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rickencin

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Reply with quote  #1 
I think I watched a YouTube video that contained the phrase "He who cares the least, wins."  I may have heard it somewhere else.  Seems backwards.  The student who cares the most, wins, etc...  The essence of it is that the person who cares the most in a negotiation makes the biggest concessions and the person who cares the least makes the smallest concessions.  If you gotta makes the deal, you will make all most any concession.  

I just bought a new motorcycle. This is a total snake pit.  One advertised deal on a motorcycle with the same MSRP as mine was "dealer discount $2,000, Added Dealer Markup $2,695".  The other common fees are delivery, dealer setup and documentation (maximum $85 by law, which I thought was $55) on top of this.  Of course, there is always sales tax and registration which goes to the state.  The California DMV conveniently provides:
https://www.dmv.ca.gov/portal/dmv/detail/portal/feecalculatorweb

Then they can get you on ez monthly payments, up charging the interest rate, extended warranty and insurance.  My first offer was $1,599 for a four year extension of the 1 year warranty (which they referred to as a five year warranty) from a third party warranty company.  The warranty I actually bought was $850 for HondaCare Protection Plan. I was totally going to skip warranty, but the price got really reasonable. The four square method is a famous ball of confusion. They are required by law to provide you with the financed amount, rate and term (number of months), but I have never seen this until the contract is typed up, after the negotiation is over.  You can still not sign it.  It really tick me off that dealerships expect you to be completely honest and make firm commitments when negotiating, when the salesman can say "had my fingers crossed, the sales manager wouldn't go for it."  They want to shock you with rude treatment and big fees, shock them back.  If they don't have the power to negotiate, they are order takers and should be treated as such (politely if possible).  Real estate negotiations are almost always carried on agent to agent.  All of your brilliant observations will likely be flushed down the toilet, by the time the offer gets to the other party. Make it work for you.

Of the 15 motorcycles offered for sale between here and Los Angeles of my model I found 1 dealer who actually advertised only $1,150 over MSRP.   Ah, the importance of a crumb of actual information. So I figured I would take a practice run on my negotiation routine at my local dealer, before going to this dealership an hour away.  I totally didn't care if it failed, it was just practice.
I also remembered the advice "Be like a pile of pillows: absorb all the energy of the punch and just keep smiling."  It's tough to beat up a pile of pillows.  So I had a whole routine worked out in my head where I would be the happy, carefree smiling one and the dealer would be the annoyed, upset one who was anxious to close the deal.
My nearest local dealer did have a tag reading $1,900 Additional Dealer Markup on top of the $12,999 MSRP.  So my first offer was about $1,200 off that (which I thought was shocking).  I was all prepared to do battle when the dealer accepted my first offer.  There is a legitimate $380 delivery fee included in this markup. No separate "setup" fee that usually runs $500 to $1,000. This is the first time that has ever happened to me.  So obviously, I left some money on the table.  Still, I didn't get bit in the other snake pits.

So, care the least, don't be afraid to be rude and blunt and absorb all shocks like a pile of pillows.  "Is that a required question?" "What answer will get me the lowest price?" Of course, you want to be able to do all the math and confirm that the final contract doesn't have any "$200 errors in banks favor".  I've had dealers try to not take the trade in off the price and charge me again for delivery, when I specifically included it. Of course the contract states that nothing said to me verbally has any validity, only the signed, written contract.

This negotiating strategy stuff really works!

I won't care about any of the negotiating when I am out in the breeze tomorrow, riding the twisties!

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Rick
javipa

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Reply with quote  #2 
Great illustration!
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"Obstacles are those frightful things you see when you take your eyes off your goals." --- Henry Ford "

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