New car Negotiating

[GaryKD]

Hi Clifftall,
It is not difficult to get the lowest price. The lowest price may or may not be what you want to pay. If you are financing, get that arranged first.
1. find the vehicle you want
2. take 80% of the MSRP (you mentioned you'd be happy with 85%)
3. have the sales person write the sales contract for that amount
4. the dealer has XX hours to accept the contract or the deal and your check are void should be written in the contract
5. provide the appropriate deposit
6. if the dealer does not accept, then walk

The only way to get the best price is to make the offer via a signed sales contract.

[Superslif]

The only way to get the best price is to make the offer via a signed sales contract.

Good point...

I had initial offers written haphazardly on paper. I had them re-write them on a dealerships official form.

[PyrateSilly]

Best advice "Be willing to walk away"

Figure out the price you will be happy paying and do NOT accept anything else. Walk away!!

[Oldme]

After researching the web (MSN auto and NADA) for prices, I always call my bank.

I ask the bank the loan value of what I am buying as well as my trade-in. I also ask wholesale value of both.

I will not take less than wholesale for mine if trading, nor will I pay much above loan value for the new one.

So far we have gotten what we wanted.

Never buy anything based on what they say your monthly payment will be. I had a co-worker that use to do that and he overpaid every-time.

I never use their financing unless there is some special low % rate that beats my bank, after the negotiated price.

Good luck and remember Buyer Beware.

[CLIFFTALL]

Thanks everyone. I'm looking at a 2014 Lexus RX 350. The main issue I'm having is that all the dealers order them with three different packages. They won't let you pick and choose options outside of those packages. #1 is basic ( no options ) #2 is half the options and #3 is ALL the options. This forces you to buy a few thousand $ worth of stuff you don't want / need or will ever use. I was offered 6% off list and I walked. I'll wait and see how hungry they are ( ) but I got the impression that they weren't . The 14's have only been out a short time. I've contacted other dealers and we'll see what they offer. I'd rather have dental surgery than deal with some of these guys. I've bought three cars from this dealer and they act like I'm a tire kicker off the street.

[Route 66]

The discount can range zero to who knows and some popular cars are sold for over MSRP.

There's just no uniform discount one can expect.

[DonavonP]

Please post pictures of your Wrangler when you get it.

[CLIFFTALL]

Originally Posted by DonavonP

Please post pictures of your Wrangler when you get it.

If you're talking to me . There ain't no Wrangler in my future .

[jzick]

I just bought a new car 45 days ago (loaded Toyota Camry). I found dealer invoice price (several web sites can give you that info), including all the options. I offered dealer invoice price - he said no and said he could not make any money at that price, then countered near sticker. I told him I did not care about his profit, that was his job, and walked away. He chased me into parking lot. We then negotiated up from my offer (not down from his). Eventually paid about 20% less than MSRP. Whole process took about 45 minutes.

Don't know if this is the right way, but I walked away happy with what I paid, and happy with the car.

[Route 66]

More like this.

[Cat320]

If serious, have no trade, know exactly what you want, and pay cash, here's how to do it:

- Prepare an email listing exactly what you want...year, make, model, color, etc.
- Send individual emails to dealers as far away as you are willing to go to pick up the vehicle.
- Select the lowest bidder, ask for a comfirmation email listing price and specs.
- When above is confirmed, send email or call and thank other dealers for their interest...and ignore them when they want to change their bid or offer you last year's model for $500 less.
- Go pick up the vehicle.

This method is especially easy on models that have limited options once you pick a model...like Honda.

This is how I got my CRV, whole process to part of an afternoon.

[dieselclacker]

If I have a trade in, I pay no attention to the price offered for it. I deal for the difference in price I am willing pay between the trade in and the OTD price of the new vehicle.

[OrngTrillium]

Also have fun when you sit down with the dealer and you get to play the "four corners" worksheet. Look up that and dealer hold backs and incentives. The dealer cost is not quite what it appears. The otd price you are looking at should include the "dealer admin fee" which at some dealers can add another grand or two to the deal. If they won't lessen this fee ask for a comparable discount. In my area some Lexus dealers like to add dealer accessories in lieu of a discount. Know your accessory pricing, some dealer accessories are five times more then you'd pay if buying the accessory direct from the maker of the accessory.

The fun of the "finance guys" add on is one big chance for you to practice saying "no" advise them they're wasting your time don't want the fabric protection for my leather seats etc.

The RX non hybrids are made in my romping grounds. Know several people who work there. I would trust these gents and ladies with the crafting of my vehicle just as I would trust the folks in Alliston with the popular toad CRV. Despite ratings knowing half a dozen gents who stumble about I would avoid 09 plus Rav4 not that its in your radar. In hthe Rx class I'd only consider the MKT. Congrats in advance on your fine automobubble you will be cruising' the roads in style. Entune is VERY nice. The Toyota 3.5 v6 punches above its weight class.

[ahicks]

Originally Posted by Cat320

If serious, have no trade, know exactly what you want, and pay cash, here's how to do it:

- Prepare an email listing exactly what you want...year, make, model, color, etc.
- Send individual emails to dealers as far away as you are willing to go to pick up the vehicle.
- Select the lowest bidder, ask for a comfirmation email listing price and specs.
- When above is confirmed, send email or call and thank other dealers for their interest...and ignore them when they want to change their bid or offer you last year's model for $500 less.
- Go pick up the vehicle.

This method is especially easy on models that have limited options once you pick a model...like Honda.

This is how I got my CRV, whole process to part of an afternoon.

This is very similar to how I do it. After working at a dealership for a few years, you realize what a game this is for them - and how to avoid it. The first step above is key, specifying EXACTLY what you want. Do not waiver!
This immediately deflates the potential for being dragged into one of their best games, which is to confuse you regarding what you're getting, thus the price?

The rest of your process is approached best by thinking of it as simply collecting bids? Pretend it's a case, or a truck load, of toilet paper that you're after! Don't get in a hurry, and collect as many bids as you have the patience to collect (at least 3!). I can tell you now they are not going to like YOUR game, as they are used to playing theirs? They will play though. They're there to move cars! Just be fair. Sit down and tell them what you're doing, that you're collecting bids for THIS SPECIFIC vehicle. Tell them you have a couple bids now, and you would like to know how their bid compares with others. DO NOT tell them whose bids you have, or show them to them. This allows them to match your deal rather than compete for your business. DO NOT allow yourself to get caught up in their game, which is to solicit offers (especially those that come with a deposit!). They're VERY good at that game - and you have little chance of success against them. They've been practicing every day for years? And the "One Price" thing? Just walk away. They would LOVE to have you believe that....

Part of this process will be educating you as to what a fair price for your new vehicle might look like. If you get a price that's VERY appealing after collecting a couple of others, take them up on it. Make SURE that offer has been signed by a person in a position of authority at the dealership, and make sure you're looking at a price that contains ALL of their fees, taxes, etc.!

Oh, another trick. In the thick of negotiations, there is sometimes a pause in conversation. He who breaks that pause....looses.

Last thought, be courteous, but do not be shy of offending them? For your part in this "game", they can best be thought of as an animal waiting in prey for it's next victim/meal? The timid are eaten alive in these places. If you view yourself as "timid", bring a lion with you?

Best of luck!