Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I have always wondered, whenever one says they want a car for 'x' price, are they asking the dealer to approve that price before or after everything else (taxes, fees) is factored in?
You can negotiate either way, for the price of the car or the "out the door" price. If you negotiate for the price of the car only, just make sure each time you arrive at a number that they go and factor in all extra charges so you know what the final cost will be to you.
Just be sure to try to keep all your figures WRITTEN DOWN in front of you.
Salesmen are really good a "losing you in the figures" by adding in some charges at the very end and by confusing you by using their own figures, not what you've got in front of you.
REMEMBER: The F+I (finance and Insurance) person is going to try to sell you everything under the sun once you've agreed to the deal with the salesman.....so beware and don't agree to anything because it's "just $10.00 a month more"......
You really have to buy the car twice... or at least negotiate it twice..once from the salesman and again from the F+I guy.
Don't forget they will always use the 4square paper. And they will scribble numbers all over the place making a jumbled mess. It can get confusing. And whatever you do DONT try and negotiate two cars at once or a trade in. Either negotiate the trade in after the car or sell it yourself. You'll get more money if you sell yourself.
The FIRST thing they will ask is what do you want your payment to be and if you're financing. They will also try to run a credit. That's because they're trying to place you in a certain bracket to see how much they can sell you or you qualify for and the payment will tell them how to stretch your loan to get close to that number. Don't let them do anything because if you don't buy the car you got a hard hit on your credit. Do that a few times and you just lowered your score a bit. When I make a offer its a out the door price. And I don't use the dealer for financing. Go you your bank or credit union bring your own financing and write them a check.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,186,228 times
Reputation: 57820
I will mean (and say) out the door. That makes them adjust or eliminate some of the dealer prep, destination, and paperwork charges. I once did a deal where I said "out the door" several times but the salesman, after two hours negotiating ended up at my price but then added tax, license and the rest so I walked out the door. He chased me and ended up getting to my
amount after another half hour or so (sticker 32k, out the door at $23k).
Yep, always negotiate out the door price. They can have all the dealer fees they want, just have to reduce the sales price of the car to accommodate.
And the finance guy is usually worse than the salesman. Bought a car last week and settled on 11K OTD. Went in his office and he comes out with $279/month. I look at online calculator and I get $212/month. He "secretly" put in warranties and service plans in the deal, probably adding another $3-4K. Sneaky, should have walked out then. And he goes through Toyota financing so we get a crappy 5.99% interest rate, and this is with our Tier 1 top credit. A quick call to our local bank and we were able to secure a very low 3% rate. Watch out for those guys.
Yep, always negotiate out the door price. They can have all the dealer fees they want, just have to reduce the sales price of the car to accommodate.
And the finance guy is usually worse than the salesman. Bought a car last week and settled on 11K OTD. Went in his office and he comes out with $279/month. I look at online calculator and I get $212/month. He "secretly" put in warranties and service plans in the deal, probably adding another $3-4K. Sneaky, should have walked out then. And he goes through Toyota financing so we get a crappy 5.99% interest rate, and this is with our Tier 1 top credit. A quick call to our local bank and we were able to secure a very low 3% rate. Watch out for those guys.
Toyota typically has good finance rates. We got our 2014 Venza at 1.9% APR.
I agree about the finance guys though. He wanted to charge us $12 a month to add on a 5 yr road hazard package on the tires. I did the math and that was $864. You could purchase the package outright for $400 (which we did). I normally say avoid all the junk they offer, but gap insurance is a good idea. We bought the hazard package because the tires are really expensive (we ended up using it two weeks later) but normally either avoid it, or buy it outright if you need it.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,186,228 times
Reputation: 57820
Quote:
Originally Posted by nylonggamer
gap insurance blows especially if you get it from a dealer
They wanted to add gap for $700 on our last purchase, we declined and the next day got it from our insurance agent for $10 every 6 months. At $20/year over the 4 year loan term that's $80, a lot less than $700 plus the additional interest.
I will mean (and say) out the door. That makes them adjust or eliminate some of the dealer prep, destination, and paperwork charges. I once did a deal where I said "out the door" several times but the salesman, after two hours negotiating ended up at my price but then added tax, license and the rest so I walked out the door. He chased me and ended up getting to my
amount after another half hour or so (sticker 32k, out the door at $23k).
How did this work? That's a 9k difference from the sticker! I was told that 10% maybe too much to ask off of MRSP. How did you get them to lower it that much?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
