zonomo, I have been a salesman, truck manager, sales manager and finance and insurance manager in the car business, so I know every little trick there is to know in that business.
First off you should go to nada.com to find the approximate value of the car you are interested in. There are 4 numbers for every car, the highest is clean retail, the lowest is rough trade in and that number is what banks use as loan value. When looking at a high end German car you have to take into account supply and demand. Every dealer makes their money on used cars and a short deal on a used car is 1000-1500 over what they took the car in for. Many times the person who appraised the car paid too much trying to sell a new car so they may own the car way too high.
My suggestion is let your fingers do the walking. You want to get as much off clean retail as you can and if you can get it close to average trade in then you are paying close to wholesale. Find a car that suits your needs on paper, call the dealer on the second or last day of the month as managers live and die by the month. Negotiate on the phone as a cash deal before you walk in and if it is a number you can live with then check out the car. Never let them think you are hot for the car, and unless they have a special financing deal from the factory, you are better off getting your own financing. try to get a certified used car that comes with bumper to bumper coverage( this will cost more but is worth it), and always remember that a dealer in many cases make more money on the back end of the deal i.e financing than they do on the front.
In today's world salesman are no longer able to work their own deals so they are at the mercy of their managers. Their strategy is to get you in and wear you down, that is why you want to negotiate before you go in. If they are unwilling to do that then find a dealer who will. Explain you are a busy man and you will not waste time there and if they want your business they will do it your way. A dealer will try to make 4-6 grand of profit on a used car but will settle for 1000-1500 if they are desperate to make a deal and the car in question is not in high demand. If you are looking for a car in high demand then you are not in the drivers seat, it is that simple. The dealer will wait until they can get the number they want. Make sure when you are negotiating you get the salesmans name and the managers name and if you do arrive at a figure, make the manager put it in writing and email it to you or fax it to you. Assume at all times they are lying to your face as there are very few dealers who are straight shooters, hopefully you can find one. If you do find the car at the right price, leave a credit card deposit of 100.00 over the phone in lieu of looking at the car. You want to make them commit to the number and if for some reason you do not like the car when you see it, you can get your money back. Some dealers will try to low ball you to get you in the store and then try to work on you, this is why you need everything in writing.
If you are looking for a specific color, mileage, make and year of an in demand car, then be prepared to pay. These guys are not stupid, the know what they have and what they can get for it. Hopefully you can find someone desperate on the last day of the month and get a good deal. I took plenty of shit deals on the last day to make my numbers.
