PUrchasing strategy

[CPA]

Have you ever gone to look at a new/used car, got their "lowest price", then later submit an internet quote for the same car? If you have, have you had a different price quote? Was it worth the effort/time?

 

[MiataNC]

What is your time and energy/effort worth?

Saving $200-500 dollars grinding a dealer for hours/days may be worth it you or a complete waste of your time. You decide. At the end of the day you have to be happy with the deal you make. No matter how good a deal you make, someone will come along and say they did better whether it is true or not.

 

[DesiPower]

I did, I looked up the internet price, went to the dealership, they laughed at me and shooed me away. I called up the internet dept, told him this is what Zag is quoting, its base model + 3 minor additions. He immediately agreed, I wondered if I could go lower, but after the humiliating in-person experience I was afraid. I bought it from the online office of the same dealership, the actual office was like quarter mile away. The difference was huge, around $2000. for a ~26k car. It was a Toyota Camry Hybrid back in 2007, right when fuel prices were going up.

May I suggest looking up on overstock, even truecar has the similar prices.

 

[SearchMaster]

FWIW, Overstock is Zag.

 

[SSSnail]

Ask for bids from internet department from several dealers, take your pick.

 

[manimal]

Nowadays I try to hammer a dealer on price over the phone before trades or any other details like financing are mentioned. If your buying new dont forget to try neighboring cities.

I have driven up to Kokomo and Anderson indiana to buy my Sienna and our old Avalon because those towns are sh@tholes and were begging for business.

Sometimes you get lucky and find a dealer begging for a sale who goes deeper than they should.


Go with the law of averages. More people you hammer to easier it is to nail them

 

[DesiPower]

@SearchMaster - yes I know, but OP probably will not have access to the site that I had to so o suggested Overstock as they use ZAG too.

manimal's suggestion is good, I remember a friend saving $2000 on FX45 by doing that.

 

[vi edit]

Truecar.com

Done deal unless you have a trade in.

 

[CPA]

Truecar.com

Done deal unless you have a trade in.

I do have a trade-in.

 

[DesiPower]

I do have a trade-in.

Why dont you try to sell it yourself, chances are, selling yourself and buying on the internet with no trade-in will save you money. It will cost time but save money... the good old balance...

 

[BrunoPuntzJones]

I don't even bother with the phone. Just straight up emails. If they aren't willing to email me a price or contract, their spoken word is worthless.

 

[Eos]

Are these over the phone or e-mail price quotes something you can rely on to be valid when you arrive with cashier's check in hand?

I like the idea of this as well.

 

[MadScientist]

Make sure to ask if the email quote is the OTD (out the door) price.

Of course I expect to pay state sales tax and and a reasonable doc fee (question anything over $100.).

 

[anotherblusi]

I generally go online first to get quotes. Then takes these quotes down to different dealerships, and try and get them to go lower...

 

[desy]

Guy i know sent faxes out, said this the truck I want at this price you can give me more truck than this but I won't be paying more
He got a nice truck

 

[EagleKeeper]

Ask for bids from internet department from several dealers, take your pick.

Tried that back in '08 in the San Jose area.

Prices came back from 4 dealers within $200 of each other.

Then the wife changed her mind on what she wanted :\

 

[Cuda1447]

What are some tactics for negotiating price on a specific vehicle and a used one at that? It seems to be a bit trickier because the car I am looking at there are only a handful around, so I don't have a lot of options. At the same time though, they don't sell extremely well and often times sit on lots for 30 days plus.

 

[EagleKeeper]

What are some tactics for negotiating price on a specific vehicle and a used one at that? It seems to be a bit trickier because the car I am looking at there are only a handful around, so I don't have a lot of options. At the same time though, they don't sell extremely well and often times sit on lots for 30 days plus.

Offer X $$ over their purchase price or the Black Book value

 

[Cuda1447]

Offer X $$ over their purchase price or the Black Book value

How do I know their purchase price.

 

[EagleKeeper]

How do I know their purchase price.

Have them show you the purchase invoice.
Let them know up front that you are willing to allow a certain profit, the $XX.

If they refuse, walk away.

Now days, most dealers are trying to add on $400-$600 worth of "overhead/internal profit" on the sales sticker.

That indicates that that is what they feel they should have/need on a sale at invoice cost.

 

[Cuda1447]

Have them show you the purchase invoice.
Let them know up front that you are willing to allow a certain profit, the $XX.

If they refuse, walk away.

Now days, most dealers are trying to add on $400-$600 worth of "overhead/internal profit" on the sales sticker.

That indicates that that is what they feel they should have/need on a sale at invoice cost.

Wow, would they be willing to do this? That's surprising to me.

 

[EagleKeeper]

Wow, would they be willing to do this? That's surprising to me.

For a used vehicle:
If they honestly are willing to sell the vehicle with a set small profit, they will.

The dealership is usually financing the cars anyhow. Everyday it sits on the lot is one that they are paying money on.

Let us assume that you offered $O(ffer) for the vehicle which includes $P(rofit) at the moment.

They need to balance the estimated chance of selling the vehicle within # days costing them $C(harges). doing so, will generate them a profit of $G(reed) after paying the extra $C.

That sale would be $G = $Sale - $Charges - $Initial

If you are able to make $P($O - $I) look close enough to $G, you should get the sale. Be willing to walk out while leaving them your number in case they change their mind. The longer the vehicle sits on their lot; they more they will be willing to bend.

If they balk at showing the invoice and you desire the vehicle; ask to see the black book listing. (not the blue book) every used vehicle dealer will have one - they are updated every month based on auction sales.

That will have the wholesale cost of that vehicle(by year, make, model) in your area based on 3-4 levels of conditions. Then you have add ons to increase value in each of the columns

For a new vehicle;
The invoice from the factory is available from multiple sites if they balk. Ignore the listing price on the window. Certain costs are fixed from the factory; vehicle and shipping - that is the basis for any dealer and is pretty much the same no matter what they say.

Then there are incentives that the factory provides to the dealer to help cover costs or as a reward. Most of those are also able to be determined. These generate profit for the dealer and help cover their overhead.

Like the used vehicle, they are paying charges for every day the vehicle sits on the lot; they make their money by turnover; take your money with a small profit and get another vehicle ready to be sold to another sucker that will not be so tight.

 

[Cuda1447]

Thanks for the detailed response, Eaglekeeper. I'm in the process of negotiating via Email right now (the dealership is two hours away). So far they haven't wanted to budge at all from their listed price, but I'll keep at it.

 

[JeffreyLebowski]

Thanks for the detailed response, Eaglekeeper. I'm in the process of negotiating via Email right now (the dealership is two hours away). So far they haven't wanted to budge at all from their listed price, but I'll keep at it.

Might help if you tell us what care you are looking at and what price they are sticking at.
I just bought a new truck last week and I hammered them pretty good on it, but a couple in the cubicle next to me where dead set on getting a 2012 fully decked out Ford Explorer for $30k. It's just not reasonable for the dealer to sell at a loss.

 

[Cuda1447]

Nissan 370z, 2009. Touring model with sport package. They have had it on the lot for ~ 30 days and have just dropped the price to 26,950. 17,000 miles on the car.

To be honest, it's a good price. And I'd certainly buy it at that price. But I have been burned on cars before and do not wish to be taken advantage of again. If that is what they list it for, certainly they would be willing to sell it for less. And since they have had it on the lot for so long, I feel that I have the leverage in the negotiations.