Advice with Dealers/Sales
02-05-2010, 07:17 AM
#121
The problem I have with your methodology is that you never know if you have received their best price. You have no way of knowing if Acura has just offered a dealer incentive that morning for an additional $1500.
I'm with you as far as deciding how much I want to pay. But I always open up my first offer about $5,000 below that. Then, let the dance begin. I also have a pre-printed check partially visible so they can see part of it. I use the kind from a bank that lets you fill in the amount up to, say, $50,000.
I REFUSE to pay the unscrupulous "document fee" or "dealer fee". It is a totally bogus device to boost the dealer's profit after you have agreed on a price. It is unethical and even criminal in many states. Yes... it is pre-printed on the Order form. I cross it off. If they don't remove it, I walk.
Of course, the dealer will reject my offer. But, it puts them on the defensive and they then come back with an equally ridiculous counter-offer. Or perhaps they already opened the negotiation with a high price. That's called business. Negotiation. They try to get as much as possible and you try to pay as little as possible. You meet somewhere in between.
If they come up with a price of, say, $40,000 and I am prepared to buy at $37,000, I will make an offer of $34,000. In other words, I will low-ball them by the same amount they high-balled me. Ideally, after a few thrusts and parries, we will end up near the middle. I also move in small increments. Never more than $500 at a time. As we get real close, I will ask for concessions such as mud guards, trunk tray, etc. which cost them very little but has a high retail markup.
Bottom line: Until they reject my offer and I have gotten up to leave AND they are willing to let me walk out to shop their price at another dealer.... I don't know that I have their lowest price. And I always walk out.... even if it just to see if they will chase me down the driveway. If they let me go, I can be pretty sure they can't go lower.
A sharp salesman and a successful dealer will NOT let a live, qualified customer leave the lot until they have exhausted every effort to make a deal because they know that sooner or later you're going to run into a real salesman (an inside slogan).
I'm with you as far as deciding how much I want to pay. But I always open up my first offer about $5,000 below that. Then, let the dance begin. I also have a pre-printed check partially visible so they can see part of it. I use the kind from a bank that lets you fill in the amount up to, say, $50,000.
I REFUSE to pay the unscrupulous "document fee" or "dealer fee". It is a totally bogus device to boost the dealer's profit after you have agreed on a price. It is unethical and even criminal in many states. Yes... it is pre-printed on the Order form. I cross it off. If they don't remove it, I walk.
Of course, the dealer will reject my offer. But, it puts them on the defensive and they then come back with an equally ridiculous counter-offer. Or perhaps they already opened the negotiation with a high price. That's called business. Negotiation. They try to get as much as possible and you try to pay as little as possible. You meet somewhere in between.
If they come up with a price of, say, $40,000 and I am prepared to buy at $37,000, I will make an offer of $34,000. In other words, I will low-ball them by the same amount they high-balled me. Ideally, after a few thrusts and parries, we will end up near the middle. I also move in small increments. Never more than $500 at a time. As we get real close, I will ask for concessions such as mud guards, trunk tray, etc. which cost them very little but has a high retail markup.
Bottom line: Until they reject my offer and I have gotten up to leave AND they are willing to let me walk out to shop their price at another dealer.... I don't know that I have their lowest price. And I always walk out.... even if it just to see if they will chase me down the driveway. If they let me go, I can be pretty sure they can't go lower.
A sharp salesman and a successful dealer will NOT let a live, qualified customer leave the lot until they have exhausted every effort to make a deal because they know that sooner or later you're going to run into a real salesman (an inside slogan).
If you look at the numbers that are available at places like Edmunds, and check the dealer's stock situation (the more TLs, the better), you can get a pretty good idea what is or isn't a good offer to make. We know there's $2K in marketing cash going to the dealership. And, we know what invoice is. Dealership is going to make money, or they won't sell the car. I've yet to see an Acura dealer around my 'burg that will give up any of their holdback. They just won't do it. I've tried numerous times. May be different in other parts of the country, though.
