Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Negotiating New Car Price?
Old 02-23-2017, 01:05 PM   #1
Full time employment: Posting here.
RetiredGypsy's Avatar
 
Join Date: Mar 2008
Posts: 979
Negotiating New Car Price?

I think it's time to trade in the Civic for something a little more accommodating to my deteriorating derriere. I have no idea how to go about negotiating for a good new car value, and I have no idea if any article from any online source is reliable or not.

I'd love to hear how you managed to walk away feeling like you got the best deal you could have when you got your last vehicle.
__________________
I'm free and I like it!
RetiredGypsy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-23-2017, 01:35 PM   #2
Full time employment: Posting here.
 
Join Date: Apr 2014
Location: Houston
Posts: 733
#1 - decide what you want
#2 - get price for that choice from TrueCar app and also from Carmax website. Use these as a doublecheck that any price you are given from dealers is not ridiculous.
#3 - Go through the internet to ask for quotes from the dealers you are interested in working with. Can use their website / email system to ask for a quote.... or can use some online services. Consumer Reports used to offer such a service. Our local Credit Union also offered that service. Here's some tips from Edmonds https://www.edmunds.com/car-buying/h...for-a-car.html

When you get a price you like, THEN go into the dealer to close the deal. Talk only the person that sent you the offer. Be ready to walk out if they add costs to their original offer (which typically they try to do). Also if they get up to go ask for management permission for anything....wait 5 minutes and then start walking out. Typically it's all smoke and mirrors and they'll come running out to catch you before you go.

Warning: I hate working with dealers. Bought only 1 from a dealer in recent years, the rest from Carmax.
Whisper66 is offline   Reply With Quote
Old 02-23-2017, 01:39 PM   #3
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 2,805
Also, if you're considering an extended warranty, they are very negotiable. I got a 7 year/100K miles for just under $600.
Dash man is offline   Reply With Quote
Old 02-23-2017, 02:04 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,500
If you rarely buy a car then do not worry about trying to get the bare minimum price that someone said they were able to get.... just not enough in it to worry about...

But as suggested, you can look at the web and get a good idea of what one should sell... just make sure they do not add on a bunch of 'extras' or 'fees'...

I always ask for the drive out price to compare... most all dealers are pretty close... say within a few hundred, but not always... you can either take the price of the lowest or the dealership that seems to be the best...
Texas Proud is offline   Reply With Quote
Old 02-23-2017, 02:08 PM   #5
Full time employment: Posting here.
RetiredGypsy's Avatar
 
Join Date: Mar 2008
Posts: 979
Quote:
Originally Posted by Texas Proud View Post
If you rarely buy a car then do not worry about trying to get the bare minimum price.... just not enough in it to worry about...
I forgot I had worked the math on this before I bought the Honda. Used and new car values here are so similar that over a long enough period of ownership (I figured both 15 and 20 years) a difference of several thousand was minimal.
__________________
I'm free and I like it!
RetiredGypsy is offline   Reply With Quote
Old 02-23-2017, 02:19 PM   #6
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 44,165
I think that some of us are always going to feel we got a great price (even if it was only so-so), and others of us are always going to feel that we could have done better (even if we squeezed the last nickel out of the sales person). This has more to do with one's personality than with negotiating success for many of us.

It goes without saying to do your homework before you go to the dealer. Then decide on a net price (including the trade in), because they will bring the car price down and then pay you less for the trade in, if they feel that will boost your ego enough to make a deal.

I don't buy any extras like an extended warrantee; in fact, I always only offer a set price for everything, including TT&L, prep, and everything else, an "out the door" price so to speak.

Once it is over and you have driven home in your new car, let it go and stop fussing about how much you paid. It's done, so enjoy your purchase and don't let the price ruin the experience.
__________________
"It ain't over till it's over"
- - - Yogi Berra (1973)
W2R is offline   Reply With Quote
Old 02-23-2017, 02:32 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 15,500
Quote:
Originally Posted by W2R View Post
I think that some of us are always going to feel we got a great price (even if it was only so-so), and others of us are always going to feel that we could have done better (even if we squeezed the last nickel out of the sales person). This has more to do with one's personality than with negotiating success for many of us.

