I'm a car salesmen, Go ahead and ask me anything

[picard]

Hey Tim, I'm looking at an 07 Rav4 Ltd 4 Cyl with 39000km on it. The dealership has this listed at $32400. Realistically what could I get them to move to? A new 08 is $33200 and these now have a $1000 rebate.

I have an 02 PT Cruiser Base, Manual with Power Package with 89000kms what could I realistically expect for a trade and for private?

Cheers

[TimSJ]

you should be able to get a whole lot better deal than that in my opinion. imho You should be paying in the $28-$29range for that car.

Your PT cruiser is a $4-$5k car

[picard]

Thanks Tim,

Sort of what I expected. Is that figure for my PT a trade in price or Private Sale? It is in good condition but has a scratch/dent in the lift gate where the garage door came down on it. I can't think it would be worth fixing?

[TimSJ]

That is a trade in number.. you are right porb not worth fixing the dent.. they will prob try and knock $500 off of the trade price for the dent but you can likely beat them down a bit.

[MoneyGuy]

Tim,

My daughter wants to buy her dream car, a Mazda 3. Can you tell me what she can offer for this car that wshould be accepted:? Here are the specs.

Mazda3 GS:
GS package contains all of these: air conditioning, 15" alloy wheels, cruise control, power package and whole lot of other stuff such as remote keyless entry, front-sensing wipers, etc. etc. There are no extras over and above the GS package. It's auto tranmission and four doors. Engine is EFI, 2.0 L, four cylinders, 1,999 c.c.

The dealer has it listed for $23,000 and there is a $500 discount because she's a recent university grad and also a $500 Christmas discount.

What would be a reasonable price for this car, Tim. Many thanks.

[TimSJ]

Is the car an 07 or an 08? Mazda also has on low rate leasing and financing so i would take advantage of there rates as well. The 3 is a fairly high demad car so it may be a bit hard to get any better that the graduate program and the xmas discount but the manufactures is paying for those programs and not the dealer.. Maybe try for another 3% or so.. typicall the gross the dealer makes is in the 8-10% range making 5% is not unreasonable.

I have a great Mazda 3 here right now if she wanted a used one. http://www.tristarmercedes.ca/browse...age=&x=53&y=16 figure on about $1500 shipping out west. so you can likely should be able to find the same thing for the same money in Calgary.

[MoneyGuy]

Originally Posted by TimSJ

Is the car an 07 or an 08? Mazda also has on low rate leasing and financing so i would take advantage of there rates as well. The 3 is a fairly high demad car so it may be a bit hard to get any better that the graduate program and the xmas discount but the manufactures is paying for those programs and not the dealer.. Maybe try for another 3% or so.. typicall the gross the dealer makes is in the 8-10% range making 5% is not unreasonable.

I have a great Mazda 3 here right now if she wanted a used one. http://www.tristarmercedes.ca/browse...age=&x=53&y=16 figure on about $1500 shipping out west. so you can likely should be able to find the same thing for the same money in Calgary.

It's a 2008. Shye says they still have some '07s available but don't give the two $500 discounts on those. She's not in Calgary - in Edmonton. I'll mention the used Mazda 3 to her, though.

About those deals on financing, at some time I'd like to ask you about those, because I tell my clients that they're not free money. I'd like to ask you how they work and such, but not now.

So, 3% on 23K is $690. Are you saying that if I go in with her and we offer $690 less, then that would be a reasonable thing to do? I guess that it's probably 3% on 22k because of the 1K in discounts, therefore offer 3% less on 22K, which is $660. Would that be reasonable?

[TimSJ]

I would go in an offer $1000 less and see where you get.. It never hurts to ask.. It is the end of the year and everyone is trying to make there targets. I might wait a few days as well until the November sales numbers come out. If they all had crappy novembers there might be some really agressive programs on for December to again make those year end targets.

[TimSJ]

Price drop on MSRP's from Audi Today...

