Car Negotiation Coach

Ever get a weird look because you didn’t realize the window was down as you were belting out Lady Gaga at the stop sign?  Don’t feel bad, we’re all guilty of a few “auto indiscretions”.   I’m sure most people can admit to succumbing to a at least a few of the items in this list. 

1. Blasting tunes and singing karaoke. How can you resist singing along to Peter Cetera or Christopher Cross?  Just me?  How about a little Hall and Oates?  I know I’m not the only one that loses his voice after a long road trip.
2. Flashing your lights at opposing traffic to warn them about a speed trap.
3. At a two lane stop, speeding up just a little bit faster than the guy next to you.  You’re not quite racing, and maybe the other driver didn’t even notice, but sometimes you just need to prove you’re faster.
4. Hitting the drive-through for a late night milkshake (or cheeseburger).  Late night fast food is just so bad….and yet soooo good.
5. Doing donuts in an empty snow-covered parking lot.
6. Driving past your own street or house. On a beautiful day or a cool summer night, you decide to take one more trip down that windy road because you just aren’t ready to be home yet.
7. Trying to see how close you can get to an empty gas tank before filling up or getting stranded.
8. Not coming to a complete stop at toll booths.  I’m not talking about EZPass, but instead the old fashioned kind.  It’s so tempting to throw your money at the change bucket and see if you can avoid coming to a stop before the toll light changes or the arm-gate goes up.
9. Trying fancy trick shots at toll booths. Speaking of throwing your change at a toll booth, ever try a trick shot?  Perhaps seeing if you can get your quarters into the bucket from the passenger side window?  This was big when I was younger at the Jersey Shore.
10. Paying for the guy behind you.  Ok, enough about toll booths…but it’s fun to occasionally surprise someone by paying their toll for them.  This works when travelling in a caravan or even for a complete stranger.
11. Not stopping to check a map or GPS even though you are completely lost.  Instead you trust your “man-sense” to get you to your destination.
12. Flashing your lights or honking in the passing lane to get a slow driver out of your way.
13. Doing the arm motion at a big rig so he’ll blow his horn.  Smokey and the Bandit style!  Fun for kids of all ages.
14. Speeding up on a back-road to hit that sudden dip in the road to make your stomach drop.  It feels like being on a roller-coaster.
15. Slowing down to check out a member of the opposite sex.  Is it a crime to want a better look at that sexy jogger? Well maybe….depending on just how slow you go.

Got any other guilty pleasures?

Do you have to pay the full advertised rate for a gym membership?  Of course not!  Working out has many obvious benefits, but there’s no reason to pay top dollar (no offense Sam).  By introducing competition and negotiating at the right time, you can get a great deal on a gym membership.

Get competitive prices around town

Even if you already know the gym you want to join, it pays to shop around first.  Maybe there is only one gym within 30 minutes of your house or there’s only one with a basketball court.  That doesn’t matter, you can still bargain.  Just let the salesperson know you’re entertaining other options, and play a little hard to get.

Take the time to check out other gyms around town and get prices.  This way you’ll have some ammo and can share the better offers you received making the process competitive.

For each gym you visit, be friendly and take the tour if they make you (which they always do).  Before you leave, get a quote, a salesperson’s business card, and leave your phone number.  Visit your most desired gym last. [CONTINUE READING]

Just like buying a car, tires are negotiable. This is good, because tires are one of the more expensive (but important) parts of your car to maintain. 

The Penny Test is great way to check if your tires need to be replaced.

Take a penny, turn it upside down with Lincoln facing you, and put it in between your treads.  If you can see the hair on the top of Abe’s head, your tires need to be replaced.

Start by Searching for Tires Online

Before you negotiate, you’ll want to find a few places that offer competitive prices on car tires.  Go online and get prices from websites like the Tire Rack. 

It’s not hard to figure out what size tire you will need.  You’ll be asked the make, model, and year of your car and the website will tell you what size tire fits your vehicle.  In addition you’ll be able to choose between a couple different performance or quality levels. 

Once you determine the type of tire you want, make a note of the model and price so you can see if you can get it cheaper elsewhere.

Popular brands are easier to negotiate because more stores will carry them.

Find a Local Dealer

When you get prices online, check to see if they partner with any local installers or just google “tire dealers” (or Goodyear).  Just about everyone will install tires for you if you buy them elsewhere, but not everyone will allow you to ship tires directly to their store.  This is worth checking on, especially if you have a smaller car that may not be able to fit two or four tires inside or if you don’t want the hassle of transporting your tires.

