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Do you research online...there are millions of sites.
Know the exact car you want...don't car shop on the lot.
Don't bring a trade in.
Pay for car in full.
No add-ons or warranties.
Just pay for Car, Tax, and other fees.
It leaves then with only 1 thing to negotiate and its price.
No, typically you don't. Personalization really has nothing to do with that most of the time.
You're paying for timing. What I mean by that is a car on the lot now, spec-for-spec, is going to be cheaper than a car coming in three months from now just like it.
Manufacturer incentive programs always deal with cars on the lot NOW. Some programs are quarterly and some are monthly. What I've done several times is order a car so it'll arrive at the end of a quarter, say March 31st, and play the Q1 programs vs the Q2 programs and go with what's better. (Either have the papers dated 3/31 or 4/1, whatever works in my favor.)
I have a lot of experience in this business, both via employment and personal experience, so I know how to get the best pricing.
To the OP, TrueCar is usually a waste of money as I can beat their price on my own easily. Have helped numerous friends and relatives do that and even used TrueCar one time myself just to see. On a $30,000 car I beat TrueCar by $1,000. They are just a middleman and I have no use for them.
Best thing you can do is get two dealers bidding against each other on the exact same car. (I'm talking two Ford dealers, two Chevy dealers, or whatever.) You'll have to deal with some salespeople BS and some back and forth with each, but that's how you get the best deal. TrueCar will give you an average price with little hassle and that's fine for some. I understand why those unfamiliar with the industry may choose that route.
You need a drivers license mostly for a test drive.
Just have a friend do the test drive - then just pull over and drive.
This way your name is not provided.
Deal with the internet department at the dealer. I wouldn't even go for a test drive until I corresponded with them about their best price. I had the true car also but I managed to get it cheaper because after the test drive I told the salesman I had an appointment at another dealer. It was true. I was set to go and the salesman asked if I could wait a few minutes. I said ok and he comes out with an offer $700.00 cheaper than what I had expected to pay and cheaper than the true car price.
Deal with the internet department at the dealer. I wouldn't even go for a test drive until I corresponded with them about their best price. I had the true car also but I managed to get it cheaper because after the test drive I told the salesman I had an appointment at another dealer. It was true. I was set to go and the salesman asked if I could wait a few minutes. I said ok and he comes out with an offer $700.00 cheaper than what I had expected to pay and cheaper than the true car price.
Agreed. Last car I bought I had a specific internet price. I wanted it for ~500 less. After test driving, I said "internet manager stated X, if you sell the car for X less than 500, we have a deal." They didn't want to budge, but did, and I bought the car that night.
I've found the best way to open negotiations is to run up the dealership, punch the sales manager in the face to establish dominance, then nail the TrueCar quote to the management office door and demand $2500 off of that price and undying obeisance of all sales staff.
Start at the "true Manufacturer cost". Not the price that (insert number) misinformed buyers "paid" in your area..
A dealer pays 16k for the car, then gets 2k incentive if they can sell it in the first month- Its called the dealer discount via manufacturer to move product quickly. So now the dealer is at 14k . But you the buyer are looking at the MSRP that is set at 22k , and haggle them (so you think) to 19 k. Wow what a deal you got...NOT! They just made pure 5 k (26% Gross margin) . that is a sample of how it works in the capitalist market. The Transport and fees that are tossed in to make it look like they are not capturing the profits they need to sustain the operation of the business.
I am all for a business gaining profit. I am for a well informed buyer shortening that margin gap. Technically a business can sustain at 12% ..so that is the guideline I recommend. Naturally if you look at any govt buyers method you will see its 8% or less, so how is it that our govt can get car deals at 8% and you the tax payer can only haggle from the MSRP price.... A cars true value is still the same no matter "who" the buyer is...So be the savvy negotiator.
Start at the "true Manufacturer cost". Not the price that (insert number) misinformed buyers "paid" in your area..
A dealer pays 16k for the car, then gets 2k incentive if they can sell it in the first month- Its called the dealer discount via manufacturer to move product quickly. So now the dealer is at 14k . But you the buyer are looking at the MSRP that is set at 22k , and haggle them (so you think) to 19 k. Wow what a deal you got...NOT! They just made pure 5 k (26% Gross margin) . that is a sample of how it works in the capitalist market. The Transport and fees that are tossed in to make it look like they are not capturing the profits they need to sustain the operation of the business.
I am all for a business gaining profit. I am for a well informed buyer shortening that margin gap. Technically a business can sustain at 12% ..so that is the guideline I recommend. Naturally if you look at any govt buyers method you will see its 8% or less, so how is it that our govt can get car deals at 8% and you the tax payer can only haggle from the MSRP price.... A cars true value is still the same no matter "who" the buyer is...So be the savvy negotiator.
While the concept is basically correct, the overall numbers are way off. A dealer has far more costs associated with a car than just the actual price paid for a car. And manufacturer to dealer incentives cary wildly and aren't set, so it's impossible to say what they are.
On my last new car purchase I didn't use True Car, but did get the quote as a baseline number to shoot below. Made the mistake of selecting all the dealers in my area and got emails and phone calls galore!
The car my daughter wanted, specific color, model and interior, was not available in the Houston area. One dealer found one they would try to trade for "next week", but no promises since they were selling like crazy (Nissan Rogue).
So I called the closest dealer with one, in San Antonio, knowing the price they had on their website was between MSRP and True Car. I told the internet manager to give me his best price and to make it worth my time to drive there. He came back with a price several hundred below True Car, which was a decent deal to me. Ended up being about 10% off MSRP with no rebates or special offers. I don't like to haggle on a car and will pay what I consider to be a good price if that is what they are asking for it. Maybe I could have saved another $500-700 on a vehicle that was not a perfect match, but it was worth it to get her exactly what she wanted and in time for her birthday.
Oh, I did forget something. I know a guy at a Mazda dealer and when I was looking at the CX5 for my daughter and considering a Mazda6 for me, I asked him what the best deal he could get for me was, and he said right away, the best deals they give are the True Car price. I never got that far to test it though.
You need a drivers license mostly for a test drive.
Just have a friend do the test drive - then just pull over and drive.
This way your name is not provided.
This might be a ymmv situation (by individual or geographic region), but on every test drive I went on when I was looking for a new car last year, the sales rep rode with me in the passenger seat. They didn't just let me take the car and then trust me to bring it back. So I don't know whether it is truly possible to pull off that kind of bait and switch.
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