New Corolla for $12079

[KeyzerSoze]

Can't believe you would go thru that trouble for a Corolla. *Sigh* That car is a POS!

 

[atomicdude]

wow, this thread has spawned debate over the ethics of cooking
up new ads, dealer overheads, and lame vehicles like corollas.

but no one has answered my question, even if you decide to the
fradulent thing, what keeps the salesperson or manager from
checking up on your ad? dude, they could even call carsdirect.com.
i guess the answer is keep trying, or make stuff up like that
was the price yesterday...

still, this idea of baking ads for the sake of PMing cause the
dealer's a crook make things no better or justifiable. i'm
wondering if you can get caught for doing this? probably not,
but maybe?

 

[vaylon]

Hey guys, welcome to the world of car sales. And no the car salesman is not your enemy, but he is a salesman. And he will make money on you. Its like anything else out there, the more informed you are on a subject you are the better off you are at getting what you want, doesnt weither or not its buying a car or talking religion or politics. It pays to walk up to the line with as much ammo as you can get. But the internet does make the hole thing easier. It makes life easier

 

[whiterice33]

what a deal, i couldn't resist picking one up on my way home

 

[vaylon]

Damn that last post just made me a full fledge member. Hallaluya!! took long enough! So now that I am a full fledge member I have to change my morals, OK. Shame on you yymatt!
lol
the truth is if this trick works for you, then it would have worked without it! it just saved you a little bit of negotiating.
the whole process of buying a car is a learning process, learn from it.
If any of you young people want a real education here's two lessons.
#1- before you go to college - take a job as a car salesman- it will teach you things about people you never dreamed. Something that college lacks.

#2- when you get to college , try to find a dorm room with a jew and an arab as roomates.We were like the three musketeers! irish, jew and arab. We were the best of friends and we taught each other just about as much as about the real world as college ever thought about.
jUST RAMBLIN!!!! gOD i FEEL GOOD

 

[Cyberian]

hagbag,
dug,
vaylon

Thanks much for some thoughtful and informed posts.
Some of us appreciate your time.

Doesn't buying a new car end up just like buying a monitor or HDD?
You look around and find the best deal at the time and do it!

 

[Celstar]

If there's one thing that online car dealerships have done, it's making the market fair. All these years, car dealerships have price gouged people because they didn't know the true value of a car. Now they do, and they have no choice but to offer a competitive price.

My sister was looking to buy a car, and she shopped online for the prices. Then she went down to the local car dealer and asked if they can match the price online. And they said, yes, and they even threw in free floor mats. How is this dishonest?

 

[hkchan]

Celstar, the dishonest part that's being discussed here is making up numbers that are supposed to have come from Carpoint/Carsdirect, etc, in order to get a local dealer to match or beat the deal.

 

[vinnyracer]

I know corolla suck, but I seen this old corolla where it had over 300,000 miles and still going.

 

[csc2]

Ok everyone listen up.

Even though yymatt "thought" he was being dishonest he actually wasn't, and being that the dealer agreed quickly he probably paid more than he should have.

Buying a car is not like buying a video card. And the dealer does not have a price match guarantee like Staples. Here's how you get the best price on a car.

Let's take the Lincoln Continental as an example. The sticker price (MSRP) is $39,560. But the Dealer cost is $36,574. So you would think if the dealer shows you his invoice and offers to sell you this car for the price he paid you'd be getting a steal right? Wrong.

There is a $2500 factory to consumer rebate on this car which can be applied to the down payment.

Next there is a factory to dealer rebate on this car for
another $2500! This rebate goes straight to the dealer so he certainly isn't going to mention it to you if you don't know about it already!

But there's still more. There is also something called Dealer holdback. This is something that is refunded back to the dealership on a quarterly basis and is quite substantial. On Lincolns it is currently 2% of the Total MSRP + an additional 2.5% rebate of Total Invoice to Certified Dealers. That's another $1600+!

So basically if the dealer sells you this car for his supposed sticker' cost' he is making over $6,600 profit!

Here's the right way to buy a car.

First go to www.edmunds.com or Kelly's Blue Book and look up the dealer cost of the car you are interested in. Then look up all factory to consumer and factory to dealer incentives. Finally look up dealer holdback. You usually can't use this to bargain with but when it is substantial like a Lincoln you can use it for some wiggle room.

Secondly decide what car you want BEFORE you go to buy. If a dealer has to work to sell you a car he is going to want more money than if he thinks he is going to make a quick sale with a small profit but with no work. (Even better towards the end of the month, it helps towards their quotas.)

