Views on Negotiating for New Vehicle

[street]

So, I have an ordered vehicle that is in the built status and will be shipped and delivered of the week of April 21st to 27th.

I have a certificate for 500$ for a credit towards this vehicle I can use at time of purchase. This a from Farm Bureau Insurance Benefit program they have for being a member and insurance holder.

I also will try to negotiate some on the cost of purchase or have some accessories added into the deal.

This vehicle has been hard to purchase/get because of low build rate and been sought after, so price of them has been in most cases been a lot more than MSRP listing. They asked me yesterday someone has already wanted to buy the vehicle I have special ordered, and it hasn't even left Mexico yet! Lol There are many that have ordered them and still waiting after 15 months from order date.

So, my question is after some history on the question. Should I deal right now on an etched/final purchased price through emails and phone calls. Or should I try to work the deal when I walk in the door to buy the vehicle. The voucher for 500$ I will tell them the next time I talk to the salesperson so not hidden hoops to jump through of the day of.

So, make the deal and final purchase price before or wait Where do I have the most leverage. Any views, angles, tips and suggestions please give me your negotiating skills.

Thanks

 

[VanWinkle]

If there is any leverage for negotiation at all, it would be most likely once the vehicle hits the dealer's lot. I am also trying to buy a vehicle(Highlander Hybrid) that is short supply and very difficult to find. I will take my chances to bargain once I get one to the dealer, but I refuse to pay more than MSRP.

Good luck on your purchase,

VW

 

[street]

Thank you Mr. VanWinkle and the same to you. I dislike dealing with purchasing an outfit. Worse than going to the dentist.

No way I'm paying more than msrp. We are set on that price now, but I will try to negotiate some from msrp. I have the 500$ voucher for starts.

 

[OldShooter]

It's too late. The lowest price they will take (as a courtesy) will be just slightly under what the other guy will pay. Negotiation 101: If you aren't willing to leave the table you're not negotiating, you're begging. That's where you are now.

 

[braumeister]

It seems to depend a lot on the dealer. I just bought a car that is in very short supply in my part of the country. So short that most dealers around here won't even order one and the few that will are asking $3K or more over MSRP.

But it's easily available in some areas, so I looked around and found precisely what I wanted in Maine where they sell a lot of them. Emailed the dealer and they were happy to make a deal over the phone for $500 under MSRP if I could get there and complete the deal within a week.

I had a bunch of airline and hotel points available so I got a plane ticket there and three hotel nights for a total of less than $200, flew up to Maine and drove it home. Happy camper here!

 

[Car-Guy]

I agree with OldShooter, it's too late. Negotiations should have been formalized/finalized when you placed your order. However, if you want to buy some add-ons after it's delivered to the dealer, you can negotiate on those items.

Note, (believe it or not) it's unfortunate but I've seen folks that have special ordered a vehicle only to have someone come in while they are in build status and buy it out from under them. Especially a high demand/long lead time vehicle. If at some point they tell you "it's been cancelled for some reason" you can be pretty sure someone else paid more and got it. Poor business practices, yes. But it happens. Just another reason they call car dealers, "stealerships". Good luck.

As an aside, I recently bought another a high demand/expensive vehicle but I bought it off the lot since I've heard too many horror stories about ordering them.

 

[street]

It's too late. The lowest price they will take (as a courtesy) will be just slightly under what the other guy will pay. Negotiation 101: If you aren't willing to leave the table you're not negotiating, you're begging. That's where you are now.

Well, I'm begging won't hurt to give it an opportunity to see what happens. The worse that can happen is they don't budge.

This will be the second new one I have bought from them in the last three years and will be looking at one or two more new one in the next 3 years. They will hear this and I will see where it leads to from there. I'll know when to fold or not. I haven't had a problem through the years haggling and wheeling and dealing and has paid dividends.

 

[Midpack]

It's too late. The lowest price they will take (as a courtesy) will be just slightly under what the other guy will pay. Negotiation 101: If you aren't willing to leave the table you're not negotiating, you're begging. That's where you are now.

+1, that's been my experience, but I have never factory ordered a car - always bought one from inventory (including another dealer swap) or in transit (waiting list). I would never buy a car without nailing down the exact amount and terms before agreeing to purchase.

 

[monte1022]

So, I have an ordered vehicle that is in the built status and will be shipped and delivered of the week of April 21st to 27th.

Shame on you for not telling us what you ordered!

 

[FiveDriver]

Shame on you for not telling us what you ordered!

