OT: Car Buying tips...

[HandSanitizer]

Quick question for any car buyers out there.

If a car company like Chevy, Ford, Dodge etc. is offering a cash rebate of 3,000 cash back. What does that mean for the dealer? I am trying to figure out what I have to do to get a bargain and I figured if the dealer is getting a check for $3,000 from the car company then that really should not be used against me in wheelin and dealing if you know what I mean. Right?
I just want to know if the dealer is getting paid on this from the car company

Any advice?
Thanks!

 

[brianhos]

Yes, they are getting a check from the manufacturer. Work in the holdback too, they get $500+ from the manuf to finance the car too, so even at invoice they are still making $$. In this market right now you should not be paying over invoice before the discounts.

 

[joefrog]

Yes, they are getting a check from the manufacturer. Work in the holdback too, they get $500+ from the manuf to finance the car too, so even at invoice they are still making $$. In this market right now you should not be paying over invoice before the discounts.

I agree. Make sure and visit sites like MSN autos and others to see what the dealer cost is. The better informed you are as a customer, the less you will pay. In fact, search online what the current asking price is for cars sitting on local lots are, then post figures here. Give as many details as you can, and I guarantee somebody on here can tell you what you should pay.

Paging Phaedrus............

 

[HandSanitizer]

Thanks Guys...
So if I wanted to by a Vehicle for 27,500 and the rebate was for 4,000 the dealership is getting the 4K back? So they really can't pimp that rebate too much at the dealership because they are getting that money back right? So I would be pretty much working the dealership on the price not including the rebate.

This is confusing

 

[brianhos]

Thanks Guys...
So if I wanted to by a Vehicle for 27,500 and the rebate was for 4,000 the dealership is getting the 4K back? So they really can't pimp that rebate too much at the dealership because they are getting that money back right? So I would be pretty much working the dealership on the price not including the rebate.

This is confusing

If the invoice is 27,200, you should just tell them to forget about the rebate, and you will pay $27,000, so with rebate you should be in the $23 range. The rebate will be a check to you, that you can either give them, or just keep. Tell them you want the rebate and are willing to pay $27,000, then you can cash it. Or if they want it, take $4k off whatever you negotiate. Or buy me lunch and I will come over and be a stick in the mud for you

 

[dmclone]

If you're buying a vehicle with a 4K rebate then you have a lot more negotiating room. Check out this site and se what otehrs are paying for the model you're looking at.

CarSpace - CarSpace Automotive Forums

Look for your specific model and there should be a link called "prices paid"

 

[HandSanitizer]

Man... You guys are good! Thanks!

So since they are getting the rebates then I should treat the price at 23K for negotating since they get the cash for the company.

 

[brianhos]

Man... You guys are good! Thanks!

So since they are getting the rebates then I should treat the price at 23K for negotating since they get the cash for the company.

If they are getting the rebate, yes.

 

[Cyclones_R_GR8]

Normally the rebate goes to the consumer. Some ads will have a low price for a vehicle and in the small print they will say that the dealer keeps all rebates and incentives.
The best advice I can give is decide which features you definitely want and which features you can live without. Determine the price you want to pay before you walk onto the lot and negotiate to that price. Once you get to a price you are willing to pay try to get an extra $500 - $1,000 off.
Do not fall in love with any car and always be prepared to walk away.

 

[cytech]

I just bought a truck in May what I did was went around locally and found the options I wanted in the truck and the brand I wanted. Then I searched for dealerships within 150 miles online. Picked the ones with their inventories on their web sites, and did all my offers and negotiating over e-mail.

If you are looking at a vehicle with a 4k rebate that means it is likely something not fuel efficient such as the vehicle I bought.

Which means you have alot of negotiating power. Figure out all the rebates I used www.edmunds.com . Also figure out the holdback (if you can't find it I have a list of the percents for each brand) then make your offer online for invoice - rebate - holdback. Most you should have to pay is dealer invoice - rebate.

 

[HandSanitizer]

So here is round one. I went in right before they closed so I only had a few minutes.
Price of the New Vehicle - 27,500
$2,000 Customer Cash Back allowance + 2,000 Bonus Cash Allowance (what this means for the dealer I still don't know)

I brought my vehicle in for them to look at. Just as I expected they wanted to give me the "Good" Kelley Blue book value @ $4500 trade in.

