First-time New Car Buyer...what do I negotiate?

[DownhillGoat]

Bump!

Currently looking for a new truck. Went into the dealership yesterday with intentions of just pricing stuff out, and got the "We can only source a few with the options you want.." So after being pressured a bit, took a test drive, left a refundable deposit to hold the one I was looking at.

So after getting home I did the carcostcanada thing and found I'm about 12% over wholesale (if my math is right. Is it too late to negotiate price? I realize that it's not too late to pull out of the deal, just wondering if its a slimy move. (I'm generally happy with the dealership).

[3 Justin 3]

Originally Posted by kunkstyle

Bump!

Currently looking for a new truck. Went into the dealership yesterday with intentions of just pricing stuff out, and got the "We can only source a few with the options you want.." So after being pressured a bit, took a test drive, left a refundable deposit to hold the one I was looking at.

So after getting home I did the carcostcanada thing and found I'm about 12% over wholesale (if my math is right. Is it too late to negotiate price? I realize that it's not too late to pull out of the deal, just wondering if its a slimy move. (I'm generally happy with the dealership).

Why would it be a slimy move? In the end of the day you should be looking at your best interest (saving money, getting more options, etc.). I wouldn't say "rip the dealer as best as possible", but get the best deal you can. From what I've learned (though never using this advice to buy a car) if there is no deal to be had, just walk away. Take the deposit and walk. This puts all the chips in your hands and if they want that sale they will come to you with a better offer.

[Sopure]

Originally Posted by kunkstyle

Bump!

Currently looking for a new truck. Went into the dealership yesterday with intentions of just pricing stuff out, and got the "We can only source a few with the options you want.." So after being pressured a bit, took a test drive, left a refundable deposit to hold the one I was looking at.

So after getting home I did the carcostcanada thing and found I'm about 12% over wholesale (if my math is right. Is it too late to negotiate price? I realize that it's not too late to pull out of the deal, just wondering if its a slimy move. (I'm generally happy with the dealership).

Negotiating is all leverage. If you know exactly what you want, and the dealer has it in-stock, you'll generally have more leverage when tabling your deal. You'll be giving the Sales Consultant all the power to negotiate with his Floor Manager or Sales Manager to reach the point where you're happy and the dealer with the truck is happy.

I'm in the industry myself, also in Sales, and I've won a few CMDA and MDA awards, and I'm always happy to help someone from CP by answering any questions.

Are you paying cash or financing? Has he discussed rebates, subvented APR's or stackable cash/incentives? Most top performers will sit down with you and build you a 'toolbox' or a plan of attack to maximize your money. If he's just the 'make me an offer' type or the 'here's the price' type, he's not working for you.

[VO #23]

What sort of things are negotiable, beyond cost of the vehicle itself? I'm going to be purchasing a new Ford in the very near future using their Employee Pricing Promotion and have been told by someone in the know that this is the lowest price they'll go to. What other goodies should I be looking to go after in the negotiations?

[DownhillGoat]

Originally Posted by Sopure

Negotiating is all leverage. If you know exactly what you want, and the dealer has it in-stock, you'll generally have more leverage when tabling your deal. You'll be giving the Sales Consultant all the power to negotiate with his Floor Manager or Sales Manager to reach the point where you're happy and the dealer with the truck is happy.

I'm in the industry myself, also in Sales, and I've won a few CMDA and MDA awards, and I'm always happy to help someone from CP by answering any questions.

Are you paying cash or financing? Has he discussed rebates, subvented APR's or stackable cash/incentives? Most top performers will sit down with you and build you a 'toolbox' or a plan of attack to maximize your money. If he's just the 'make me an offer' type or the 'here's the price' type, he's not working for you.

- He's sourcing it from another dealer
- Financing
- He didn't go into the deals of the rebates, but there was $7500 in rebates (matches what the brand website has online for offers as well)
- There's a trade-in involved as well
- It was a pretty much, "here's the price" type of sale.

(just went thru the paperwork they gave me and they neglected to include my deposit receipt )

[Sopure]

If your friend says they're tapped out, and they know your entire purchase from tip to tail, it's tricky to get more-- because any of those 'perks' are accrued to the transaction itself and are paid for from commissionable gross.

Sometimes if you promise them a perfect Customer Satisfaction Survey-- just phrase it as "I can knock the CSI out of the park for you... if you.."

"...can help me get a good-guy deal on any accessories going forward."
"...can get me your cost on protection items, or a warranty.."
"...throw in some jackets or hats."
"...take care of my first regular service (typically an A-Service and some dealers will have a program set up for their Sales Departments as a nice touch for preferred clients or use it as leverage to close a deal up)."

Good negotiators will always offer something up and then ask something in return. I see so many people coming into the dealership, and all they do is Google "How to buy a car" and have the 'gimme gimme' attitude. It works to an extent, but there's far more effective ways to get what you want and more of it.

Buying a car or truck is very situational. It depends on the store, the personnel, what you're dealing on, how you're paying, are you trading in or just dealing with no trade, conditions of sale, delivery time, sponsored programs from the manufacturer, your physical proximity to the dealership itself, etc, etc.

[Sopure]

We maybe should take this to PM if you'd like to ask more questions or are disclosing terms of your deal, etc, but for now, whichever!

Originally Posted by kunkstyle

- He's sourcing it from another dealer

This always adds a little flavour to the deal, because it's not lot-ready and ready for sale. Dealers are paying interest to floor their inventory and sometimes you can use the days in stock (if you can obtain that information) from the Sales Consultant. How far away is the vehicle? Is it local? Will they tell you that? What are they having to pay to freight that vehicle to their store for delivery (over and above Freight and PDI charge).

Financing

What lender is he using? If you're dealing on a Ford, let's say, are you financing it through Ford Credit or a bank like TD? This is very important and affects your deal going forward in a massive way.

- He didn't go into the deals of the rebates, but there was $7500 in rebates (matches what the brand website has online for offers as well)

Sounds about right for some of the truck Cash Incentives I've seen out there lately. Generally speaking there aren't many SC's that will lie about how big the rebate is, because it can get them into super hot water and has to be disclosed later on down the line.

- There's a trade-in involved as well

This is equally important as what lender you're using. Trades are always the most fluid concept in a car deal. PM me your trade information vs. what they're showing you, and I can try to help out. Whenever there's a trade in a car deal, I find the majority of the population can't 'keep up' with how the deal is being structured. Do you know the Actual Cash Value (ACV) of your car vs. what the dealer is showing you for a trade value?

- It was a pretty much, "here's the price" type of sale.

Depends on the kind of Sales Consultant you're dealing with, but it sounds like it's not terribly tailor-made to you personally. *shrug* But again, who am I to say?

P.S. Nothing makes me happier than seeing someone come in with Car Cost Canada. It cuts out all the bull####, lack of trust, and the old-school poker game mentality. I've actually given people beyond a fair shake, have them second guess the whole thing (which is understandable, you're not buying a toaster here..), and sent them to spend the $60 or whatever just to validate everything I'd said.

[DownhillGoat]

wrong thread

[Table 5]

Geez, I hope you're not trading in the 996 for a truck.

[DownhillGoat]

Good lord no. If anything that's getting traded for a 996TT. Or a 997
Although with the new bike and the 4" rock that shattered the windshield on the 996, it's not seeing many miles...