by hoser 20 Replies latest jw friends
a person doesn't know if he did a good deal until perhaps many years down the road. Service is huge. my thinking is that if I feel that the sticker price is a fair representation of the vehicles value it is worth it in the long run just to pay the price and it will will repay you many times over in the long term.
As for paying cash being cheaper. Sometimes it is , sometimes it isn't. It depends on the inflation rate and the opportunity cost of your money.
In the United States, over the last several years (decades even), finance rates have been pretty pretty low for anyone with okay credit.
I have a used car with a 2.9% rate if I remember correctly and a car that was new in 2011 with a 1.9% rate. There was no need to negotiate those rates. It's all a game with trade-ins, extras. I bought a couple of Hondas brand new and they didn't deal down from the sticker price, so I had to deal "up." I made them give more on the trade-in, had them throw in some extra features at no cost.
Here's one I forgot to do. Today's keys are complicated. Always always always insist on a third key thrown in. It could cost up to $200. I got them to throw in the deluxe cargo shelf in the back of an SUV and a remote starter along with the higher-end rubber matts throughout. It was tougher to get extras with a 4-cylinder economy car, but I got the remote starter and some interior features and had to buy my own rubber matts but the stock ones were in there.
You really do have to counter some offer and just walk out if they say no. I have always walked out but never made it to the door before they changed their minds. I never dicker back and forth. I counter once with a fair offer, already knowing what experts from the internet say I should pay. They MUST come all the way to my offer- not halfway. They always have.
Well JeffT your right the invoice is not the actual price the dealer pays, they make money and get discounts from the manufature based on how many new cars they sell. Good luck getting a new car for less then Invoice though, because the people who work their will not make a dime and will not be to motivated to help you.
I've never been in a position where I HAD to buy a car. I have always bought a new/different car because I wanted it. I've seldom financed one and if I did I never used their finance department -- I have a relationship with my bank for such things. If I see a vehicle on the lot that I fancy, I might look at it and look again. If it sits there for a week or two, it's costing the dealer money as his inventory is usually financed. Esp if it's of a brand that is not the same as the dealership (a Ford at a Chevy dealer).
The last vehicle I bought I offered them 72% of their asking price. Of course they turned it down and came back with a higher offer. I asked, "WTF didn't you understand about $xx,xxx ? Let's quit wasting our time. I don't NEED this vehicle. It can sit on your lot another month." And I started to walk out. He called me back and said, "Put your money where your mouth is.....write the check." SOLD
I recently purchased a new vehicle; a model that I've wanted for several years but could never afford until recently. I finally decided to buy used (2 to 3 years old as that seems to be the sweet spot with depreciation) and did all sorts of research about negotiation. I went ahead and got outside financing pre-approved so I'd have a baseline rate the dealership would have to compete with.
While researching, I found that you can sometimes get a good deal on 'leftovers'. For example in the US, the 2015 models will be out in the next few months. There are still a few brand new 2013 models sitting on the lots. I looked and found only one left in my area.
So I picked out several used 2013 models with less than 10k miles on the odometer, went down to the dealership, and asked them to convince me why I should buy their nearly two year old "new" car, when I could pick up the same year model slightly used for many thousands less.
I had already consigned myself to buying used, and already had the financing, so it wasn't difficult to get up and start walking out when they initially wouldn't come down in price. But they were bluffing, and they needed to move the car. They knew I wasn't bluffing. I was ready to go buy one of the used cars I had picked out. So they came down in price, and I got the car below invoice, and almost 8k below sticker price (on a car with no incentives that often retails several thousand above MSRP). That beautiful new car turns into a lead weight if it sits on their lot long enough.
If you do your research and have a good poker face, you can find a good deal on a car. I've been royally screwed in the past, largely because I didn't understand how car buying works and didn't take the time to research. (Hint: When the salesmen give each other a high five on your way back from the finance office, you've been bent over the fence.) Now I know (a little) better.
Sorry.
LL
There is always room built into the price for negotiation. When I buy new cars I buy the demo model, as it usually has all the high mark up inclusions, and is several thousand off the new price with just a few thousand kms on it.
It's all horse trading ...
There are ways to determine what the dealer paid for it and what is the price they are likely to accept. I have never paid sticker price, $200 over what they pay for it. You have to do your homework.
http://www.carsdirect.com/car-pricing/how-to-buy-a-new-car-below-the-invoice-price
http://consumerreports.org/cro/2012/12/the-consumer-reports-bottom-line-price/index.htm
Q: Who negotiates a lower price when buying a new vehicle?
A: People that work hard for their money and want to keep as much of it as is reasonable.