A3 2.0T - $1,500 (no incentives)
A3 3.2- $2,000 (no incentives)
A4 2.0T Cab FWD - $2,450 (plus another $2,000 in incentives)
A4 2.0T Cab quattro - $2,450 (plus another $2,000 in incentives)
A4 3.2 Cab quattro - $2,850 (plus another $2,000 in incentives)
S4 4.2 Cab - $4,600 (plus another $4,000 incentives)
RS4 – No price reduction but $12,000 in incentives
A6 3.2 Sedan Quattro - $3,700 (plus another $2,000 in incentives)
A6 4.2 Sedan Quattro - $3,700 (plus another $2,000 in incentives)
S6 5.2 Sedan Quattro - $5,000 (plus another $4,000 in incentives)
A6 3.2 Avant quattro - $3,700 (plus another $2,000 in incentives)
A8 4.2 - $5,000 (plus another $2,000 in incentives)
A8L 4.2 - $5,000 (plus another $2,000 in incentives)
A8LW12 - $5,000 (plus another $4,000 in incentives)
S8 - $5,000 (plus another $4,000 in incentives)
Q7 3.6 Premium - $2,000 (plus another $2,000 in incentives)
Q7 4.2 Premium- $2,500 (plus another $2,000 in incentives)
TT Coupe 2.0T FWD - $3,700 (plus another $2,000 in incentives)
TT Coupe 3.2 quattro - $4,100 (plus another $2,000 in incentives)
TT Roadster 2.0T FWD - $3,700 (plus another $2,000 in incentives)
TT Roadster 3.2 quattro- $4,100 (plus another $2,000 in incentives)

[MoneyGuy]

Originally Posted by TimSJ

I would go in an offer $1000 less and see where you get.. It never hurts to ask.. It is the end of the year and everyone is trying to make there targets. I might wait a few days as well until the November sales numbers come out. If they all had crappy novembers there might be some really agressive programs on for December to again make those year end targets.

Less than what? Offered price is 22,000 (23K minus $1,000 in discounts).

Is it 22,000 - 660 (3% you suggested) - $1,000 = 20,340?
Or is it merely $22,000 - $1,000 = $21,000.

Tim, if you need clarity on this I'd be happy to phone you if want to PM me a number and the best time. Many thanks.

Oh, BTW, she has the money to pay cash. Her dad is a financial planner.

[TimSJ]

I would go for an extra $1000 on top of the $1000 already offered in rebates.. If paying cash i would also ask if there is any rebate in lieu of the low financing rates. There is money coming from somewhere to pay for the subvented rates

[MoneyGuy]

Originally Posted by TimSJ

I would go for an extra $1000 on top of the $1000 already offered in rebates.. If paying cash i would also ask if there is any rebate in lieu of the low financing rates. There is money coming from somewhere to pay for the subvented rates

Okay, so then 23K - 1K in rebates - extra 1K = 21K, right.

Regarding asking for more because she has cash, I figure we'd get an answer, "No, sorry, can't do that." I don't know how to handle that as I'm not a haggler, which is why this info is helpful because then I know what I can get away with and it's not an offer-counter offer-counter counter offer sort of thing. Should there be more off the price net of the 1,000 negotiated down already?

And, if our offer is not accepted, do I (we) just head for the door if the answer is no? I don't mind doing this, knowing that he might call us back. If he doesn't, I figure wait a couple of days and then call him and give a slightly higher offer. However, I think if you do that once, you've lost some bargaining power because he then knows that you're willing to come up in price from a take-it-or-leave-it offer.

I'm almost finished with the questions. Thanks for the patience.

Wayne

p.s. This is a '08. I assume that if she decides to buy a '07 the same bargaining can be used, although the dealer says the 1K in rebate don't apply to a '07.

Edit: Does all of this mean that she should sell her trade in privately, or if she works it into the deal will she get way less than it's worth as they make up the difference we've negotiated them down?

[MoneyGuy]

Last time.

My daughter and I will be going car shopping this weekend. This is my plan based on your advice.

