New Truck-negotiation- cash back incentive

[bizlady]

We may purchase a new vehicle and there are currently cash back incentives. So my question is should we negotiate the deal as if there is not an incentive and then that gets added on the back end?

 

[REWahoo]

We may purchase a new vehicle and there are currently cash back incentives. So my question is should we negotiate the deal as if there is not an incentive and then that gets added on the back end?

You should, but the big question is will you actually be able to do so. I suspect the dealer will try very hard to discourage much in the way of meaningful additional discounts with the "it's already discounted" defense. Be strong and persistent.

Good luck.

 

[pb4uski]

IME the dealer will normally include any current manufacturer incentives in what they propose, especially if you ask for an out-the-door price (as you should so they can't add on other charges later). If you don't see it itemized in their proposal then tell them that you think you would qualify for it and ask them to add the discount to the proposal... if they say it is already included them push back hard.

 

[travelover]

Agree with above, negotiate out the door price - that is all that matters. Once you have that out the door price, you can get multiple dealers to compete for the best deal in an apples to apples comparison.

 

[RetireBy90]

I agree with others, the dealer will negotiate with all incentives already included. I don't much care as long as we both understand what is included and what isn't. Only exception I've found is being retired military, I've negotiated a out the door price and then asked about a military incentive if the brand has one. That way I can get my price and then deduct the military incentive. Others they may not include is a college grad incentive. although I haven't seen that one in a while.


Bottom line, be clear what is included in the figure you are working on so they can't try to change the deal once you get to an agreement.

 

[brett]

If you are hesitant to negotiate hard then try this. Send you exact requirement to several dealers including one or more from a different city/state that is fairly close by.

Go for bottom line, out the door pricing, net of all rebates. Let their respective internet sales teams compete.

Your best price may well be from a dealer who has one sitting on the lot.

Pick one.

A colleague of mine did this several years ago. It worked out extremely well for him.

 

[kgtest]

Agree with above, negotiate out the door price - that is all that matters. Once you have that out the door price, you can get multiple dealers to compete for the best deal in an apples to apples comparison.

Bingo. I drove from GMC to Chevy, then...went to a different competitor Chevy dealer. They had the rear end, engine, cloth, color and price was 10k below sticker. Not many options tho.

 

[statsman]

I would side with the out-the-door price arguments. That gives you a specific cost without all of the haggling of dealer price plus any discounts or incentives.

For our last vehicle purchase in 2015, we had a price amount that we wanted to get under. After that, it became which vehicle in stock met our specific requirements the best, even if the cost was slightly higher than a similar vehicle which was missing a feature or two (to include interior and exterior colors).

For some reason, the vehicle we wanted with the specific interior and exterior colors was an additional 5% cheaper than the other similarly configured models on the lot, and they had several of the latter. We never did figure out why, as it was a very popular color for this model vehicle. It was already below what we wanted to spend, so no haggling was needed. For some reason, they offered up another $750 incentive (having a 3rd car from the same manufacturer was probably the reason), then I noticed an additional $500 discount for being a credit union member. Yep, got that too. We ended up close to 20% off MSRP, and this was for a late July purchase.

Good luck in your search. My main rule of car shopping has always been you need to be able to walk away from the lot or the salesperson's desk if you aren't happy. Some people can do this. Others, not so much.

 

[travelover]

......... My main rule of car shopping has always been you need to be able to walk away from the lot or the salesperson's desk if you aren't happy. .......

My main rule is to only enter the dealership to pick up the car. No psychological games, no "I have to ask my manager" while you wait and wait, no "we lost your trade-in's keys", no pitting husband vs wife.

 

[ivinsfan]

I have one exception to this it, happened when we bought our last new car in 2013..

DH was looking at the car a lot on Edmunds for pricing..Nissan Altima..we were ready to buy, one day a targeted ad pops up on the edmunds site...get a 750 dollar I think it was a visa card..targeted to your name and email. It was directly from Nissan it was buy within the next 30 days...bought the car at a really good price, came home filled out the paperwork and sure enough we got the money..that was sweet...

 

[pb4uski]

.... Your best price may well be from a dealer who has one sitting on the lot. ...

Bingo. I drove from GMC to Chevy, then...went to a different competitor Chevy dealer. They had the rear end, engine, cloth, color and price was 10k below sticker. Not many options tho.

We have actually ordered our last two vehicles, in part because around here it seems that the vehicles on dealer lots are loaded up with higher trim levels and options that we don't care about and are expensively priced.

I built out exactly what I wanted on the manufacturer's website and then had several dealers "bid" an out-the-door price on that configuration... if they had one in their lot or could get one from another dealer then fine, but otherwise just order it from the factory.

That way we also got the color and upholstery that we wanted and the options that we thought were a sensible value proposition.

 

[srpuywa]

Rule #1 -- never fall in love with a vehicle
Rule #2 -- be prepared to walk away from a deal
Rule #3 -- be pre approved for a loan and take a lower rate if available

 

[ivinsfan]

Rule #1 -- never fall in love with a vehicle
Rule #2 -- be prepared to walk away from a deal
Rule #3 -- be pre approved for a loan and take a lower rate if available

Rule 4..pay cash that works too...

