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Hi, I have never purchased a new car from a dealership or financed a car. I have always bought a used car and paid cash in full for it. I am thinking about buying a new Toyota from a local dealership. The MRP for the car is about $22,000. How much should I offer the salesperson? I was thinking about making an offer of $19,000. I don't want to make too low or too high of an offer. Would $19,000 be a wise offer? I will be financing the car from the dealership, trading my car in (worth about $3,000 as a trade-in), and putting a $5,000 deposit down. Also, I believe there is a $1500 rebate for the car. If I offer say $19,000 for the car, would that then void the rebate, or would the rebate still be applicable? Any help/info provided would be much appreciated as I don't want to go to the dealer ill-prepared....Thanks!
Hi, I have never purchased a new car from a dealership or financed a car. I have always bought a used car and paid cash in full for it. I am thinking about buying a new Toyota from a local dealership. The MRP for the car is about $22,000. How much should I offer the salesperson? I was thinking about making an offer of $19,000. I don't want to make too low or too high of an offer. Would $19,000 be a wise offer? I will be financing the car from the dealership, trading my car in (worth about $3,000 as a trade-in), and putting a $5,000 deposit down. Also, I believe there is a $1500 rebate for the car. If I offer say $19,000 for the car, would that then void the rebate, or would the rebate still be applicable? Any help/info provided would be much appreciated as I don't want to go to the dealer ill-prepared....Thanks!
It was wise of you to ask this question before buying. Here are a few tips:
Never negotiate down from MSRP. Negotiate up from invoice. Invoice is what the dealer paid for the car. You can find this information at sites such as Edmunds. Simply select the options of car you want on the site to get the invoice for the particular car you're looking for to get the invoice as equipped.
The Edmunds site should also alert you to any incentives on the car. These incentives come from the manufacturer, not the dealer. So negotiate the price of the car, and after they agree, then you subtract the incentive from that. This sometimes can take you below invoice, which is okay because the dealer isn't paying the incentive.
Your goal is to get the car for as close to invoice as possible. Dealers can actually sell you cars at or below invoice and still make money on the deal because of a lot of hidden incentives they get from the manufacturer. You will never learn about most of them. But one that is known is the holdback. I won't go into what that is, but for a Toyota it amounts to 2% of the base MSRP of the car before adding any options. So if a Toyota has a sticker of $25k with options and a $20k base sticker before the options, the holdback is $400. If the invoice of this hypothetical car with its options is $22k, the dealer could sell it to you for that and still make $400. Holdback is not negotiable. You only bring it up if you're negotiating a price near invoice and they claim they won't make any money.
With all that knowledge in hand, here's the biggest trick to buying a car. Never go to one dealer. Go to several, and make them bid against each other for your business. You'll be surprised how good a deal you get. You don't have to physically go to each dealership. Simply contact their Internet sales department, tell them what car you want and that you've sent the same request to other area dealers. Then watch the bids come in.
These strategies won't work with a car that's rare, a newly completey redone model, or anything otherwise in short supply and high demand. There's nothing from Toyota currently in any of these categories, so you should be good to go.
It was wise of you to ask this question before buying. Here are a few tips:
With all that knowledge in hand, here's the biggest trick to buying a car. Never go to one dealer. Go to several, and make them bid against each other for your business. You'll be surprised how good a deal you get. You don't have to physically go to each dealership. Simply contact their Internet sales department, tell them what car you want and that you've sent the same request to other area dealers. Then watch the bids come in.
These strategies won't work with a car that's rare, a newly completey redone model, or anything otherwise in short supply and high demand. There's nothing from Toyota currently in any of these categories, so you should be good to go.
Fantastic advise, the last 6 cars I purchased was via the Internet. The only time I visit a dealer is to test drive the car, I just tell the salesman I have not decided which car I want and will get back to them. DO NOT sit down with the salesman or bend to the pressure. As far as your trade in, negotiate the new car 1st, then the used car. Always ask for the "out the door price " on the new car this will include all fees, rebates, registration, tags, prep etc etc this way you are comparing apples to apples on each deal they send you. Once you get to the dealer to pick up the new car if it is different, the price, options on the car, etc then what they emailed and agreed on WALK OUT. Make sure you check the paper work before you sign to ensure it is what you agreed to.
I'd rather buy a car then a house .Everyone has given good advice all I want to add is the trade in if you have one,wait till the deal is done then say "ya know what you were right I want to add in my trade" ,it has always worked for me and I always get about $5/800 more(above and beyond what was offed) for my trade.
I'd rather buy a car then a house .Everyone has given good advice all I want to add is the trade in if you have one,wait till the deal is done then say "ya know what you were right I want to add in my trade" ,it has always worked for me and I always get about $5/800 more(above and beyond what was offed) for my trade.
Actually the best way to get the most money for your old car is sell it yourself. Dealers never offer top dollar for trade ins because they will attempt to profit off of them too.
I used truecar.com when buying my car and aside from saving some money, it made the experience a whole lot better. No back and forth "let me check with my manager BS". You basically just go in to sign paperwork and pick up your car. Another technique I guess you could use while using True Car while not really using True Car is to take the lowest quotes price to a dealership outside of the True Car network and say, "This is what I can get at this dealership, can you guys beat it?"
Actually the best way to get the most money for your old car is sell it yourself. Dealers never offer top dollar for trade ins because they will attempt to profit off of them too.
Yes , it's just that the dealer will do all the paper work hassle for you and you don't have to go to the DMV.
Actually the best way to get the most money for your old car is sell it yourself. Dealers never offer top dollar for trade ins because they will attempt to profit off of them too.
Sounds like a good plan, except when you trade in a car you only pay sales tax on the price you pay over the trade in value.
Quote:
Originally Posted by G1..
Yes , it's just that the dealer will do all the paper work hassle for you and you don't have to go to the DMV.
What paperwork hassles do you have if you sell a car privately? Other than turning in the plates?
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