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Dunno what the article pointed out but all car buying services from big banks / companies are setup to make you feel like you got a fair deal when in reality your getting hosed. They get paid by car mfrs and dealers so they are in effect working for dealers/mfrs.
You can negotiate most all new cars down 15-20% off the invoice price if you contact enough dealers and can stand firm on your price. Look at Truecar stats. At least some of the people are getting that 15-20% off the invoice price, while the avg paid is usually about 2% or so off the invoice.
I don't know where you take "getting hosed" out of this. The average new car costs $33K. $500 is 1.5% of that. That isn't a horrible deal. "Not the Cheapest" doesn't equal "Getting Hosed."
Also, your advice is extremely broad and isn't applicable to most brands. Maybe GM and Chrysler, But lots of brands you aren't going to touch 20% under invoice.
Take the invoice price and take 20% off. Thats your target for a great deal. 15% is a good deal. 10% is minimum, might be necessary for a select few high demand cars, and its better than what most people pay and its better than what a car buying service is going to get you generally.
Quote:
Originally Posted by justanokie
Dunno what the article pointed out but all car buying services from big banks / companies are setup to make you feel like you got a fair deal when in reality your getting hosed. They get paid by car mfrs and dealers so they are in effect working for dealers/mfrs.
You can negotiate most all new cars down 15-20% off the invoice price if you contact enough dealers and can stand firm on your price. Look at Truecar stats. At least some of the people are getting that 15-20% off the invoice price, while the avg paid is usually about 2% or so off the invoice.
Where are you pulling these numbers from?
I don't think "invoice" means what you think it means.
Where are you pulling these numbers from?
I don't think "invoice" means what you think it means.
Depends on the car. The Prius I have goes for about 20% lower than invoice or 25% off MSRP. It's one of the more discounted cars though and one of the reasons I bought it. Without the steeper discounting off MSRP it really wouldn't have been worth the price to me. A couple thousand above what a Corolla goes for, to me it's worth it. For the $6,000 over the MSRP is... well, that's a lot of gas. With many cars you can't get anywhere near that kind of discount off MSRP/invoice.
Can you use the Costco price to negotiate a lower price from a non-Costco dealer? How do you get the price from Costco? Does it include all of the hundreds of fees and extras the dealer adds after agreeing on a price?
Do you have a list of car makes that you feel this is possible to achieve? Are you assuming the dealership is being liquidated, or are you including factory rebates in your figure? If you are including rebates, then there is no sense in calling around for months, you just wait for the rebates.
Locally, even a new car from two model years ago won't be sold for 20% off of invoice, without rebates making up the bulk of the discount.
I meant MSRP in my original post, not the invoice. But you can still get well below the "dealer invoice" price.
Any car except a few specific high demand and/or very low production number cars.
No liquidation.
Yes you can apply any rebates.
Yes they are sold for 20%. Look at a place like true car and you can see at least some people are getting 15% to 20% off of the msrp which is well below the invoice price. Rebates are besides the point. It may or may not include a rebate but with or without one you can get to that discount on nearly any car. Rebates are nothing more than a sales tool to publicize what is normally considered protected dealer profit margin by car mfrs.
Quote:
Originally Posted by JONOV
I don't know where you take "getting hosed" out of this. The average new car costs $33K. $500 is 1.5% of that. That isn't a horrible deal. "Not the Cheapest" doesn't equal "Getting Hosed."
Also, your advice is extremely broad and isn't applicable to most brands. Maybe GM and Chrysler, But lots of brands you aren't going to touch 20% under invoice.
I bought a new 2014 VW passat SEL TDI last july. MSRP was running around 34.5K or so for that car. (going from memory so my numbers might be just slightly off but they are close). Dealer invoice was around 32.5K or so. I called 10 dealers that are within a few hours drive. NONE would come off of mid 32K range, most wouldn't go below 33K. I waited and watched autotrader and after a week I saw a dealer post up one for 31K about 800 miles away. I called and was quickly able to negotiate a deal for 29K out the door, tax included. So I got that car for less than 28K. I called up a few local dealers that I had went in to visit and asked them to match that price plus $500 (about what it was going to cost for air/hotel/fuel/food to go get the other car). They said they couldn't get within 5000 much less 500. They told me it had to be a scam, that it was impossible, that the model must be listed wrong, that no dealer would sell me that car for that price. I told them I had a signed purchase order and the vin was correct. The refused to believe. I paid a deposit on the car that afternoon and flew in to get it that weekend.
This advice applies to all major mfrs. Car dealers these days are making a lot of money from mfr to dealer incentives that revolve around customer satisfaction and sales quotas. If you can find a dealer close to meeting the sales quotas then you have found a dealer that is willing to sell you a car at 20% off. They can easily make up the money and then some by hitting a sales quota that gives a huge kickback to the dealer.
Most people do pay a few percent over invoice. Ask yourself what business on this planet makes any money selling a product for 2% profit. NONE. Car dealers have high overhead to make the situation even worse. There is only one conclusion. Car dealers pay much less than the "dealer invoice" price and the holdbacks. They have unadvertised incentives from mfrs that lowers their per car price to well below the "dealer invoice".
Quote:
Originally Posted by jaypee
Where are you pulling these numbers from?
I don't think "invoice" means what you think it means.
I meant MSRP in my original post but you can still get the price down well below the "dealer invoice" price.
I am looking for a new Toyota. I haven't heard of any Toyota dealer that will discount 20% off invoice.
We bought a Camry a few years ago. I got pre-approved, emailed about 12 of the nearest dealers with the exact model and trim information. The quotes back were all over the place, I then emailed the lowest 8 and told them what the lowest quote was and said I had money in my pocket if they wanted to make the sale today make me a better offer. 6 came back and said they could not match that price. That left 2, I went back and forth a bit, and ended up at about 5 grand below sticker. The dealer prepared the paperwork, we walked in and had the keys in about 15 minutes.
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