Plus, if you have a trade, if the dealer finds that you're price sensitive on the purchase of the new car, they'll just go low on your trade to make up the difference. Only way to tell what the market is on your trade is to look in your local newspaper and see what your trade is offered for. Let's say that your trade is valued at $10K by the dealer. You look in the newspaper and see asking prices of $13K. Figuring some "wiggle room" on private party newspaper ads, the trade ends up selling for about $12K. You're trade should sell at the dealership for about that amount (even though they may put a price tag of $13K for your trade on their lot). They may offer you $9K on your trade to make up the difference of showing you a "great deal" on the purchase of the new car.
Personally, given the market around me (SW OH), somewhere in the neighborhood of invoice plus $500-$1,000 less the $2K in dealer incentives, should net me a deal. I've already had an offer of $500 over invoice less the $2K incentives rejected. No hard feelings. I'll readjust my offer and add about $200 and go shopping again. That should net a deal.
Doc fees are another dealer profit center. Some states put a cap on them (in OH it's $200). I've seen them as high as $600 when looking in neighboring states, though.
That's why I "pre-figure" my offer to include everything. If I'm trading (which I rarely do), I figure a fair price on my trade-in and subtract that from the offer I'll make on their new car. Then, I add in all of the licensing fees, taxes, and the doc fee (I never add in more than $100). I give the dealer that ONE price. They either accept it, or reject it. Shouldn't take more than 10 minutes.
That way, I know I'm getting a good deal. There's no "wiggle room" to add anything to the deal. And, I'm at the negotiating table just long enough to get a "yea" or "nay" on my deal.
Leases are sort of a different animal. You negotiate the price of your new car, feeling pretty good about the price you got. Then, you get to the F&I office only to find out that the finance company (be it Honda's own finance, or a 3rd party) adds acquisition fees on the front end, disposition fees on the back end, finance company lease inception fees, etc. All of a sudden, your deal doesn't look nearly as good. And, since the bank or Honda finance company fees are fixed by the lease holder, the dealership can't negotiate them, you're stuck with them.
Plenty of ways to skin a cat. That's the way I do mine. I get a good deal with minimum muss and fuss. You may have to visit more than one dealer to get them to accept your offer, but if it's anywhere close for them to make a little bit of money on the deal, you'll find someone who'll make the "skinny" deal. Plus, they're motivated to make a skinny deal if it doesn't take them nearly as long to do it.
If your offer is $5,000 under invoice, and $5,000 away from the price you would offer to begin with, you're either going to be at the negotiation table for a long, long time. Or, you're going to be bumped over and over again until you get to the price you were willing to pay to begin with (many times over it since you don't know what final price you're going to end up at).
02-05-2010, 08:41 PM
#122
Senior Moderator
Different Strokes
I've always felt, the longer you sit at the negotiation table, the more you're going to be "bumped".... [clip]
...If your offer is $5,000 under invoice, and $5,000 away from the price you would offer to begin with, you're either going to be at the negotiation table for a long, long time. Or, you're going to be bumped over and over again until you get to the price you were willing to pay to begin with (many times over it since you don't know what final price you're going to end up at).
...If your offer is $5,000 under invoice, and $5,000 away from the price you would offer to begin with, you're either going to be at the negotiation table for a long, long time. Or, you're going to be bumped over and over again until you get to the price you were willing to pay to begin with (many times over it since you don't know what final price you're going to end up at).
What you call "bumping", I call negotiating. And I see it from a different perspective. It is I who is bumping them; not vice-versa. You have to maintain control of the negotiations. I don't mind spending several hours getting the best price on a $40-50,000 purchase.
My technique is informed by my many years experience as a major brand auto/truck dealer (in the past). It works for me.
Last edited by Xpditor; 02-05-2010 at 08:43 PM.
