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How long do you plan to keep the vehicle? Much more than 5 years and depreciation, for whatever reason, becomes pretty much a wash.
Thanks. I tend to drive my cars until they die, so I am not concerned with the loss of resale value, but the dealer doesn't know that. Just trying to understand what the loss may be to help with negotiations. (Trading in my car this time, because I need to upgrade to an SUV.)
Quote:
Originally Posted by hoffdano
Why take the price offered? Unless this is a no haggle dealer, the sales person fully expects the buyer to offer less.
In absence of any other specific information, I'd offer $1000 less. And work from there.
As for the reason for the pricing? There must additional dealer incentives not yet known by the usual sources.
Thank you. Somewhere to start.
Quote:
Originally Posted by 43north87west
Or maybe they have incentives for assuming some excess inventory. You can't find these things out because they're not published, and change frequently based on response to market conditions.
This might be the case. They have a LOT of Highlander inventory (over 80), especially so close to the release of the new model. Any idea what it is worth?
Was this an "internet sales" price? Because they usually provide a no-haggle price realizing that you know the invoice numbers, etc. Couple that with it being a 2013 instead of the latest model year, which usually is another ~$1k off...
ok, so I'm currently car shopping and have done a lot of research on how to get a good price. I know the MSRP ($36,870, includes destination), the dealer invoice ($34,469, includes destination), and there is a $1000 cust incentive and holdbacks of $733. So, true dealer cost is $32,749. My intention was to start my negotiations there and go up as far as $33,731 (3% above.)
So, imagine my shock when the first price they present to me is $32,528 ($32,029 plus a $499 processing fee.), which is $231 LOWER than (what I believe to be is) their actual cost. NO dealer is going to start the deal losing money, so I'm sure I've missed something. The dealer must be making money here somewhere.
So, I need some advice when I go back and start negotiating. How much lower should I offer? This is for a 2013 Toyota Highlander. I know the 2014 model (when it comes out early next year) will be completely redesigned, so I think I have some negotiating there, as I will take a big hit on resale value buying this model. Also, it appears they have over 20 of these (same trim line) on their lot, so they likely want to move them.
So, how low is a reasonable offer?
offer them a $1500 less than they offered you and work your way up. Make sure that their price isn't contingent on having to take their financing.
Thanks. I tend to drive my cars until they die, so I am not concerned with the loss of resale value, but the dealer doesn't know that. Just trying to understand what the loss may be to help with negotiations. (Trading in my car this time, because I need to upgrade to an SUV.)
Thank you. Somewhere to start.
This might be the case. They have a LOT of Highlander inventory (over 80), especially so close to the release of the new model. Any idea what it is worth?
You're assuming the dealer cares about anything but the numbers. They don't. They may eventually get down to the lowest price they would sell the car for (not likely), but they won't get there based on your concerns.
Shop several dealers in the area. Bargain with them all to see how low you can get them - then you know what the best price you can get is. Look on the Edmunds car buying forums - there will probably be a "prices paid for Highlander" thread - see how others are doing lately.
Low ball them to the point of near embarrassment. They will counter that and you can move on. Everything is negotiable - where do you want to start? $2K lower.
Who knows if the 2014 model is any good? The model you are looking at could very well be the choice of the decade. If you drive 'em till they drop - so do I - resale value is not a big point. My 93 truck is still worth at least $5K to someone who needs a truck for work.
This might be the case. They have a LOT of Highlander inventory (over 80), especially so close to the release of the new model. Any idea what it is worth?
I don't have any inside dealer or region-specific information on the incentives available to each dealer. Your best bet is to look at what people are paying for comparable vehicles in your area. Check Edmunds for this value. Between that and the quotes you get from different dealers you should get a good idea whether you are getting a good deal.
or just hold off until around late December or early next year. some 2014 model year are already on dealers lot or wait until you start seeing 2014 models at your local dealer. lots of dealers will still have some 2013 models on the lot in early 2014 so in that case you might get a better deal.
Of course the dealer is making money. That's why they're in business. If the price they are offering is better than what you were willing to spend, I don't see the problem.
Their cost has probably dropped since the info you have was made public.
The dealer always makes money.
Reminds me of that joke in a magazine years back.
New car lot salesman with cigar is standing under a huge sign that reads........."below dealer cost "
Young gullible looking guy is asking.........." how can you stay in business"
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