I too am curious about what make & model can command that kind of price above MSRP. I don't think you have any negotiation leverage if there are folks lining up to buy the car.

Funny Story --
One year, we were shopping for a mini-van over Thanksgiving weekend. We found a Dodge Caravan that we liked on the lot, and went inside to negotiate the price. Dealership was nearly empty over that holiday......a slow month on the car sales calendar. We made an offer, and the salesman says, "Let me check with my Manager." And he walked around the corner, probably to get a drink.

This tango went on for 3 or 4 different price and options iterations. So much so that my butt-cheek fell asleep in the salesman's chair. I stood up to get some circulation flowing in my leg.

The salesman immediately changed his tune, and accepted our last low-ball offer. He thought we were getting up to leave the building.

 

[Car-Guy]

I too am curious about what make & model can command that kind of price above MSRP. I don't think you have any negotiation leverage if there are folks lining up to buy the car.

I'd like to know too... There are probably several makes/models.

I know the RAM TRX is going for MSRP in most areas of the country. Two years ago they were asking 10k+ over MSRP and they were getting it. Since this is the final year (of a 4 year run) for the TRX and they only made ~4 thousand of them this year, I don't think they are going to bargain too much. The last ones made earlier this year are just hitting the lots.

Even "like new" used ones are being sold at crazy prices of 90 to over 100k.

 

[f35phixer]

I see Street in a VETT !!!!!!!!!!!!!!!!!

Tearing it up !

 

[Montecfo]

If the dealer knows about the $500 certificate before you agree on a price, isn't the dealer likely to harvest that for himself?

Since you do not know his lowest price without it.

 

[aja8888]

I mentioned this in a previous thread: Dealer next neighborhood over to me had advertised several Mavericks (Ford small truck) that were "in stock" and one that just came in as a "special order". The special order was a hybrid and came in with a MSRP of around $29+K.

When I saw and drove the hybrid truck, the sales guy said the person who ordered it would not pay the $5 K add on so they were selling it to anyone who would, which was not me for sure. When I drove it I did not see the small sticker on the windshield indicating a $5 K add on.

All the other "in stock" Mavericks were really in transit and not on the lot, even though they said they were available. Every one was going to be marked for "special Pricing".

Really nice guys there.

 

[Mark1]

It seems odd that you can order a vehicle and yet no one is committed on the price and whose truck it is. I would just let the other person have this truck and order 10 trucks next time. With that many trucks surely you should end up with one of them.

 

[OldShooter]

Well, I'm begging won't hurt to give it an opportunity to see what happens. The worse that can happen is they don't budge. ...

Yup. That's the attitude you have to have. We've all been in the begging chair at one point or another. And ... you don't get what you don't ask for.

This will be the second new one I have bought from them in the last three years and will be looking at one or two more new one in the next 3 years. They will hear this and I will see where it leads to from there. I'll know when to fold or not. I haven't had a problem through the years haggling and wheeling and dealing and has paid dividends.

Yup again. Actually, I am the rare person that looks forward to negotiations. I think it's fun. Good luck!

 

[Midpack]

I mentioned this in a previous thread: Dealer next neighborhood over to me had advertised several Mavericks (Ford small truck) that were "in stock" and one that just came in as a "special order". The special order was a hybrid and came in with a MSRP of around $29+K.

When I saw and drove the hybrid truck, the sales guy said the person who ordered it would not pay the $5 K add on so they were selling it to anyone who would, which was not me for sure. When I drove it I did not see the small sticker on the windshield indicating a $5 K add on.

All the other "in stock" Mavericks were really in transit and not on the lot, even though they said they were available. Every one was going to be marked for "special Pricing".

Really nice guys there.

Dealers have always added markups to models with demand substantially exceeding supply, not new, just more widespread post Covid when the supply chain was way out of kilter. And dealers have always heavily discounted models where supply substantially exceeds demand. Always have and probably always will. Funny people are “surprised” at big markups but not big discounts…

 

[street]

I'm back after a long day in the outdoors and have read through the post. When I ordered the Ford Maverick the MSRP is the price I will be paying. There is no markup above that price. So, I do know what it will cost me the day I walk in, but I plan on trying to get a drop in bed liner thrown into the deal or some cash credit from set price of MSRP.

The thing I don't know if I should try to negotiate beforehand or wait till that day. Sales lady email today and said, no is going to sell the Maverick from out under you the truck is ours when it comes in. They post them on their site for advertising etc.. They have eight in transit and have all been special ordered. So, none they can sell if someone walks in and wants to buy one.