Next bring all this information printed out with you. They already know it but if they see you know it as well they won't argue the point.

Finally taking the Lincoln Continental as the example you have:

$36,574 Dealer cost
-$5000 rebates
-$1600 dealer holdback

As I said it's tough to get them to wiggle on the holdback but with one that big you should have no problem walking out with that car for $32,000.

That is a huge savings over the $40,000 sticker price!

Obviously with something as cheap as a corolla the difference isn't as great but the point is the same. Always bargain up from dealer cost, never down from MSRP.

That's about it. Like I said it doesn't matter what price you make up and print out, as long as you know the dealers true cost you can get a good deal.

Flagg

 

[tm37]

I am amazed at how low people think of sales people. Do your homework Know the invoice price check around if there are any dealer incentives, and go shopp around! The saleman is there to pout you in a car, plain and simple the dealer kick backs discussed above are typically based on 1. # of units and 2. CSI- customer satisfaction Index. Car dealers don't want you to leave fealling ripped off. I will also say that having sold cars 1. customers who felt they got tottally screwed I made no money on and 2. customers who thought they got a good deal typically paid more.

Check with your bank credit union on rate and get a payout sheet that tells you your payment info (i.e. interest per month payoff at each month) Also It is OK to trade in Know the blue book value of your tradein and ask yourself what you honestly expect to recieve for your vehicle, and what you would expect to recieve when you sell it to a private buyer, also remember that some states require the vhehicle to pass smog, In California this burden falls on the SELLER if the car fails smog you are resopnisible to make any nessisary repairs.

The most Important thing to remember when buying a car, new or used, is NEVER, NEVER, NEVER negotiate payment always negotiate price check to make sure they don't add any fees into the contract. ASK questions and look over everything very carefuly. Federal requires that the purchase contract have everything disclosed, I.E. warrenty and the like, if you are unsure get someone who you trust to go to look over the contract. Get every thing in writing. Be civil and don't try to "show up" your salesman most dealerships give huge incentives for units sold and CSI.

Remember Auto salesman are in the bussiness on average less than 2 years, and work 50-60 hours a week for 25K-30K a year. It is a really crappy job and if you are nice they can and will help you. If you feel they are trying to rip you off----LEAVE.

Buying a car can be quick and painless if you do your homework, check the internet sites and check for the dealship's customer satisfaction index. If they are treating everyone nice chances are when you walk with your info you will be treated with respect and dignity. Be Strong and Firm and don't EXPECT A HUGE DISCOUNT. remember the fair sale price is what you are willing to pay and no a penny more! If you don't like the price leave and go somewhere else.

Sorry to ramble but I really dilike people saying All Car Salesmen are Scam artists, It like saying All internet users are pimply faced GEEKS!

just my .02

 

[csc2]

solesen,

Hey you work for Edmunds? They are great! Don't worry about self promotion, your site gives the most thorough and up to date advice out there! Kind of makes you wonder why Consumer Reports still keeps charging money for it when it's free all over the net now.

There, free promotion for you from a non-employee!

Flagg

 

[hkchan]

<< Here's the right way to buy a car.

First go to www.edmunds.com or Kelly's Blue Book and look up the dealer cost of the car you are interested in. Then look up all factory to consumer and factory to dealer incentives. Finally look up dealer holdback. >>


Unfortunately, the rebates are not always updated quickly and the dealer incentives are even worse.

 

[drac747]

Carefully and slowly. Do it wrong and the digits get misaligned permanantly and then everyone can tell its been done. Also, do it at the wrong time and it'll show up on the service records of a milage mismatch and they'll cuff you

 

[spec411]

the difference btw buying a car and a hot deal on stuff online is HUGE..often times we get stuff BELOW THE COMPANY's COST after rebates, pricematch, coupons, etc...they figure most of their business is at full price, so they can allow these &quot;losses&quot;...

a car dealer will rarely take a loss, unless for one of the reasons mentioned earlier (gotta get it off the lot, etc.)...they may make a SMALL profit, but rarely do they sell at a loss...thats why we get Scanners and for free after rebate, but not cars for free after rebate...

Also, when cars are &quot;discontinued&quot;, they drop a little in price...when electronics are discontinued, they sell for about 75% or more off! Ever hear of the ugly 1999 models noone wanted being cleared out at the local Honda dealer for 75% off??