 

[wolf]

If you are hesitant to negotiate hard then try this. Send you exact requirement to several dealers including one or more from a different city/state that is fairly close by.

Go for bottom line, out the door pricing, net of all rebates. Let their respective internet sales teams compete.

Your best price may well be from a dealer who has one sitting on the lot.

Pick one.

A colleague of mine did this several years ago. It worked out extremely well for him.

Purchased, 2019, Subaru, using this technique. Best way to go. So much easier. Get "out the door price". 1st round. Then, see if local Dealers can
beat/match, the Dealer, who is usually further away. Only see the Dealer in person to purchase/pick up the car. Internet Price. Just be sure you know the exact model/options you want, so you can get good quotes.

 

[Helen]

I bought my last 2 cars through Costco and will never go back to negotiating on my own.

 

[JoeWras]

How do you all test drive when using these techniques?

 

[pb4uski]

I test drive several vehicles that I am considering and tell the salesman that I'm not ready to make a decision so it is a waste of time to give me a price, then after test drives I make a decision on the vehicle and then start the bidding process.

 

[OldShooter]

We may purchase a new vehicle and there are currently cash back incentives. So my question is should we negotiate the deal as if there is not an incentive and then that gets added on the back end?

As others have said, that will already be built into the price the dealer gives you.

One thing that has not been mentioned is the possibility that dealers might have some trucks that are one model year old but still not titled, still considered new. That's what we look for when we go vehicle shopping. Whatever price you get on a new truck, there should be a discount on the older truck that reflects much of the depreciation it has experienced.

We just did a similar thing buying my wife's Mini Countryman. She bought a CPO car with a few thousand miles on it, but it had never been titled because it was driven by a factory rep. It was the best buy on the lot; even the store manager said that. The only negative is that it has every option known to mankind and a user interface that requires you to pull over and consult the manual every time you want to do something beyond changing the radio station or the temperature setting.

 

[travelover]

I bought my last 2 cars through Costco and will never go back to negotiating on my own.

I started with Costco pricing and then negotiated down from there. Anyone can get Costco pricing, it is the most you should pay.

 

[Happyras]

I started with Costco pricing and then negotiated down from there. Anyone can get Costco pricing, it is the most you should pay.

+1
I bought two new vehicles this year. Our new Ram 3500 I did a bid war with two states and went with lowest bid locally with tax. We got all the cash incentives, a dealer discount and 0% finance. Similar on the new BMW. Costco is easy pricing, not the best. In the end, the truck came in about $13,000 off plus 0%, typical Costco price in the area would have been $9,000 off, with incentives/rebates.

 

[aja8888]

I started with Costco pricing and then negotiated down from there. Anyone can get Costco pricing, it is the most you should pay.

When I was in the market for a new GMC pickup Canyon model, I used Costco pricing and went to the dealer. Dealer said Costco uses "supplier pricing". He gave me the Costco price then deducted 5% off that. I didn't buy as I wanted to shop prices, and went to another dealer. The second dealer quoted a price even lower than the first dealer for the same truck.

 

[wolf]

I bought my last 2 cars through Costco and will never go back to negotiating on my own.

Per, previous posters.

1. Costco, gets, "kickback", from Dealer. So, you will get a good price, but not the best.
2. If you are not a "good", negotiator, Costco, not the best, but an OK price.

 

[wolf]

How do you all test drive when using these techniques?

You, visit, Dealer. Test drive the vehicles you are interested in. I take a picture of the "MSRP" Sticker. Then you leave the Dealer.

Once you decide, I use the "internet" approach. Ask for "out the door price.

 

[38Chevy454]

Agree to just focus on the out the door price. Dealer has incentive to find as many of the mfr kickbacks to throw in the deal to make the best price using mfr's money. Dealer also has additional ways to make money that are not part of the public incentives: mfr holdback, finance commissions, sales volume kickbacks from mfr, extended warranties, special paint treatments, as examples.
That's why it is also good for you to already have your own financing details known from your bank or credit union. If the dealer can beat them, go with it. If not you know the dealer is trying to get some of that commission by having higher interest rate. I never buy extended warranty items or any of the items offered in the finance guy's office.
You can't do much on the holdback, or the volume incentives, except buying at end of the month or better yet quarter where an extra sale puts the dealer over the threshold. That lower price than normal sale might give dealer more back in total than lost in the sales price for example.

 

[JoeWras]

You, visit, Dealer. Test drive the vehicles you are interested in. I take a picture of the "MSRP" Sticker. Then you leave the Dealer.

Once you decide, I use the "internet" approach. Ask for "out the door price.

So, DO NOT get an offer from them? (An earlier post said to tell them it is a waste of time.) Do you deal with the same salesperson on internet follow up?

I'm no sales person, but I realize they are working, and if I buy there I'd at least like to see them get a cut of what they entitled to.