Remember the Extras

In addition to the cost of tires, you’ll usually be charged by the installer for these items:

• Mounting/Balancing
• Valve stem installation
• Disposal of old tires
• State fees and sales tax

This can run you an extra $50-$100.  Be sure to remember these items and the cost of shipping when comparing online prices to a local tire store.  Also, keep in mind the value of any tire warranties, rebates, or free rotations that come with the deal.

Negotiate the Best Tire Price

After you’ve identified a set of tires online, call your local tire shop.  Start by asking them if they will install a set of tires you are going to buy online (and if they will accept direct shipment).  This will usually prompt them to ask you what model tires you want and what price you’re getting. 

Many times, the tire shop will come right out and offer you a better price.  But if they don’t, go ahead and ask them if they can beat your price.  You’ll be surprised that they are usually willing to make a deal.   And if they can’t beat your price, consider calling one or two of their competitors. 

Do you have an expert money saving tip when buying tires?

My friend Len Penzo recently mentioned “Grape” as a slang term for a clueless car buyer.  I’d never heard the term, but was inspired to dig up some other insulting car dealer jargon for your reading enjoyment. 

Car Salesman Terms for Customers and their Trade-ins

Beback: A customer who doesn’t buy and swears they’ll “be back”.

Babysitter: A co-signer on a loan.

Blue Hair or Silver Hair: A senior citizen.

Bomb: An old car with no value.

Bunny: A customer who does not negotiate very well and is taken in for huge profits.

Buried: Describes a customer who owes far more than their trade-in is worth.

Crop duster: A car that blows smoke out of the tailpipe. 

Deadbeat or Roach: A customer with a bad credit history. 

A “Get Me Done”: A customer with bad credit that is more concerned with getting financed than the vehicle they buy.

Grinder, Short Arm, or Chisler: A customer who spends hours haggling over a small amount of money.

Lay down or Grape: A customer with no spine who says yes to everything. They “lay down” and get run over or crushed like a grape.

Maypops: Bald tires. 

One Legger: Usually refers to a husband without his wife.

Player: A customer with a good credit history. 

Quarterback, Second Baseman, or Third Baseman: Someone a buyer brings along to coach them or help negotiate a deal.

Sled, Turd, Clam, Toad, or Rat: An old trade-in which is banged up and worth little or nothing.

Slide Ruler: A customer who is a specification nut. He may even have a “slide ruler” or pocket calculator to calculate his own sales tax.

Stroker: A customer who gives the impression that he wants to buy a car, but doesn’t have the means to do so.

Tire Kicker, Blower, or Rubberneck: A customer who has no intention of buying. 

UFO: U Frickin’ Own it! (PG-13 version) Said to customers that want to return a vehicle.

And here are a few more unusual ones I just learned from Mike’s Liberal Car Blog:

Squirrels: customers with no loyalty to one salesperson

Disneyland shoppers or bumblebees: customers that can’t decide between three or more cars

Strokes: time-wasting shoppers

Bogues: same as strokes

Ghost: customer with no credit score

Fairy: pipe smoking, folder carrying, internet customer

And Mike’s (and my own) favorite…

“RUNNER !!!”:  This is what is yelled when a customer gets up from the negotiating table and proceeds to walk out the door. The customer gets up and the salesperson says, “We got a RUNNER.”

Know any car dealer slang that I’ve missed?

“When there’s no more room in hell, the dead will walk the earth” -Dawn of the Dead

Everyone knows sooner or later, we’ll be completely overrun by zombies.  What most people don’t realize is that you can only stay barricaded in your house for so long.  Eventually you’ll run outta spaghettios or your neighbor is gonna break in and try to eat you. 

When that happens, you’ll want some wheels in a hurry.  And you’ll quickly realize that your vehicle requirements have changed significantly.

According to ZAC, you should ask these questions when selecting a car:

• Range: How far can your vehicle travel on a single tank of gas?
• Speed: If you needed to haul back to base for some A.S.A.P.  medical treatment, could it get you back fast enough?
• Load Capacity: Can your vehicle haul significant amounts of  supplies, survivors, pull a trailer, or tow a disabled vehicle back for repair?
• Road Clearing: Does your vehicle have the ability to push another vehicle off the road, or plow through a horde of  undead and still be road worthy?
• Ground Clearance: Can your vehicle go off road, hop curbs, and drive over bodies?
• Fuel Type: Will fuel for your vehicle be widely available post Z-Day?
• Armor: How much customizing and up-armoring would your vehicle take to be zombie and attack proof?

