How to negotiate to avoid dealer prep fees? (insurance, luxury car, auto)

[vpcats]

Hi everybody.

Suppose you get what sounds like a good deal on a new car - say a Toyota Rav 4 or a Nissan Rogue or Murano, so not luxury cars and fairly low budget.

Then they'll try to "stick it to you" through financing deals and add dealer prep fees, etc.

What do I need to do to get the real bottom line and not pay the extras?

Thanks for your comments!

[Stratford, Ct. Resident]

Give them your best offer and tell them you're only going to pay state sales tax and state registration fees on top of that "best offer". If they want to put down an advertising surcharge, an administrative surcharge, a processing fee, etc. don't worry about how they structure the pricing within the contract. Just worry about: Here's my offer, i'm only paying state mandated fees on top of this offer, period. And when/if they try to slip in a small additional charge on the contract, don't argue, just get up and walk out. They'll run after you, very quickly.

[vpcats]

Originally Posted by Stratford, Ct. Resident

Give them your best offer and tell them you're only going to pay state sales tax and state registration fees on top of that "best offer". If they want to put down an advertising surcharge, an administrative surcharge, a processing fee, etc. don't worry about how they structure the pricing within the contract. Just worry about: Here's my offer, i'm only paying state mandated fees on top of this offer, period. And when/if they try to slip in a small additional charge on the contract, don't argue, just get up and walk out. They'll run after you, very quickly.

LOLLLLLL. Wish you could go with me.
They so love to mumbo jumbo you to death.

Thanks!

Oh... are Destination Charges mandatory? It's like $800 for these cars.

[Stratford, Ct. Resident]

Originally Posted by vpcats

LOLLLLLL. Wish you could go with me.
They so love to mumbo jumbo you to death.

Thanks!

Oh... are Destination Charges mandatory? It's like $800 for these cars.

Yes, destination is mandatory on a new vehicle. It will be printed on the monroney sticker that's on the window of a new vehicle.

[f_m]

You may want to consider writing down the number you want to pay, that way you can refer to it and help you from being swayed. Just look at the writing and stick to it.

[texdav]

Most dealers will be very liberal in negotiating anything not on the MSRP window now days.Best thing is to find out the invoice price at several sites that does list these and go from there really.Destination is always on the invoice and MSRP sticker.

[ranger17]

many dealers do those charges. Like noted above, let them know what you wish to pay ( and do some research on kbb or edmunds.com and be reasonable in your offer ) and hold to it.
One thing to note, at least back in WI and perhaps in other states as well. Some F&I managers can and will try to finance you thru their lenders at an upcharge. BUT others will at least match the rate you were quoted, and possibly from the same lender. That just means you get the same cost, and they do the paperwork to save you a trip to your bank ( bank will pay dealer a small spiff for the task ).
Also, the last couple cars we financed were not only thru the dealer but thru the manu's finance division. Yes this was before the market crash so who knows how it all works out now. But we searched our cu's and local banks to get their best rate, and the manu was better each time.
Just another way to save some $$.
good luck

[ferretkona]

I bought two new Ford trucks last year thru Costco. They sold them to us for $2500 under the dealers invoice, threw in 100,000 mile warranties. Could not be happier. If you don't have a Costco card Sam's - club has a similar program. You still get any dealer offers on top of the Costco program - low interest, rebates, etc,,

Do not buy the Gap insurance from the dealer. Your auto insurance will sell it way cheaper.

[vpcats]

I did go to two dealerships yesterday. The Nissan guy was nice and he said he took the shortcut with me. Gave me his best price with no dealer fees or anything extra. I had my numbers and he had his and it didn't work out because he had no base Rogue SLs left and said there were none in any other dealerships so we were only working with the high end one which didn't add up for me.

Then I went to the Toyota dealer. There is only 1 base Rav4 in another dealership. The one I was at gave me a written quote that included $600 dealer prep. I told him - I am not paying THAT and if you take off another $1000, you've got a deal. They wouldn't reduce the $1000 because the car was at another dealership so they couldn't lose money.

I do have a credit union that has a service that they will find you the car you want without all the markups, etc. THEY SAY.

And thanks for the Costco tip. I have a membership with them and forgot all about their car buying service.

Now I know where the my Rav4 is too.

[ferretkona]

I did most of the buying with emails and phone calls to the dealer, spent less than a hour at the dealership both times. Using costco really stream lined the purchases.