It goes without saying to do your homework before you go to the dealer. Then decide on a net price (including the trade in), because they will bring the car price down and then pay you less for the trade in, if they feel that will boost your ego enough to make a deal.

I don't buy any extras like an extended warrantee; in fact, I always only offer a set price for everything, including TT&L, prep, and everything else, an "out the door" price so to speak.

Once it is over and you have driven home in your new car, let it go and stop fussing about how much you paid. It's done, so enjoy your purchase and don't let the price ruin the experience.

Yes, that is when you know you have a good price if they will not give you any more on your trade in....

We had gotten a good price on a car for my sister... but the trade in was below what the web said it should be... they said they could not go any lower... so, we went to CarMax and they gave her a much better price...

On my last car purchase, when I did that CarMax was only a bit more than the dealer, so with the tax savings it was a wash and I just traded it in... it was listed for twice what they gave me.... but I do not want to try and sell a used car.... just not worth it to me...
Texas Proud is offline   Reply With Quote
Old 02-23-2017, 04:50 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 12,721
Get a price through Costco, then start asking one dealer after another to beat it, send the lowest bid around to be beat, then send that lowest bid around.....until you get no lower bids. Do this via email. I ended up almost $700 under the Costco price on a popular model.
travelover is offline   Reply With Quote
Old 02-23-2017, 05:17 PM   #9
Moderator Emeritus
Ronstar's Avatar
 
Join Date: Aug 2007
Location: Northern Illinois
Posts: 12,545
Find an internet forum for the vehicle you wish to purchase.
Find what kind of percentage discount that others have received off sticker price.
Call some dealers to see if they will sell for that pct off sticker
Get the value of your trade (and value if you sell it) in from Kelley's Blue Book
See if dealer will sell you new car at pct off sticker & accept Blue Book trade in value.
If so, then do the deal.
If not, buy the car without trade in at pct off sticker and sell your old car to a third party
__________________
"Not all who wander are lost" - J.R.R. Tolkien
Ronstar is offline   Reply With Quote
Old 02-23-2017, 05:27 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
easysurfer's Avatar
 
Join Date: Jun 2008
Posts: 10,659
Quote:
Originally Posted by RetiredGypsy View Post
I think it's time to trade in the Civic for something a little more accommodating to my deteriorating derriere. I have no idea how to go about negotiating for a good new car value, and I have no idea if any article from any online source is reliable or not.

I'd love to hear how you managed to walk away feeling like you got the best deal you could have when you got your last vehicle.

If you hate the process, you can also hire someone to do the negotiating for you.

Quote:
If you’ve ever dreaded going to the car dealership, you’re not alone. That’s why services exist that help people buy cars without ever setting foot on a lot.


Once you decide on a car model, car-buying services use certified representatives to do all the searching and haggling for you. And online car shops enable you to buy from your living room couch.
https://www.nerdwallet.com/blog/loan...uying-service/
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
easysurfer is offline   Reply With Quote
Old 02-23-2017, 07:02 PM   #11
Full time employment: Posting here.
FIREmenow's Avatar
 
Join Date: May 2013
Posts: 756
Quote:
Originally Posted by travelover View Post
Get a price through Costco, then start asking one dealer after another to beat it, send the lowest bid around to be beat, then send that lowest bid around.....until you get no lower bids. Do this via email. I ended up almost $700 under the Costco price on a popular model.
I did something similar, but I sent only one email with ALL of the dealers in the TO: line - that way they all new that they were competing against each other. I told them the lowest price on the return email would win my business.
__________________
Believe me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats.” ― Kenneth Grahame, The Wind in the Willows
FIREmenow is offline   Reply With Quote
Old 02-23-2017, 07:03 PM   #12
Recycles dryer sheets
 