They broke out the magic 4 square and said this is what we can do.
27,500 - 4,000CA - 4,500 Trade = $19,000 price of the new car. I said I got to go think about it.

What would any of you guys hope to get here. I guess a lot of it depends on
A. How that Customer Cash back treats the dealer.
B. Getting them to give me 8-10K for my Trade.

 

[cytech]

27500 is the sticker price? If so then you would be getting ripped off. What is the vehicle make model year that you are trying to get?

A good rule of thumb is to not bring up a trade in till you have the price settled on.

 

[HandSanitizer]

27500 is the sticker price? If so then you would be getting ripped off. What is the vehicle make model year that you are trying to get?

A good rule of thumb is to not bring up a trade in till you have the price settled on.

I have been holding out on the model because its a 2008 Dodge Grand Caravan and Didn't wanted get pasted for it

The price that shows up on the window is 27,500. Not how the rebate works for the dealer, but its 4,000 total.

 

[cytech]

Edmunds.com - 2008 Dodge Grand Caravan Car Pricing Guide

there are $4500 in rebates on the van but they both expire tomorrow.

Dodge dealer holdback is 3%

So depending on options that come with the van invoice is probably about $2400 below the sticker price.

Making the one you are looking at 25,100 - 4500 in rebates = 20,600 and you might get some of the holdback too probably not. Then after you get them to agree to the 20,600 price then negotiate the price for your trade

Edit:
Both rebates are customer cash, you can most likely tell the dealer to keep them and take price off of the vehicle. You can't combine $2000 worth of the rebates with their low interest financing.

Edit 2: I thought today was the first of the month rebates expire on the 2nd

 

[dmclone]

They'll have just ads good rebates or better if you wait a week. Dodge is hurting and there are a lot of 2008's on the lots with 2009's coming in. Nothing wrong with the Dodge minvan besides bad resale value which you should be able to make up on with a big discount off the sticker.

Here is how I would negotiate.

Tell Dealer #1 that you want an out-the-door price. None of these other things really matter because they can just lower or raise the value of your trade in to make the difference. What you need to know is the bottom line.

Now go to dealer #2(as long as it's not Stew Hansen) and tell them that dealer #1 is offering you an OTD price of $$$$. It would hurt to lie a little hear. Don't feel guilty because they will be lying to you when they give you "the best price available". So if Delaer #1 said your OTD price would be 9,500. Tell Dealer #2 that they offered it to you for 8,500 and if they can beat it by $1,000 ($7,500). You'll make the deal today. They're not going to offer the $7,500 but there is a good chance you'll get a lot closer than what you got from dealer #1.

If you didn't get the deal you wanted go back to dealer #1 and tell them what dealer #2 is offering and tell them if they'll beat it by $500 you buy from them because you like them so much.

It's all just a game but don't lose sleep or fight over a few hundred dollars.

 

[dmclone]

Just to give you an idea of what you should be able to get.

Here is a 2008 Caravan with a sticker of $29,610 and after all discounts it goes for $24,479

CarMax Car Detail

 

[brianhos]

Wish all this stuff worked for me. Sucks buying imports because there is only 1 dealer in town.

 

[dmclone]

You don't have to stay in town to buy a car. I've bought a Lexus in KC and a Honda Civic in Overland Park. The Lexus was certified and Betts took care of everything even though I didn't buy it from them. Each time I got a deal set before I made the trip and then made a weekend of it.

It's been a few years since I did this so maybe the local dealers are more competitive now.

 

[cycopath25]

[ame=http://www.youtube.com/watch?v=VOYGRCOPBTM]YouTube - FreeCreditReport.com Commercial - New Car[/ame]

 

[HandSanitizer]

Just to give you an idea of what you should be able to get.

Here is a 2008 Caravan with a sticker of $29,610 and after all discounts it goes for $24,479

CarMax Car Detail

So basically what I have learned here is if there is a factory rebate you negotiate the price of the car after the rebate. Then you work on the trade in with a monthly payment number in hand.
You also do your homework on what others are paying.
this helps a lot. Thanks