Sticker price is 23K so minus the 1K in rebate, I'll offer 21,000 and we can pay cash. Is this the reasonable price or should we go a bit more or less? She prefers to sell her current car privately sop there is no trade.

You mentioned asking about a cash discount in lieu of the low financing rates. What should we expect to get off the price?

My daughter is appreciative. Thanks.

Wayne

[Radio]

Is now a good time to try and sell a car privately or should a guy wait till the new year?

We have a 2006 Pathfinder SE and would like to sell it and get either a City Jetta or a TDI.

Also, what would be a fair asking price? It has ~13K in KM

[TimSJ]

Wayne,

I would say you are on the right track.. Doesn't hurt to ask for lots. all they can say is no..

What i meant as far as the discount in lieu of rates was sometimes they will offer either the $X or X%.. for example on the new MB C-Class right now we are offering 6.9% lease or if you are a cash buyer we can give you $1000 rebate. They may or may not have something like that but it doesn't hurt to ask.

Also don't take the life insurance, Disability insurance, Paint Protection, Etching etc.. it is all a crock that we make huge $$$ on

Don't hesitate to ask if you have any other questions.

[TimSJ]

Originally Posted by Radio

Is now a good time to try and sell a car privately or should a guy wait till the new year?

We have a 2006 Pathfinder SE and would like to sell it and get either a City Jetta or a TDI.

Also, what would be a fair asking price? It has ~13K in KM

Don't think it really matters too much.. As I say there is an ass for every seat.

As for what it is worth i can buy 2006 SE's in the US for $22k wholesale so that is what you are up against..

[Cowperson]

What is the honest, anonymous answer, from within your industry, to the following:

"What percentage of new car buyers get the full value of their investment in extended warranties returned to them in necessary repairs?"

To wit: If someone spends $2300 on an extended warranty at the point of purchase, do they actually save that much on necessary repairs for the time such a warranty would be in effect?

Just curious.

Cowperson

[burn_baby_burn]

Tim, my wife and I are looking to buy a Minivan. We have it narrowed down to a Toyota Sienna or a Dodge Grand Caravan. We have talked to a few dealers in the US. Which means either a new Caravan or a used Sienna since 2008 Toyotas can not come north into Canada. How much below listed price should we be offering? I could offer fairly low but I would like to be realistic to get a good counter offer.

[TimSJ]

Originally Posted by Cowperson

What is the honest, anonymous answer, from within your industry, to the following:

"What percentage of new car buyers get the full value of their investment in extended warranties returned to them in necessary repairs?"

To wit: If someone spends $2300 on an extended warranty at the point of purchase, do they actually save that much on necessary repairs for the time such a warranty would be in effect?

Just curious.

Cowperson

Depends on the car i think Cow... If it is a highend car with lots of electronics i think that lots get the full value. Personally i wouldn't own a High End car MB, Lexus, BMW, Audi out of warranty.. One computer goes kaput and you are into big bucks..

Now on a lower end car. where they are easier to fix cheaper parts etc.. maybe not so worth it.

The one thing that people need to look out for is if you are buying an extended warranty make sure that it is from a reputable company. Some of the aftermarket warranty companies are shadey as hell..

[MoneyGuy]

Originally Posted by TimSJ

Wayne,

I would say you are on the right track.. Doesn't hurt to ask for lots. all they can say is no..

What i meant as far as the discount in lieu of rates was sometimes they will offer either the $X or X%.. for example on the new MB C-Class right now we are offering 6.9% lease or if you are a cash buyer we can give you $1000 rebate. They may or may not have something like that but it doesn't hurt to ask.

Also don't take the life insurance, Disability insurance, Paint Protection, Etching etc.. it is all a crock that we make huge $$$ on

Don't hesitate to ask if you have any other questions.

Hey, I'm in that business. I know not to take the insurance crap. I can't tell you how many times I've convinced folks not to take mortgage insurance from the banks.

Thanks for all the advice. If you'r ever in Edmonton, I'd be happy to buy you a lunch or dinner.