Join Date: Apr 2007
Posts: 410
I got quotes from both TrueCar and Costco, but then ended up finding an advertised sale at a significantly lower price at another dealership in the region that included the VIN# (so I knew it was not bait and switch). They did tell me I would be eligible for one $500 discount that later got pulled -- I decided not to fight it because with the other discounts I was getting the car was still roughly $2000 under MRSP and well under the other prices I had been quoted. That included a $1500 discount for dealer financing at a somewhat high rate, but I paid it off with the first payment so only paid about $80 in interest, which seemed worth it for the $1500 overall discount.
lhamo is offline   Reply With Quote
Old 02-23-2017, 07:29 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 1,603
Some good advice here. As with most things, knowledge is king. You can get a 'decent' deal by using TrueCar, Costco, etc. But knowledge of what the dealer invoice is, what the hold back on the vehicle is, and various levels of employee and friend pricing is also useful. Look online, including other states for better deals to use as leverage (or even to purchase). [Note, if you are in a California emissions state you will need to buy a vehicle from one of the California emissions states or sometimes border states or 50-state emission vehicles.]

In the end on my last purchase (done Jan 2016), I ended up doing better than any of the services, but it took work on my part. (Ended up with 23% off MSRP.)

Even better is to not buy a new vehicle In my case, I didn't need one (already had two decent vehicles and an RV), but made the mistake one day of just stopping to see what was out there (which got my must have new vehicle craziness started).
copyright1997reloaded is offline   Reply With Quote
Old 02-23-2017, 07:57 PM   #14
Recycles dryer sheets
JohnnyBGoode's Avatar
 
Join Date: Apr 2016
Location: Bay Area
Posts: 143
Quote:
Originally Posted by copyright1997reloaded View Post

Even better is to not buy a new vehicle
Generally speaking that is my approach as well. Perhaps as OP said with a high quality Honda or Toyota the price difference between new and slightly used is so small that it is not really worth it getting used. But otherwise I've always espoused the "buy used and let the other original owner eat the initial depreciation of a new car" philosophy.

That being said, I do have an order in for one of those new Tesla 3's coming out, so I guess I'm not exactly consistent here.
JohnnyBGoode is offline   Reply With Quote
Old 02-23-2017, 10:34 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 27,499
I have bought 2 new vehicles in the last 18 months. In both cases I ended up ordering a car. I found that the vehicles on the lot frequently had trim levels or options that I didn't value enough to pay for and by ordering I was able to get exactly what I wanted and avoid those expensive add-ons.

On the first one, I had a defined make/model/trim/color and it was a car that was in high demand. I sent requests to a half a dozen dealers within 200 miles for an "out-the-door" price.... I had a phone conversation with the lowest (about 150 miles away) and was prepared to go with them. I called our local dealer, told them that I preferred to do business with them and that they needed to "sharpen their pencil" and I even shared with them the out-the-door price of the other dealer. They called me back and said that they could not meet the other dealer... they claimed they would lose money at that price but the countered with a price that was ~$250 more. I ultimately decided that buying local and not having to make a 300 mile trip was worth paying the additional $250 and placed an order with the local dealer.

On the second deal, my truck wasn't going to pass inspection so I needed to do something quick... I was ultimately between two makes of similar trucks and pitted the two against each other until I got a deal I was happy with. In order to get a better deal I agreed to 5% financing but then paid it off after a couple months of payments.

On the first deal after I had negotiated a cash price the manufacturer offered 1.9% financing so I decided to go with it... put the payments on auto-pay and I hardly know it is there but I have definitely made more than 1.9% on my investments since so that has worked out well to.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Old 02-24-2017, 01:56 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 12,721
Quote:
Originally Posted by FIREmenow View Post
I did something similar, but I sent only one email with ALL of the dealers in the TO: line - that way they all knew that they were competing against each other. I told them the lowest price on the return email would win my business.


