Negotiating New Car Price?

[seraphim]

+1. Exactly what I've done, and would recommend. Though I don't hate working with dealers, it's all a game, and it's fun if you know how to play it well. I've actually helped other family members buy cars, happy to help.

- Never, never, never let them know they have exactly what you want. I give a range of colors and options I'll accept, you don't want to say gas to X color with Y options exactly - if they have it, they know they've got you cornered.
- And if they tell you, 'come back after you've been to all the others, and we'll match/beat the other dealers price,' - I always tell them 'I won't be back, so you might want to give me your best price now' and walk out if they don't. They know they can call you if they want your sale. And I won't take an offer that just matches another dealer, doesn't seem fair to me, I'd go back to the first dealer that made the best offer. YMMV
- Timing can be a factor. End of a month, end of a quarter, especially in slow months (winter where I am) can yield lower prices. Late March can be ideal where I am...

I don't hate dealers either; they are trying to make a living and make the best profit margin they can. Just like FA's, except FA's siphon money off you for life. Car dealers just do it for one sale - unless you buy into extended service contracts lol

 

[brett]

Do it by email. No body language, no emotion. It becomes a tender rather than a negotiation.

Plus the seller knows that you can pull the plug on the negotiation simply by ceasing contact.

Do it at the end of the month,or preferably the end of a fiscal period.

 

[Midpack]

W

Do it by email. No body language, no emotion. It becomes a tender rather than a negotiation.

Plus the seller knows that you can pull the plug on the negotiation simply by ceasing contact.

Do it at the end of the month,or preferably the end of a fiscal period.

While I agree with starting online, I've always used the best online offer as a starting point, and gotten a better deal by going to a few showrooms to find out who would beat it. I've gotten an even lower price all but once...

 

[Car-Guy]

I use KBB, Edmunds and a few others to arm myself with info before I go to a dealer. Both with the new car price and my for my trade. Usually they are pretty close, if you compare the exact car/options/etc and are honest about the condition of your trade in.

Unless you are buying an exotic, never consider paying anything near the window sticker. (duh) Extended warranties can be had at a tremendous discount from the initial asking price and bundled in with the purchase. Also, things like free loaner car contracts can be added in the purchase for little or nothing if you just make it part of the deal.

When you do make or counter their initial offer, always start as low (or lower) as you think you can. (You may be surprised) Easy to go up, hard to go down.

 

[Midpack]

Unless you are buying an exotic, never consider paying anything near the window sticker. (duh) Extended warranties can be had at a tremendous discount from the initial asking price and bundled in with the purchase. Also, things like free loaner car contracts can be added in the purchase for little or nothing if you just make it part of the deal.

When you do make or counter their initial offer, always start as low (or lower) as you think you can. (You may be surprised) Easy to go up, hard to go down.

Probably generally correct, but I believe the overriding determinant is purely excess demand. There are usually more buyers than inventory for true exotics (Ferrari, McLaren, etc. - not simply expensive cars**), but any car with a waiting list probably can't be bought at a (big) discount.

Occasionally some relatively inexpensive cars can go for full MSRP or even a markup. I think that was the case for the 240Z early on, and I know it was for the Audi TT at first. So there are very few cars that can't be bought at some discount, how much depends primarily on demand relative to inventory. If you find your desired car abundant in a dealers inventory, you'd be crazy to pay anywhere near MSRP. [You might be surprised how much the difference in discount can be from one dealer to another on any given day due to inventory, and performance vs sales targets]

** there are often huge $ discounts on even the top model Mercedes, BMW, Porsche, Bentley, etc.

 

[Newventurer]

It may have been alluded to in previous posts and likely varies by State, but when you trade in your old vehicle to the dealer, they adjust the new car price by the price they are giving you on the trade-in and this net amount is the amount that you pay sales tax on at the DMV (or in some states, at the dealer). My State does allow you to process paperwork proving a sale to a 3rd party to reduce the sales tax due. Likely many people aren't aware of this and end up paying more sales tax than they have to.

 

[RetiredGypsy]

I'm noticing a lot of numbers games. Suddenly they're willing to take $$$ off an MSRP that they've made up and isn't comparable at all the the manufacturer's site, then add fees back to magically come back to above MSRP.

Tricksy hobitses.

 

[travelover]

I'm noticing a lot of numbers games. Suddenly they're willing to take $$$ off an MSRP that they've made up and isn't comparable at all the the manufacturer's site, then add fees back to magically come back to above MSRP.

Tricksy hobitses.

I pay zero attention to MSRP or "invoice " price. Just give me an out the door price. That cuts to the chase.

 

[pb4uski]

It may have been alluded to in previous posts and likely varies by State, but when you trade in your old vehicle to the dealer, they adjust the new car price by the price they are giving you on the trade-in and this net amount is the amount that you pay sales tax on at the DMV (or in some states, at the dealer). My State does allow you to process paperwork proving a sale to a 3rd party to reduce the sales tax due. Likely many people aren't aware of this and end up paying more sales tax than they have to.

I did this when we bought our Outback. It was on order so I put my Legacy GT up for sale on Craigslist and sold it.. luckily my Mom was in FL so we just used her car for a few weeks until the Outback arrived. When we went to pick up the Outback I provided documentation on the sale of the Legacy and paid sales tax only on the net purchase price.

In our state, even if you pay the tax in full when you buy new car, if you then later sell a car within a certain time frame you can get a refund to put you in the same spot that you would have been if you sold it before you bought the new car.

 

[travelover]

..........



In our state, even if you pay the tax in full when you buy new car, if you then later sell a car within a certain time frame you can get a refund to put you in the same spot that you would have been if you sold it before you bought the new car.

Interesting......I've not heard of this. Tried to find if this option is available in Michigan, but it appears that only a direct trade yields a discount on the taxes paid on the new car.