02-06-2010, 09:14 AM
#123
If that works for you, then it works for you. I will just repeat: if I walk in with my final offer and they accept it..... I have no way of knowing if they would have gone lower (for a multitude of reasons -none of which may ever be known by me. I.e. overstocked, needing cash, change of ownership, hidden rebates and incentives, sales manager quitting tomorrow, sales manager high on drugs, etc. etc.)
What you call "bumping", I call negotiating. And I see it from a different perspective. It is I who is bumping them; not vice-versa. You have to maintain control of the negotiations. I don't mind spending several hours getting the best price on a $40-50,000 purchase.
My technique is informed by my many years experience as a major brand auto/truck dealer (in the past). It works for me.
What you call "bumping", I call negotiating. And I see it from a different perspective. It is I who is bumping them; not vice-versa. You have to maintain control of the negotiations. I don't mind spending several hours getting the best price on a $40-50,000 purchase.
My technique is informed by my many years experience as a major brand auto/truck dealer (in the past). It works for me.
I've negotiated a multitude of ways. I've probably either bought, or helped someone buy a car more times than I can remember. I used to follow in my late Father's footsteps (born out of a time when invoice, and incentives weren't readily available to the general public) that you had to sit at the negotiation table for hours on end to get a good deal. I practiced the way he taught for a long time, until more information was available to me.
Quick story.....my late Father was a notorious grinder. He'd spend hour upon hour grinding away to make a deal. Sometimes it would extend into days, fighting over a $100 here, or $150 there. Sometimes walking away from the table for as little as $50.
Several years ago, he and I were both in the market for a new truck. We actually wanted the same truck (F150) with the same options. Originally, we were going to try to see if we could get a better deal by buying two trucks at the same time, from the same dealer. He used to believe whole heartedly that his grinding was the "right" way to buy. On a whim, I bet him a dinner that I would try my way....he could do it his way, and that there wouldn't be $50 worth of difference between the two.
It was a Saturday. He went to one Ford dealer. I went to another. The night before, I pulled up all the numbers, incentives available, etc. I added TTL and a reasonable "doc fee" (IIRC, I added in $50 for doc at the time). I compiled all of those numbers and made my offer with the stipulation it was a one time offer. Within 10 minutes I had my deal. It took another hour for me to sign the paperwork, get the truck all shined up, and give them a check.
I drove the new truck to the dealership my Father was at....about 20-30 minutes away from the dealer I took delivery from. He was still doing the "go ask your manager if he'll do this", and the sales person coming back for another bump.
As I sat down next to my Father at the "desk", he asked me how I did. I showed him the paperwork, and he was still about $350 above my deal at the time. He showed my paperwork to the sales person and asked him if the manager would do the "same deal". He went to his sales manager, and came back with a "are you buying this truck right now if we do?". My Father's answer was "yes". Done deal.
I ate a nice meal on him after all was said and done.
From that point forward, whenever my Father went to buy a new vehicle, the first phone call he made was to me to compile the numbers for him for a "one time offer".
As you say, what works is what works for each individual.
02-06-2010, 02:49 PM
#124
Senior Moderator
For Graphicguy
An important part of my technique is to make sure the dealer knows up front that I am ready, willing, and able to buy the vehicle NOW. Then, when I make my offer, I give them $1,000 at least -on a credit card. (Again, this is to maintain control. If the dealer plays games, I can stop the payment.) And, I sign the order for my figure.
Without this firm offer and deposit, everything else is "Would you takes" or, pardon the language: Bullshit. They don't get down to serious negotiations with people who drift into the showroom just to talk. There is an unending stream of those folks whom they have not yet "qualified". They don't have the time to waste considering a real buyer may be tapping their foot waiting for a salesman. This goes double for phone calls and Internet. They are OK to get the dealer's starting number, but you have to go there, make a deposit and sign an order when you get serious.
