| New Car Buyer |
| ||
|
Our family is closing in on selecting a new car with an MSRP of about $40K. We won't be trading in our current car. If I strike the best or worst deal possible how much money can I save or lose? Is it hundreds of dollars or thousands of dollars? |
| bangalangadanga |
| ||
|
New cars are trickier than used cars in my opinion. New cars have the hidden factory to dealer rebates that the consumer is usually completely unaware of. Used cars are bought at wholesale auctions for pennies on the dollar. The public generally knows about this, but they are not invited to participate in such auctions. Your best bet for savings is in the used car department. That said, I think 10% off the sticker price would be a good deal. Make sure to go for 36,000 out the door. 36,000 for everything. Watch out for inflated closing costs and recording fees if you are unable to negotiate the sticker price down. I wouldn't expect much more than 15% off a new car. That would be pretty legendary in my opinion. Also, I think it is possible to get raped on the extra fees they throw at you when you go into the back room to sign the paper work. Say no to any extras they try to sell you. |
| Running on Empathy |
| ||
|
Don't forget the undercoating ...... |
| New Car Buyer |
| ||
Great insight. Thanks much. |
| Not Ryan Hall |
| ||
|
I held a bidding war by emailing several dealerships. Definitely worth trying. |
| Ghjkgcb |
| ||
|
Website kelly blue book gives a "fair price" for all new cars. Generally speaking it is a few hundred dollars less than the MSRP. The most important factor is how in demand is the car. Buying a Toyota prius is impossible for less than MSRP bc there is a supply shortage. I would suggest offering in the ~38k range on a 40k MSRP and pay no more than 39500. |
| Nickelodeon 100 |
| ||
|
Go to Edmunds.com, find the invoice price for exactly the vehicle you want (including all options, colors, wheels, etc) and take that with you to the dealership. You'll see that their isn't a significant amount of profit in new vehicles (usually) unless you're looking luxury or speciality. If you're serious about making a deal that's fair to you AND the dealership offer them some dollar amount above invoice that you're comfortable paying (which is profit for the dealership). Keep in mind that the dealership is their to make a profit and, just like any other business, they should be able to make a fair profit. I'd say 1% to 3% of invoice price is a tidy profit for the dealership and a great savings off MSRP for you. But if you really want to save, offer to purchase the vehicle RIGHT NOW for invoice less rebate. They'll take it 99.99% of the time. Beware of dealer addons. Window tint, door guards, paint sealant, etc are not part of the invoice and usually carry hefty profit margins for the dealership. Those prices are negotiable too. They might try and charge you 900 for all that junk when it cost, maybe 200. Be pleasant, informed and make a legit offer and you'll accomplish your goal. |
| Precious Roy |
| ||
|
It varies based on manufacturer and model. US manufacturers tend to pump up their MSRP way above what they expect to get selling the vehicle. So, you will see a Ford MSRP for $40k, but get sold after rebates and good haggling for close to $30k. Imports tend to be the opposite. Acura dealerships might not even give you $500 under MSRP on a popular model. If you do not want to buy it, someone else will. Also, as noted above EVERYTHING can be negotiated at the dealership: price, interest rate on financing, add ons (tint, vehicle etch, fabric guard, etc.), documentary fee, service contracts and extended warranties. The only thing that you may not be able to negotiate is GAP insurance. But, if they are selling debt waiver agreements instead of GAP, those can be negotiated. The easiest way to negotiate is to email dealership #1 and ask for their best price to drive the car you want off the lot. Then, email that price to dealership #2 and ask if they can beat it. Repeat until you run out of dealerships. Otherwise, take a good book with you and go face to face with a salesman. Be clear about what you want, start with a price that is just a smidge below invoice, come up a bit and then ask the dealership for their best offer. If it is too high, leave and go to the next dealership and tell them what the last best offer was at the previous dealership. If you work hard, you can save a lot of money. Dealerships generally would rather move a car today than pass up a customer who is ready and willing to buy. But you have to be ready to do the work. |
| Adam Smith |
| ||
|
Also, consider that the Edmunds TMV is an "average" of sorts, this is the expected market value of the car. You can definitely beat the Edmunds price, but even if you only match this price that's a reasonable benchmark. When we bought our new car (Honda Odyssey) last summer (bad time to buy that car) we shopped in 5 states and dealers had very different perspectives. For us, leveraging our trade-in made a big impact in getting a good deal, but that's not really an option for you. Two bits of advice for your quest: 1. If you want a good price, it requires putting in the effort. You won't get your best deal in just 15 minutes (or even 4 hours) of work. 2. Set a target "good" price that you're willing to accept. Your goal is not to set the AR in "best price paid for xx car" but to walk away with a good car at an affordable (for you) price. |
| asdffsda |
| ||
|
Get the True Market Value from edmunds.com and also the True Car price from truecar.com. Feel free to shop around at different dealers....you shouldn't feel bad about getting the dealers to fight for your business. I just bought a new car (one month ago) for about $100 over invoice (it's much cheaper than the car you're looking at, though). |
| Bill Huntington |
| ||
|
We just bought a new Subaru through Costco. They had a partnership with a dealer in our area. They show you their invoice and you pay $500 over that. |