The art of the deal......Cars
- Thread starter Bobber
- Start date
Ok Tre and Agronomist, I have a follow up question haha.
If the vehicle I'm looking at has an MSRP of $25,500 and the X-Plan price is $21,700 (with the current rebates) do I pull the trigger or could I do better the old fashioned way? I'm more than clueless so any advice/perspective is appreciated.
If the vehicle I'm looking at has an MSRP of $25,500 and the X-Plan price is $21,700 (with the current rebates) do I pull the trigger or could I do better the old fashioned way? I'm more than clueless so any advice/perspective is appreciated.
If the cars were equal and you bought out of state to save $80 then that is a **** move.
The biggest myth is that you get some kind of deal if you have cash. In reality they would rather have you finance or fleace.
I email dealerships and have them fight it out. I'm not afraid to drive for a deal either. I've bought 2 cars in Omaha, 1 in KC, 2 in Ames, and a bunch in DM. Once the number gets down to something I think is fair I don't spend a lot of time trying to get the last $100 out of them. Going in I know what my trade in is worth and I know how much they can sell their car for a profit.
I email dealerships and have them fight it out. I'm not afraid to drive for a deal either. I've bought 2 cars in Omaha, 1 in KC, 2 in Ames, and a bunch in DM. Once the number gets down to something I think is fair I don't spend a lot of time trying to get the last $100 out of them. Going in I know what my trade in is worth and I know how much they can sell their car for a profit.
IMO, It was kind of a **** move on both sides. Creating bad blood over $80 is stupid and could cost your dealership the servicing which is what brings in good money.
I also know that certain cars like the Honda Fit have very little wiggle room compared to something like a 2013 Chevy truck that is about to be redesigned.
If your financing, call your bank and get their lowest interest rate. Sometimes a dealer can beat that depending on the situation. Example, I bought a used Accord at a Honda dealer and got .9% financing, which blew away my 3.5% bank offer. I always tell them Im looking for financing, so they think theres potential to make money on the back end if they take my lowball offer.
I usually dont haggle too hard on pricing. If its within a grand of the price I like, I'll pull the trigger. Then I tell them I'm not interested in ext warranties and to give me their best financing options. Most of the time, unless your buying new, they cant beat the bank, but its worth the effort.
On trade-ins they have an extra hand to play, but I'll lose a little money there if it saves me the hassle of sale by owner.
I usually dont haggle too hard on pricing. If its within a grand of the price I like, I'll pull the trigger. Then I tell them I'm not interested in ext warranties and to give me their best financing options. Most of the time, unless your buying new, they cant beat the bank, but its worth the effort.
On trade-ins they have an extra hand to play, but I'll lose a little money there if it saves me the hassle of sale by owner.
I was just talking to a coworker about this. He has bought two new cars recently. He went it with the invoice price of the car and says "I want this car, I'm willing to pay $100 over invoice price. Do we have a deal?" Both times they initially said "no way we can do that". He said he was going to the next place, started walking out, and both times they ended up giving him the deal.
I asked him why would dealers make that deal...to basically sell a car for the same price they bought it at. 1) Automakers typically rebate 2-3% of the invoice price back to the dealership so they are making money and 2) volume. They want to sell cars.
I asked him why would dealers make that deal...to basically sell a car for the same price they bought it at. 1) Automakers typically rebate 2-3% of the invoice price back to the dealership so they are making money and 2) volume. They want to sell cars.
I've never been in sales, but I agree with you on avoiding the dance. I just bought a used car a couple of months ago. I knew the type of car I wanted and searched about 60 miles from my house online. Found a few dealerships and emailed them telling them I was looking at this type of car with these options, told them there were several in the area and I was going to buy one this weekend. I asked for their best price and when I found one in the price range I was willing to pay I went and bought it. Most of the dealers really knocked the price down. Some did not, but I did not go to those dealers.
Is buying my HDMI cable online for $10 instead of going to my local electronics store and spending $15 a **** move? If so, fine, you're entitled to that opinion. The guy knew where he needed to be. He could have made it happen but chose not to. If it's a **** move on my part, it's just as much a **** move on his part.