 

[Romer]

A tale of two car purchases I am doing now

Toyota Tacoma 2024- They sell over 250K a year. Demand is much greater than supply. Took me a month to find a truck configure how I want to put a deposit on and it doesn't start build till late May for July delivery. There is no negotiation on this truck, no incentive for them to deal. I am negotiating the Dealer installed options be swapped for ones I want. The window tint for the spray bedliner is what I am working. They are willing to do that. Several dealers were adding a $5K upper and I said no thanks. They may still take your voucher

Cadillac Lyriq 2024- I noticed the lots are flush with EVs. When I test drove a Tacoma to see how it drove, Toyota had $20K off MSRP on their EV (Includes $5K state tax credit). I looked at Ford Lightening, Lexus, Cadillac, Kia, Hundai, all lots flush with EVs. They built up for anticipated demand and have since slowed down build so glut will eventually go away. The dealer I went to had 23 Lyriqs on the lot and 17 in transit/build. I did some research and found out invoice is about $3400 lower than MSRP. Edmunds site let me know majority of purchases in Feb (Had to extrapolate it) where $1000 above Invoice. Looking at Cargurus told me how many days the car was on the lot. After our test drive, the Sales Manager came in and I told him I know there is a glut, they have 40 to sell, the average price above invoice etc etc all in a nice and factual way. I said I would love to see his offer with my trade in. They came back with $1000 increase on my trade in and $1400 below MSRP on their first offer. In addition I will get $12.5K in state and federal tax rebates. The salesman later said the manager wanted to make a good no bull offer because he could tell I would grind him otherwise . Still discussing some Dealer options they offered at 50%, may skip them. So on this truck with negotiation I saved $2400 so far plus the incentives for almost $15K total off MSRP out the door considering the extra $1K they added to my trade.

The bottom line is if the cars are selling faster or as fast as they can sell them, it is hard to negotiate. If the dealer is flush with cars, then that is the opportunity

 

[pb4uski]

I'm back after a long day in the outdoors and have read through the post. When I ordered the Ford Maverick the MSRP is the price I will be paying. There is no markup above that price. So, I do know what it will cost me the day I walk in, but I plan on trying to get a drop in bed liner thrown into the deal or some cash credit from set price of MSRP.

The thing I don't know if I should try to negotiate beforehand or wait till that day. Sales lady email today and said, no is going to sell the Maverick from out under you the truck is ours when it comes in. They post them on their site for advertising etc.. They have eight in transit and have all been special ordered. So, none they can sell if someone walks in and wants to buy one.

I bought the same truck in Oct 2023 having ordered it in Sept 2022. You are pushing a rope. The dealer has no incentive to agree with your asks. If the dealer says no and you walk away then they can sell at MSRP plus a mark-up.

Ford's deal with the dealers is that they must stick to MSRP if the person placing the order wants the Maverick but if not then it is the dealers to sell for whatever the market will beat. Sort of crazy but that's the way it is. So the dealer wants you to walk away and has no incentive to make any concessions.

FWIW, while I had a spray on bedliner in my old truck for the Maverick I opted for just a bed mat. I'm less worried about the sides and back of the bed. Happy with that decision so far.

 

[DrRoy]

I expect that you will have to pay MSRP or they will find another who will.

 

[street]

Thanks for all the advice and views but I will see if there is any give and see what happens from there.
Being a loyal customer may have some negotiation power to get something in the deal. Time will tell. The question is should I do this before I walk in or get where they stand before the end of April on a nailed down etched price?

 

[frank]

bought a 2023 rav4 hybrid in october of 2023. I had waited a couple months for it. I told the dealer that I would take any one of the model I wanted that came in and was not spoken for. I got a price from the dealer when they had one that was available and it was a thousand under msrp. I told them I would take it and when it came in I looked at it and told them I would buy it. done deal, but no negotiation on the price they quoted. they said if it comes in and I don't want it they had a waiting list.

 

[Romer]

I would try before you walk in. As long as you are nice about it the worst that can happen is they say no

 

[street]

I would try before you walk in. As long as you are nice about it the worst that can happen is they say no

Yep, I am favoring this style. It is just good business to be able to sit down and get the best deal you can. The salespeople, sale manager would most likely do the something in buying a large purchase.

I don't want to play games, but I have always in land deals or other large purchases went in negotiation mode. Thinking back I don't believe I was ever hurt by doing it and I can't think of one time it didn't work out in my favor.

We will see what happens. I will try to get in and see salesperson next Monday when I will be going to the city for other business.