Good vehicles will be hard to find, but here’s my favorite choices if you have time to be picky…

Hummer H2 (seen in Zombieland)

A classic first choice.  With a history of military use, the Hummer is rugged and can plow through or over many obstacles.  Plenty of passenger room and storage space for supplies. 

Major weaknesses: Horrible gas mileage and a huge target for looters and gangs to take away from you. [CONTINUE READING]

Anyone that’s been through a big move knows it’s a painful process.  Finding a reputable mover at a reasonable price can be a challenge.  Add to that the stress of packing, trusting strangers with everything you own, and setting up life in a new place can give anyone a headache.  But hopefully, these tips that will make the process a little more bearable (and affordable). 

Before you select a mover, remember that moving services are negotiable, but you only want to consider the highest quality moving companies.  Unlike some other industries, you don’t necessarily want to find the cheapest company out there.  Start by asking friends for referrals and lookup each company with the Better Business Bureau.  Narrow your search to 3 or 4 reputable movers and then make them compete against each other. 

You may have read how to buy a car by creating a competitive bidding situation.  But did you know the same negotiating technique can be used in a variety of other situations? 

• Haggling for lawn care treatments
• Picking a moving company
• Selecting contractors for home improvements
• Getting the best interest rate for a mortgage (or re-finance)

We’ll explore more of these topics in future posts.

Get Moving Estimates

Start out by calling movers and getting estimates.  Make sure you ask each company to quote the same things.  Each estimate should cover the same inventory and contractual items.  You want to compare apples to apples. 

Some companies will provide an estimate over the phone and others will walk through your house inventorying every item. Estimators will estimate the weight of each item individually and use that to calculate the weight of your entire house.   

When getting an estimate, be sure to address these items to avoid surprise charges later: [CONTINUE READING]

It’s easy to get confused by car industry jargon.  One mistake I often witness is people mixing up new and used car terms. 

For example, I’ve had several people tell me something like,  “I can get this USED car for $3600 below MSRP, sounds like a great deal…right?” 

Unfortunately for them, this can be an expensive mistake.  Both MSRP and invoice price only apply to new cars.  As soon as you take the car off the lot, these terms mean nothing.  If you compare the price of a used car to MSRP, you won’t account for mileage, depreciation, and the current market value of the car.

MSRP (Manufacturer’s Suggested Retail Price) is the retail price displayed in the window of all NEW cars.  

Invoice Price (or dealer cost) is the amount paid by a car dealer to buy a NEW car from the manufacturer.   

What you’ll pay for a new car is usually somewhere between MSRP and invoice (however, you can occasionally buy a car below invoice).  When discussing NEW cars, it’s acceptable to say “I got the car for $300 over invoice” or “I was able to negotiate $1800 below MSRP”.  But never use these terms for USED cars.

Once a car becomes used, the only term you should consider is the car’s market value: how much people pay for a car on average in the used car market.  You can easily lookup market value using Edmunds True Market Value.  

While you’re here, why not check out posts from a few friends: 

• Very strange car photos (like the one above courtesy of Just a Car Gal)
• Tips for Buying a Used Car (Everyday Tips and Thoughts)
• Top negotiating strategies when buying a used car (AutoMonster.ca)
• Car Dealership Tricks to Avoid (Five Cent Nickel)
• Calculating Fuel Economy (Canadian Finance Blog)
• Save Money on an LCD TV (Yes, I am Cheap)
• Is now the time for a mortgage loan? (Personal Dividends)
• What to do with your money in your 20s, 30s, and 40s (Free from Broke)
• 5 Ways the recession has changed consumerism in America (My Dollar Plan)
• The problem with being budget minded is other people (Watson Inc)

If you’re a frugal shopper and want to be certain you get the best possible price on a car, then you’re in the right place. 

My goal is to make the car buying process less mysterious and teach you how to get a great deal.  Rather than make you search through all my old posts, I’ve put my best car buying tips in one place.

Before you reading anything else, here’s the cornerstone of my car buying strategy. How to buy a car by systematically negotiating price 

Here’s a recap of my best advice about buying cars from the past year: 

Want to keep up?  Here’s a few other places you can find me:

• Follow me on Twitter
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• Follow me on Digg
• Follow me on Reddit