For them to decline my offer means they have to give money back. Believe me, they don't want to do that. So, they counter-offer. That begins what I call "the dance". It is friendly, but firm and serious. The dealership actually likes it because that is what they are trained to do. Otherwise, they wouldn't need salesmen, sales managers, F&I guys. They could just have a box labeled "Place Your Order Here".
I never take a trade to the dealer. That is a separate business for them. They must buy your car wholesale and sell it retail to make money in that department. I prefer to sell my own car at a bit less than retail and keep the profit myself. For those who do, I recommend having the dealer appraise your trade up front so you have a firm figure to work with. Then talk about the new car. They may tell you "It depends on what you buy." Again.... BS. The appraisal is the appraisal. The ALLOWANCE can differ according to what you buy or what you can negotiate.
Lastly, I NEVER discuss payments with them. I tell them "I came to the car dealer to buy a car. I go to the bank for financing." That said, after the deal is made, I will let them bid for the financing. On my present TL, I already had financing arranged but the dealer shopped my financing and came up with a 3.25% rate. So, he got it. But this was after the deal was made.
It is fundamental for salesmen to try and get the customer to talk payments. If you take the bait, he has you. He can play with interest rates, term, balloon notes, etc. to give you whatever monthly number it takes to get you to sign on the bottom line.
The dealer makes a profit on anything he touches: vehicle, dealer installed accessories, extended warranties, financing, insurance, tinting, pin-stripes, etc. Those prices and profit margins are highly inflated. I find them useful as bargaining chips. For example, when they will move no more on price and you are happy with the number, I might say: "It's not my price but I will take it if you throw in mud flaps and trunk tray." This retails for a couple of hundred but costs the dealer about $50. They give it up pretty easily. In fact, they will often suggest it.
Here is a thread that goes into this in depth if you are interested.
Buyer's Advice
Without this firm offer and deposit, everything else is "Would you takes" or, pardon the language: Bullshit. They don't get down to serious negotiations with people who drift into the showroom just to talk. There is an unending stream of those folks whom they have not yet "qualified". They don't have the time to waste considering a real buyer may be tapping their foot waiting for a salesman. This goes double for phone calls and Internet. They are OK to get the dealer's starting number, but you have to go there, make a deposit and sign an order when you get serious.
For them to decline my offer means they have to give money back. Believe me, they don't want to do that. So, they counter-offer. That begins what I call "the dance". It is friendly, but firm and serious. The dealership actually likes it because that is what they are trained to do. Otherwise, they wouldn't need salesmen, sales managers, F&I guys. They could just have a box labeled "Place Your Order Here".
I never take a trade to the dealer. That is a separate business for them. They must buy your car wholesale and sell it retail to make money in that department. I prefer to sell my own car at a bit less than retail and keep the profit myself. For those who do, I recommend having the dealer appraise your trade up front so you have a firm figure to work with. Then talk about the new car. They may tell you "It depends on what you buy." Again.... BS. The appraisal is the appraisal. The ALLOWANCE can differ according to what you buy or what you can negotiate.
Lastly, I NEVER discuss payments with them. I tell them "I came to the car dealer to buy a car. I go to the bank for financing." That said, after the deal is made, I will let them bid for the financing. On my present TL, I already had financing arranged but the dealer shopped my financing and came up with a 3.25% rate. So, he got it. But this was after the deal was made.
It is fundamental for salesmen to try and get the customer to talk payments. If you take the bait, he has you. He can play with interest rates, term, balloon notes, etc. to give you whatever monthly number it takes to get you to sign on the bottom line.
The dealer makes a profit on anything he touches: vehicle, dealer installed accessories, extended warranties, financing, insurance, tinting, pin-stripes, etc. Those prices and profit margins are highly inflated. I find them useful as bargaining chips. For example, when they will move no more on price and you are happy with the number, I might say: "It's not my price but I will take it if you throw in mud flaps and trunk tray." This retails for a couple of hundred but costs the dealer about $50. They give it up pretty easily. In fact, they will often suggest it.
