phineasboggs

I'm at a loss how to negotiate. I found cars I liked, and they were asking about $21,500. I told the salesguy I needed to get out the door for $20,000 and he came back saying that the internet price was as low as he could go -- plus all the other charges up to about $24,000.

I left, and they didn't stop me!

Documentary $800
Taxes $1400

The NADA forms have Clean Retail as $24,424 and
Clean Loan $18,850. I don't understand this!

So, should I go back and accept their price as unnegotiable? Where do I go from here?

Thanks.

Carbon2008RDX

Are you looking to finance or pay cash? The last three cars I bought were new and I paid cash in full at singing. It gives one a better bargaining chip as the dealer gets all their $ upfront.

eilros

We just bought a 2007 Tech with 54K miles for $20,750 on Memorial Day. It had been sitting on the lot since March 3rd and was originally priced at $25,991. It was reduced to $21,900 as one of their "internet specials". We originally offered $20,000 before agreeing on $20,750 (before taxes, fees, etc).

phineasboggs

I finally decided to pay cash, which makes it a little less negotiable. I told them what I wanted OTD, and they didn't budge. I think I should have countered with a different price but asked if they could go any lower and they said no. And I walked. Salesman called to see if I was ready to take them up on their excellent price.

phineasboggs

Ah, there's the rub. The dealer here says they can't go any lower than the internet special price.

wrestrepo

Show them comparable, as you would do with houses...If there are similar cars for sale for less show them the listings....Carmax is the only place I have heard don't do anything less than asking

portwashguy

I've always heard the opposite- that the dealer prefers financing because not only do they get all of their money up front, the financing bank pays them a commission.

ikkoku

paying doc on a used car? is that normal?

ultimately, it's a game of who wants it more... do you keep your stance and wait/look for another or will the dealer come down if desperate enough.

I'd say get the right car within your original budget. They're bound to come up sooner or later

phineasboggs

Actually, they're being coy. Not responding directly. Giving me a sort of runaround. I asked specific questions about the tech car and tires, and they responded that it was a certified car. I would have gone down yesterday to buy (and haggle over that crazy $800 documentary charge -- ridiculous according to Edmunds).

There are plenty of others around. I'm looking at other dealers today, and now, I'm even considering Lexus.

BTW, I'm a middle-aged female, and I think that persuades them to D*** with me more. So, they'll lose a sale.

eilros

A doc fee of $800 does seem quite high. I just checked the paperwork from my purchase and the doc fee was $160. The only other fee I got hit with was a $35 title fee.

wrestrepo

Go to Carmax and see how they treat you there....seriously...

phineasboggs

I bought from a different dealer. One who seemed more trustworthy. hahaha oxymoron.

black label

Other than the Doc fee, don't blame the dealer. Titling fees, sales tax, registration costs are out of their control. That said, and $800 doc fee thats a little out of control but I'm not sure what the norm for a doc fee is in your area.

R*D*X*

Remeber.... It's more harder for them to sell a car than for you to buy a car..... there are too many cars out there for sale but not too many buyers!!!

phineasboggs

Thanks guys. I'm a happy camper. I was quite happy with the new deaer -- the one I bought from, Crown Acura in Clearwater, FL. I think they treated me right.

Stylinhonda

Looking as well. How much did you get the 07 for with 23k miles?

phineasboggs

Larry Skeens at Clearwater, FL Acura was great. It was over $25 but I forget exactly what.

mav238

Tell me this is for a used RDX right?

Because I am thinking of purchasing a 2010 Honda Fit sport for $19000 out the door.

black label

Was the cash that you paid Euros? Assuming your cash was US currency (which is the same currency the banks use) that wouldn't change your price.

You might get a better price if you said you would finance the car.

You're on the right track. Just like the loan officer at the bank, the dealer buys the money at one rate (lets say 3.5%) then they sell you the money at a higher rate (lets say 4.5%). The dealership gets to keep that extra point as profit (just like the loan officer at the bank did).

The dealer would much rather sell you the car at 20,000 if you were financing as they will make up some of the profit in the financing. When you tell them you are going to pay cash, you give them much less incentive to discount the car.

The real trick is to find uot whether you can pay off the loan early without any prepayment penalty and just be paying off the principal. If you can then you should always say you will finance so you can get the best price, then pay the vehicle off when you get your 1st statement so you don't pay interest. As a side note, if you do it this way, the bank typically charges back the dealer on the reserve (the money the dealer made from the financing).

Through all this out the window when dealing with a subsidized rate from the manufacturer. In these cases, the dealer gets paid a flat commission which is absolutley miniscule compared to the reserve.

phineasboggs

Dear Black Label: Thanks for your insights and information. I agree with everything you say with what sounds like expertise and experieince.

And, all that is moot now. I bought and financed a low mileage RDX from a different dealer who was willing to negotiate a little. I'm happy, because had salesman in Sarasota negotiated with me (btw, I didn't tell him how I planned to pay.) I would be the proud owner of a nice RDX with high mileage.

In the old days, it was better to pay in cash, as in TOD, it was good to have no debt. Nowadays, if you don't buy on credit your credit will suck. So your points are well received.

I'm happy to report that I took a loan with no prepayment. It seems smarter to pay off in cheaper dollars, just like my mortgage, and maybe refinance elsewhere or payoff.

Thanks mucho.