Negotiating a used truck price at a dealership

[Weitz]

Originally Posted by Canehdianman

They don't.

But it isn't a deal anyways, they just factor the interest into the price.

Sure to the untrained.

[Derek Sutton]

Originally Posted by Strange Brew

I love haggling on cars. Just remember not to get locked into wanting one particular vehicle too badly. If you haven't got up to leave at least once, you are not trying hard enough! Don't be afraid to leave without a deal and let them call you back in a day or two.

That's all fine and good and big decisions should be well thought out but don't sacrifice what you (OP) wants in order to "pay the least amount possible". A good deal is getting the vehicle YOU WANT at a price you can afford from somewhere that'll take care of you. It sounds like for whatever reason he wants the Nissan Fronteir, which btw hold their value really well. If that's what he wants, paying less on something else not as nice or with fewer options or has more km's is not a good deal.

I cant count the number of times people come in wanting to trade off their Dodge Journey or Ford Escape they've only had for a year or two because they've outgrown it but bought it because they "got such a good deal they couldn't turn it down". Well guess what, you should have paid more a year or two ago on someth bigger and you'd be much further ahead then you are now on your "good deal" POS that doesn't fit your family.

[jayswin]

Originally Posted by Weitz

Sure to the untrained.

You're trained in vehicle purchasing?

[Derek Sutton]

Originally Posted by Weitz

These days I would probably shop based on 0% financing. But I don't know if they offer that on used vehicles.

Originally Posted by Canehdianman

They don't.

But it isn't a deal anyways, they just factor the interest into the price.

Originally Posted by Weitz

Sure to the untrained.

0% financing (or any subvented rate) is only available on new models, the manufacturer essentially pays the banks to give the subvented rates. Typically there is a better price for a cash purchase on new vehicles (in the form of dealer rebate which is passed on to the customer) because the 0% financing (and incurred manufacturers cost) is not necessary.

0% or any subvented rate is helpful if you are trading in a vehicle which you have a lot of in equity in. Not only that but interest rates on used vehicles are well, you have to have pretty decent credit to get much under 5.49%.

[Swarly]

Originally Posted by 2Stonedbirds

I would suggest, if looking for the best deal, to sell your vehicle privately/elsewhere and coming back to the dealer that has the vehicle you want with cash in hand. "Cash is king". You will have the most bargaining power with cash, you essentially will have none with a trade in. They are not going to want to turn away a fist full of cash; blue book and a saturated used market means they can look for the best price on your trade in however.

Just my two cents.

Not even close to true anymore. I sold cars/trucks for a brief stint and know people in the industry for years. Anytime someone would end a lowball offer with "... in cash", I'd just chuckle to myself. Might still work at dirt lots or something but dealerships don't care.

In fact, the opposite is true, if you have the cash to pay it outright and you were to negotiate a price on the truck, then tell them you would be willing to finance if the price were lower, boom, you'll get a lower price. They will take a small hit on the front end profit of the vehicle but they get paid by the banks for bringing in that financing (sales guys usually get an extra 'spiff' of maybe $50-100 depending on the dealership for selling a finance vehicle vs cash). Just make sure its an open finance deal or whatever its called and pay it off in full 3 months later. I know a handful of relatives and friends who have done this and usually get another $500-1000 off the price.

[Canehdianman]

Originally Posted by Swarly

Not even close to true anymore. I sold cars/trucks for a brief stint and know people in the industry for years. Anytime someone would end a lowball offer with "... in cash", I'd just chuckle to myself. Might still work at dirt lots or something but dealerships don't care.

In fact, the opposite is true, if you have the cash to pay it outright and you were to negotiate a price on the truck, then tell them you would be willing to finance if the price were lower, boom, you'll get a lower price. They will take a small hit on the front end profit of the vehicle but they get paid by the banks for bringing in that financing (sales guys usually get an extra 'spiff' of maybe $50-100 depending on the dealership for selling a finance vehicle vs cash). Just make sure its an open finance deal or whatever its called and pay it off in full 3 months later. I know a handful of relatives and friends who have done this and usually get another $500-1000 off the price.