Here is a thread that goes into this in depth if you are interested.
Buyer's Advice
02-06-2010, 04:54 PM
#125
xpditor
I think we're violently agreeing.
I've done a trade in before, but only after getting a straight "buy only" bid from 3 or so different dealers of the same brand. That way I knew what number was close to what was real. Plus, I looked in the newspaper as to what private sellers were selling my car for....that got me close to what the trade was really worth.
As mentioned, it's a rarity I do a trade. And, I'll trade only if the tax advantage is greater than the price differential between true used value and trade value. That doesn't happen very often, though.
If a dealer does come back to me with an attempted bump after making my firm offer, I normally walk. After all, it's a firm offer. Either accept it, or reject it. However, if they come back rejecting my firm offer, and they also come back relatively close to my firm offer (say $100), I always ask for something in return to close the deal (i.e. winter floor mats, tint and/or mud flaps, etc).
I can't remember the last time I actually was still talking about price with a dealer more than 10 minutes or so.
Depending on the car, I'm usually a few hundred above invoice less any rebates. And, I've not added more than $100 for doc fees to my offer......EVER!
I'm a cash buyer so financing doesn't enter into it. Neither does "window etching, 3rd party alarm systems, paint sealant or fabric protection either. Actually, I make skidmarks away from dealers who actually use sticker addendums for that stuff. It just gets in the way of me making a deal.
I've done a trade in before, but only after getting a straight "buy only" bid from 3 or so different dealers of the same brand. That way I knew what number was close to what was real. Plus, I looked in the newspaper as to what private sellers were selling my car for....that got me close to what the trade was really worth.
As mentioned, it's a rarity I do a trade. And, I'll trade only if the tax advantage is greater than the price differential between true used value and trade value. That doesn't happen very often, though.
If a dealer does come back to me with an attempted bump after making my firm offer, I normally walk. After all, it's a firm offer. Either accept it, or reject it. However, if they come back rejecting my firm offer, and they also come back relatively close to my firm offer (say $100), I always ask for something in return to close the deal (i.e. winter floor mats, tint and/or mud flaps, etc).
I can't remember the last time I actually was still talking about price with a dealer more than 10 minutes or so.
Depending on the car, I'm usually a few hundred above invoice less any rebates. And, I've not added more than $100 for doc fees to my offer......EVER!
I'm a cash buyer so financing doesn't enter into it. Neither does "window etching, 3rd party alarm systems, paint sealant or fabric protection either. Actually, I make skidmarks away from dealers who actually use sticker addendums for that stuff. It just gets in the way of me making a deal.
02-06-2010, 05:04 PM
#127
5th Gear
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2010 Pricing
example Invoice + Destination - $2,0000 = price
02-06-2010, 07:05 PM
#128
Senior Moderator
Be Prepared
....I'm a cash buyer so financing doesn't enter into it. Neither does "window etching, 3rd party alarm systems, paint sealant or fabric protection either. Actually, I make skidmarks away from dealers who actually use sticker addendums for that stuff. It just gets in the way of me making a deal.
When I am earning an average of 23% on my stock portfolio, I'm not about to pass up 3.25% to use someone else's money.
I mentioned before that, as a matter of personal policy, I refuse to pay "document fees" or "dealer fees". They are just straight up bogus terms which might as well read "additional dealer profit". They confuse the negotiations for me. So, I tell them up front to include all fees and charges in with their quote to me (except for sales tax). Some will try and inflate their tag transfer and title fees.
I'm with you on the dealer's addendum sticker. I do a 180 and walk before a salesman even gets to me if I see a "Market Adjustment $1,000" or similar non-sense. I also tell them to take all the "sealant, rust-proofing, fabric protector, window etching, etc. off as I do not want any of it. Of course, they can't take it off -and in many cases they haven't put in on yet. But, the charge comes off.