In my experience, additional rounds will drive the price even lower, but one can stop whenever you're happy.
travelover is offline   Reply With Quote
Old 02-24-2017, 08:56 PM   #17
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 231
I recently purchased a new car and did a lot of research with the online sites and eventually got a great deal via e-mail with one of the internet sales agents at the dealer I purchased from. My best advice to you is to shoot for a manufacturer or dealer incentive which can be applied to the dealer INVOICE price (ignore fair price and MSRP price) so that you pay under dealer invoice for the car. I paid $1k under invoice. The dealership will still make money from their built in "holdback" value which they receive when they move inventory.
__________________
Seems to me that the corporation's race to the top is resulting in a race to the bottom for the employee's quality of life. FIRE can't come soon enough.
kjpliny is offline   Reply With Quote
Old 02-25-2017, 12:47 AM   #18
Full time employment: Posting here.
Ronnieboy's Avatar
 
Join Date: Feb 2008
Posts: 736
All good advise here. I'll throw in my $.03

Decide what you feel is a fair price for the car and go from there. I typically shoot for $500 over invoice. It all depends on the brand, model and popularity of the vehicle but that is what I usually plan. I will typically go on Edmunds.com, figure out the price of the car (and options) that I want, all based on dealer cost. Edmunds will usually give you an estimated price that 'people in your area are paying'. You should be considerably under that estimate, then I might try the Costco pricing but only to see their price that I also want to be under. I'll then take a look online at the dealership's inventory and go to the one with the most on hand.

I will do the test drive, so the salesperson has a little skin in the game and then tell then that I want xxx vehicle and this is how much I will pay. I believe it to be fair for both of us. if they say they have xxx but with zz extra package, I tell them tough I don't want the zz package so I'm not paying for it. If they have to 'talk' to their manager I say go ahead but I am leaving in 5 min. When they see you get up to leave they suddenly show up quickly.
Last but not least plan on walking away completely if you don't get the deal. When we bought our last vehicle, a 4Runner, I had barely turned out of the parking lot before I got the call to come back because they could make the deal. I also believe that going towards the end of the month does help with getting deals if the dealership is close to hitting sales goals.
__________________
I don't want to spend my entire life at work. I deserve more. - Want2retire aka W2R
Ronnieboy is offline   Reply With Quote
Old 02-25-2017, 03:10 AM   #19
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 3,061
My approach is to primarily consider dealers that only provide a "bottom line" price - no negotiation, but you know exactly what you are paying (and the only additional upsell they try is an extended warranty). A few even post their price as compared to the blue book value. of course, I don't get picky over colors and features - new and recently used cars these days seem to have way more "comfort" features than I'll ever use.
__________________
FIREd date: June 26, 2018 - wwwwwwhat a rush!
jollystomper is offline   Reply With Quote
Old 02-25-2017, 05:41 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 4,341
If you're in a big city, go to the newspaper classified advertising from Thursday to Sunday and see if any pricing is published. Those are usually cut to the bone--at least before the small print (i.e. documentary charges.)

Unfortunately today dealers are mostly advertising very low payments on retail leasing, and they can make any payment look attractive--with big capitalized cost reductions (down payments.) If I was going to lease, no down payment is the attractive feature.

I agree about going to Edmunds and figuring out what cost on a specific is. Then look for the current published manufacturers' sales incentives to subtract. $300 over cost is enough for most vehicles not including luxury brands.

Another angle is to stay away from Honda and other high demand brands. I prefer to stick with dealers that don't "go for the throat" profit wise.

A Ford or Chevy dealer has pickup trucks paying their overhead, and they're willing to cut the price on cars to move'em off the lot. The factories often make'em order X number of slower selling vehicles to get the high profit vehicles.

There are just so many angles to the car business, and an uninformed purchaser is not going to beat'em at their game. I worked in the auto business 24 years, and have friends with dealerships of many brands. My sister also owns a big city luxury car dealership. A personal relationship with a dealer helps you get a straight deal.
Bamaman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Please Help Re: Negotiating With Insurance Company Over Value of Totaled Car haha FIRE and Money 22 09-26-2012 05:02 PM
Negotiating a car deal..... VaCollector Other topics 33 04-27-2010 08:33 AM
Negotiating on medical bills DangerMouse Health and Early Retirement 20 04-02-2008 09:03 AM
Negotiating the back and forth between insurance and doctor billing maddythebeagle Health and Early Retirement 2 02-23-2007 10:52 AM
New car, old car, same car? cute fuzzy bunny Other topics 74 06-15-2006 04:27 PM

» Quick Links

 
All times are GMT -6. The time now is 08:02 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.