All vehicle loans in Alberta have to be open.

[GP_Matt]

My last purchase was a new truck and I was given a discount at the very end if I agreed to finance.
Oddly, they didn't care how much I financed so I paid cash for 75% of the purchase, financed the remainder for a month and then paid it off.

[chubeyr1]

You will always lose big time trading in your vehicle.

I have seen stealerships write down on paper the owner was getting $8000 for a $2000 car. Sounds like a win, it isn't.

If you ever trade a vehicle in expect to pay at least $5000 to much.

Your deal may look great on paper. Yet that is the only place it will look great on.

Sell your vehicle privately then buy a new one with cash. When you trade a vehicle in you get pennies on the dollar!

Buddy of mine was buying a new truck recently. I was with him for support. I told the guy don't do it! He wanted what he wanted.

I literally sat in the salesman office, demanding that the truck has air conditioning, Undercoating, premium sound system etc etc etc. Sales man caved to every demand with ease. He was making so much money off this deal he did not care.

I had enough. Time to go for a smoke. My stupid friend had really pissed me off. Never the less I got him a lot more than he had hoped for.

Deal is done? I ask my buddy what color is your new truck? He has no idea!

The salesman loved him! Also loved the fact he traded in a 10,000 car for about $3500.

I have a young nephew that is a car guy. Bought his first car from a family member that works at a stealership. Then his first job was at that stealership. I could not of hoped for a better education. He paid $5000 for a car he could of bought for $1000.

Buying a new car or truck? Do it with cash. Research the price before hand. Buying a 30,000 truck for 40,000 as the stealership gives you 8000 for your trade in is not a win.

[Northendzone]

^ seems surprising that the above scenario could play out, as you can start your vehicle shopping on the internet, and when you do, you will see that most dealers are priced pretty closely for similar vehicles.

I know I was looking at some used 2017 Ford explorers and for a reasonably equipped unit with about 15,000 or so km’s the price was around $43,000at a few different dealerships

[greyshep]

Originally Posted by chubeyr1

You will always lose big time trading in your vehicle.

I have seen stealerships write down on paper the owner was getting $8000 for a $2000 car. Sounds like a win, it isn't.

If you ever trade a vehicle in expect to pay at least $5000 to much.

Your deal may look great on paper. Yet that is the only place it will look great on.

Sell your vehicle privately then buy a new one with cash. When you trade a vehicle in you get pennies on the dollar!

Buddy of mine was buying a new truck recently. I was with him for support. I told the guy don't do it! He wanted what he wanted.

I literally sat in the salesman office, demanding that the truck has air conditioning, Undercoating, premium sound system etc etc etc. Sales man caved to every demand with ease. He was making so much money off this deal he did not care.

I had enough. Time to go for a smoke. My stupid friend had really pissed me off. Never the less I got him a lot more than he had hoped for.

Deal is done? I ask my buddy what color is your new truck? He has no idea!

The salesman loved him! Also loved the fact he traded in a 10,000 car for about $3500.

I have a young nephew that is a car guy. Bought his first car from a family member that works at a stealership. Then his first job was at that stealership. I could not of hoped for a better education. He paid $5000 for a car he could of bought for $1000.

Buying a new car or truck? Do it with cash. Research the price before hand. Buying a 30,000 truck for 40,000 as the stealership gives you 8000 for your trade in is not a win.

Agreed with the trade in scam. Cant agree with the pay in cash comment though, this will not likely result in a better deal.

How bout this...sell your old car privately, then buy your new one for the best negotiated deal you can get but have the funds available to pay off any financing deals you might need to sign up for in order to get the best price.

