ambitious. Around £300 would have been more
realistic. Louise should have told them to keep any sweeteners and knock their
value off the price instead." Fully briefed, we headed for Ridgeway VW
in Reading, Berks. Louise was more confident: I need your best discount on an
Eos. I want to buy it today cash. What can you do to make me buy it from you?"
she asked.
Patrick was pleased with Louise's approach, but thought she should have been
even more assertive by making a direct offer. Initially, the salesman refused
to budge on price, but after more negotiation, she managed to persuade the executive
to speak to his manager. He was still very slow to get to figures when he returned,
asking Louise if she wanted non-essentials such as wax protection. "The
salesman is waffling to try and take control, " said Neal . Sure enough,
discussions eventually ground to a halt and Louise headed back to base.
Neal said: "It's always going to be hard to get a deal on a car such as
the Eos - but not impossible." To prove it, he called Windrush VW saying
: "I understand discounts are small, but whoever can offer me some sort
of deal will get my business. You're my local branch and I'd prefer to buy from
you." It worked - the saleswoman offered to include a windbreaker worth
£240. "Take £240 off the price instead" bargained Neal.
Reluctantly, she agreed.
Name: Jason Shing
Age: 28
Lives: Leicester
Occupation: Store manager
Wants: Mercedes E280 CDI Elegance (plus options)
Budget: £37,000
STORE manager Jason Shing knows a thing or two about haggling. He is asked
for discounts all the time, but hardly ever gives them. How did he fare when
the tables were turned?
First stop was Greenoaks in Slough, Berks, where the salesman had his routine
down to a fine art. "Have you been to other dealers and how much do you
want to spend?" he asked.
Patrick explained this was a classic tactic: "Make him offers, but do not
disclose how much you can afford," he said. But Jason fell for the ploy
and after choosing the options, the total for the Mercedes was £40,095!
The salesman started to talk finance, explaining how he could make the deal
work, quoting PCP with monthly payments exceeding £500 and a £16,000
final sum. This worked out at £37,700, saving £2,395 - but Jason
wasn't tempted.
Back at HQ, Patrick explained to Jason where he went wrong: "It's a mistake
to talk finance before finalising the total price of the car. Say you are paying
cash, then discuss the money side after you've got a firm deal."
So Jason tried again at Greenoaks in Reading, Berks, only this time he made
an ambitious direct offer of £34,000 for an E280 CDi. The salesman claimed
£38,700 was his best price, so Jason upped his figure to £36,000.
Coming back with a £38,300 offer, the salesman added: "If you can
show us proof of your best deal we'll match it, otherwise £38,300 is all
we can do."
Listening in back at our Caravelle, Neal said: "You should never reveal
to a salesman what other deals you have on the table." Jason disclosed
nothing and decided to walk away.
Giving a debrief, Patrick said: "Many people would have caved in and accepted
the £38,300 price. Jason did the right thing in not doing so. He has the
right technique and will get a better deal from another showroom. That's the
thing about haggling - it just takes patience and a bit of effort, but the savings
are well worth it."
AutoEXPRESS,
November 2006