 

[xDanielx]

Anyone who ever pays sticker price is a dumbAS$. Car dealers make lots of $$$ off stupid people, so its smart to go to several dealers and see what they will give you. I have watched my parents and they have walked away with cars tones cheaper than sticker price. And dont tell dealers you went here.. they are in cahootz too ya know. Dont just go waste an extra few thousand (unless you are rich, then go right ahead). Infact, pay MSRP... so when I go to the dealer he will be more willing to give me a big discount. Some people just dont know how to shop.

 

[GeezerBoy]

http://www.edmunds.com/edweb/editorial/confessions/index.html

Confessions of a Car Salesman

-- GeezerBoy

 

[JasonG]

I wasn't too impressed with carsdirect.com. I looked up a few cars I might be interested in and on one the price listed was a only $10 less then MSRP.

I don't call that a decent deal.

I believe that it's way too complicated buying a car. If you want an undesirable car that doesn't sell well then you're in the driver's seat. But if you want a more desirable car, it's alot more difficult to negotiate.

I've only had one good experience when I bought a Nissan at a dealer that sold for a flat $200 over &quot;invoice&quot;. I felt that was fair for both the dealer and for me.

The other two experiences have always left a somewhat bitter taste.

I think many people have the right idea though. Figure out how much you're willing to pay and go in there ready to just walk away, if necessary. If you're not prepared to walk away, they have you in their pocket.

Jason

 

[hagbag]

csc2:

You are pretty much right with your scenario about a Lincoln Continental.

The rub comes when the same method is applied to a hotter selling model such as a Lincoln Navigator. List~ $53,000.00 - raw tissue ~ $46,000.00 (raw tissue= invoice minus holdback minus floor plan assistance) Good luck trying to get more than $1,000 to $1500.00 off MSRP. Many dealers will sell a vehicle such as a Navigator above MSRP. Remember the S in MSRP means suggested.

There is nothing new under the sun. The basic laws of economics still apply.Supply and demand is what determines the price of anything.

As mentioned in earlier posts I have been selling cars for longer than I want to think about. I view an educated customer as a potential long term customer. Someone that has taken the time and effort to educate themselves will appreciate the value of what I am offering to them. Remember that the lowest price is not always the best price. An automobile is not the same as the latest CPU or HDD. Odds are that the new car you buy today you will still have five or six years from now.

I viewed the internet with fear and hatred when it seemed that every other customer that walked into my showroom Knew more about my cars and prices than I did.

Then I realized that the internet is the greatest thing since sliced bread. The internet has made my job easier and my income has gone up .An educated customer is a great long term customer. It has eliminated a lot of the fear and distrust on the part of the customer. They no longer are wondering if they got a good deal- now they know!

I make my living selling cars. I like what I do. I do it honestly and the bulk of my income is from repeat or referral customers. No one survives in any retail sales position by scewing thier customers. Am i going to ask you for a profit? Yes I am!

Do you have a right to buy a car from me for no profit? No you do not!

As outlined above an educated customer is agreat thing. I have no problem selling a Taurus and having to go into the holdback to move the unit. I do pity the fools that believe that they have the right to buy a car i.e. navigator for what I paid for it. What a dealer pays for a car is immaterial,what you have to reach into your pocket to buy it is what counts.

 

[hagbag]

csc2:

BTW holdback is calculated as follows: MSRP minus shipping times 3.25% for a Lincoln Premier Expierience Certified dealer. A non LPE dealer gets 2%.

 

[hagbag]

Daniel:

You are right, it does pay to shop around and get a feel for the market.

You are dead wrong when you say that dealers are in cahoots with each other. Nothing could be further from the truth. Dealers are locked in mortal combat with each other. Always have been and always will be.

 

[sharkbitz]

Car salesmen are not that bad, considering they are just trying to make a commision/living. On the other hand, I absolutely despise tow truck drivers and traffic cops.

Ah well. I've only had good experiences buying cars. I got my 3000gt (used) for $8k a year ago. I'll take that over a new corolla anyday.

my 2 cents.

 

[Garet Jax]

csc2,

How did you find out about the factory to dealer and factory to consumer rebates? I checked kbb and edmunds, but couldn't find it. Thanks.

 

[PandaBear]

Dude you guys should really take geographical location into account too....

Some car sell for more in certain area, because of the higher storage/transit cost. The only good indication is to get as many dealer to write down their offered price as possible and get the most affordable one in your area.

Some area (like sf bay area) has a higher living cost and they need to have a higher margin to live.