[llwhiteoutll]

Originally Posted by GP_Matt

My last purchase was a new truck and I was given a discount at the very end if I agreed to finance.
Oddly, they didn't care how much I financed so I paid cash for 75% of the purchase, financed the remainder for a month and then paid it off.

Old comment I know, but who gave you an open car loan that you were allowed to pay off after a month?

[Canehdianman]

Originally Posted by llwhiteoutll

Old comment I know, but who gave you an open car loan that you were allowed to pay off after a month?

Any loan from any dealership in Alberta. All car loans in Alberta have to be open, with no penalty for early repayment.

[Calgary14]

If I’m reading that correctly it’s actually better to finance a vehicle then pay it off almost immediately. The dealer would have an incentive (commission?) to provide financing and would be more likely to give a better price if financed - am I right?

[Derek Sutton]

Originally Posted by Calgary14

If I’m reading that correctly it’s actually better to finance a vehicle then pay it off almost immediately. The dealer would have an incentive (commission?) to provide financing and would be more likely to give a better price if financed - am I right?

Things are being skewed here between new and used purchases. On a used car the dealers prefer you finance, negotiate the best price you can and leave it open as to if you are financing or not.

On the new side, there are always cash purchase rebates which will make your cash purchase price less then a subvented (0%/ .9%/ 1.49% etc..) finance purchase. Buying new and used are quite a bit different in terms of cost and savings.

Dealers can also grossly inflate the trade values buy burrying them in undisclosed factory rebates on new vehicles. Working at a full disclosure dealership, this really comes back to bite us. "Ford is giving me more for my trade". Yeah because they are not telling you about the $3500 rebate from Ford Canada but are simply adding $2000 to your trade, guess what, you are missing out on $1500 even though they "are giving you more for your trade". There's the ACV (Actual Cash Value) of your trade and there is what they are showing you for your trade, these numbers can be twisted and turned every which way to close a deal.

[gasman]

Originally Posted by chubeyr1

You will always lose big time trading in your vehicle.

...
Buddy of mine was buying a new truck recently. I was with him for support. I told the guy don't do it! He wanted what he wanted.

I literally sat in the salesman office, demanding that the truck has air conditioning, Undercoating, premium sound system etc etc etc. Sales man caved to every demand with ease. He was making so much money off this deal he did not care...

So you were negotiating on a specific truck as your friend "wants what he wants" and you, being a master negotiator, got the dealer to add in air conditioning and a premium sound system.... and undercoating.

First of all other than the undercoating, air conditioning and premium sound aren't unusually dealer options, they are specific to the trim level of the vehicle you are buying.

Not to be offensive, but based on your tirade, I would suspect that you have never bought a car before, let alone be getting the dealership to add in all these extras.

Trading in is a reasonable thing to do. I have traded in a couple of vehicles, and while I may not have gotten what I would have privately I also didn't have to go through the hassle of selling a vehicle, taking people for test drives, answering 8 million - "I'm interested do you still have this" Kijiji replies, etc.

The key is to negotiate the price of your new vehicle separate from the trade in. then negotiate the price of the trade in. For new vehicles I am a big proponent of resources such as Carcostcanada, which will help educate you on all of the dealer costs and rebates that are available.

[White Out 403]

^^ maybe the dealer upgraded the trim no charge?

but.. ya.. that also read weird to me.

[Derek Sutton]

Originally Posted by Resurrection

^^ maybe the dealer upgraded the trim no charge?

but.. ya.. that also read weird to me.

Would have had to search hi and low to find a truck WITHOUT air conditioning.

[ClubFlames]

Negotiated all the extras for his buddy. Master manipulator tactics used. Forgets himself to ask about the color of the truck. Blames it on friend. Pissed off. Goes for smoke.

Interesting.

[Weitz]

Is this the '90s?

There are still trucks without air conditioning?

[Sliver]

That advice was certainly from the 90s. Right down to 'having a smoke' to calm down.