Just to clarify, I don't think there was any bad blood created. He didn't want to come down $80 and we were happy to spend less. It's too bad the deal didn't happen, but I don't think anyone was losing sleep over it.
I am looking for a GMC Terrain but haven't seen any prices I like.
Last car we bought was an 07 Mustang in 2008 for my wife. We went local and then then held out over $300. The saleslady said to me "it's only $5 more per month so it shouldn't be a big deal. I then said "If $5 is not a big deal to me imagine how inconsequential it is to your dealership" and then we walked out. About 20 minutes later she called me and said we had a deal. I told her to have the dealer nameplate off the back removed and we'd be in right away to buy it.
I hate buying cars.
Last car we bought was an 07 Mustang in 2008 for my wife. We went local and then then held out over $300. The saleslady said to me "it's only $5 more per month so it shouldn't be a big deal. I then said "If $5 is not a big deal to me imagine how inconsequential it is to your dealership" and then we walked out. About 20 minutes later she called me and said we had a deal. I told her to have the dealer nameplate off the back removed and we'd be in right away to buy it.
I hate buying cars.
Like the 75% of sticker strategy. Also, just bought vehicle couple months ago & a used one for my oldest kid about 6 months ago, & for each instance I had info from KBB, Edmunds, & NADA. Dealers will generally say they go with NADA, but having the info from the others seemed to work out for me. I went with the one that was the most in my favor & rode that horse as much as I could.
Also offered cash - & it seemed to me by doing this combined with having a lot of info & showing I was a well-researched buyer led to fairly quick dealings & not much haggling. However, my final numbers came up to 78% of the sticker so maybe I could have done better?
Anyways - also remember your post a few months ago on getting a new vehicle. We settled on a Mazda CX-9. Wife liked it better than the Traverse. I had liked the Durango, but she thought it was too truck-like & she is the one driving it the most. CX-9 has been great. One negative is the 2nd row is a bench seat & they do not offer the chair-seating. The bench is split so 2 people back there can adjust separately for leg room - one section is bigger than the other (1/3 & 2/3) - fwiw
Good luck. Do not envy you. Vehicle purchasing is not my favorite.
I know it's rare but I actually enjoy the purchasing process. Going in I know the following:
#1 I have all the cards. Nothing can happen unless I say so.
#2 I don't have to buy a car that day. Your power of walking out is your biggest advantage.
#3 There are plenty of other choices when it comes to car dealers
#4 There is a good chance that after I walk out they will call me within a day to accept my offer
#5 If my wife is along for the purchase she also knows how to play the game. She'll say things like "I really like that Toyota" while we're sitting in the Honda dealership. We play a little good cop/bad cop on them. She use to be terrible at the process. She would tell the salesperson that she loved the car
. We've broke that habit.
I know going in that they are going to make money off me and I'm fine with that since it is a business. I just try to have them make as little as possible.
#1 I have all the cards. Nothing can happen unless I say so.
#2 I don't have to buy a car that day. Your power of walking out is your biggest advantage.
#3 There are plenty of other choices when it comes to car dealers
#4 There is a good chance that after I walk out they will call me within a day to accept my offer
#5 If my wife is along for the purchase she also knows how to play the game. She'll say things like "I really like that Toyota" while we're sitting in the Honda dealership. We play a little good cop/bad cop on them. She use to be terrible at the process. She would tell the salesperson that she loved the car
. We've broke that habit.I know going in that they are going to make money off me and I'm fine with that since it is a business. I just try to have them make as little as possible.
Lots of good advice here. I think the biggest for me is shopping when you aren't desperate for a vehicle and remembering you are not buying a rare item (i.e. there are lots of 2007 Chevy Malibu's out there, etc).
Obviously, cash is king and goes a long way. And if you go to a place that is really into "selling," realize the tactics are coming.
I do like the one strategy another listed....get two dealers fighting for your business.
ALWAYS be willing to walk away.
Obviously, cash is king and goes a long way. And if you go to a place that is really into "selling," realize the tactics are coming.
I do like the one strategy another listed....get two dealers fighting for your business.
ALWAYS be willing to walk away.
So now you have 2 numbers with no basis in fact? Nah - the pricing guides the banks use are extremely useful.