We are also on the same page regarding doing all your research on the Internet before you go in. That is good preparation but often is not up to date and may not include all incentives to the dealer.
My last car, I actually got $1,000 cheaper than I was prepared to pay based on my research. But, by hitting them low and then letting them bring me up little by little, I got a deal I didn't think was possible when I walked in. I still don't know how or why they did it. I'm just glad they did.
02-07-2010, 09:09 AM
#130
XP....we've had similar experiences.
When the totally redesigned Mustang came out in '04 (MY '05) it was hot as firecrackers on July 4th. No one, anywhere, could get them for anything less than MSRP. Matter of fact, most dealerships were asking more than MSRP stating "marketing adjustment".
I'm a Mustang person. Have had 3 of them over the years.
I had spied a new Mustang GT on my local dealer's lot that I really liked. It was probably one of the first 10 GTs in the city, at the time.
I was spying it one Sunday. I had looked up the MSRP and invoice previously. I was approached by a salesperson. He proceeded to tell me how fast it was, how the redesign made it one of the best Mustangs ever made, blah, blah, blah.
I asked him if they wanted to make a deal today....right now. His eyes lite up and obviously said "yes". I told him to go to his manager and ask him if he wanted to do a quick and easy deal. I had already put my number together. There were no incentives on it at the time. My number was $X + $250 over invoice, plus TTL. The sales person balked and said all of their Mustangs were selling for MSRP plus whatever "market adjustment" that was on the sticker. He said he wouldn't even both to take my offer to his sales manager as he knew it would be rejected.
I told him to tell his manager that I'm prepared to buy the car, right now (even before I test drove it). Reluctantly, he went to his manager, who ambled out of the showroom to restate the sales person's mantra....."this is a hot car, not many of them around, sell them all day at MSRP +, etc".
I repeated myself, "I'm buying right here, right now, for $X. This will probably be the quickest deal you make this month, or for the next 6 months. No muss, no fuss".
Sales manager said "Right now?"
"Yep. It's the end of the month. Do you want to move another unit real fast?".
He agreed. We had a deal within 5 minutes. I was out the door in less than 45 minutes with the new Mustang.
For the rest of the MY, Mustangs stayed in high demand. And, no one was selling them for less than MSRP + because they were selling everyone of them they could get their hands on. It wasn't until the next MY ('06) that Ford finally started to catch up production with demand. And, the dealers began discounting them.
Making it quick and easy was the key in that deal. There was little effort on the dealership's part, so they were really willing to make a skinny deal on the hottest car in the state.....probably the country, because it was quick and easy.
As this relates to TLs, it's kind of the opposite. Honda doesn't use "secret" incentives on any of their cars.
I know for a fact Hyundai does, since I also looked at the Genesis. You can buy those all day, every day for well under invoice because of that, even though they've sold well. Can't remember which pub it was, but either Fortune or Forbes actually had a recent article about Hyundai stating the fact that Hyundai offers their dealers unpublished incentives.
Honda doesn't offer unpublished dealer incentives. Never has. Even though Acura is trying to push the TL upmarket, they're going to do it methodically, with no unpublished dealer incentives to move the TL even quicker. Everything we see published, is what's available. You might find a demo unit that Honda puts unpublished dealer incentives on. But, that's about it.
As you and I have pointed out, there's a multitude of ways to pack more margin into new cars......underallowing on a trade. High doc fees. Dealer installed accessories, extended warranties, etc. That's why I figure everything into my offer...taxes, title fees, license fees, etc. That way, there's not any surprises (or other fees) when you go to the F&I office to complete the trasnaction.
Can't remember where I saw it (maybe here?), but one person posted a very good deal on their TL. When I quizzed them about having a trade, they said they did. And, it was a few hundred less than Galves. That's where the dealer made money. First, Galves ordinarily has the lowest number on any given trade. I find that KBB usually is closest of them all as to the real value a trade. So using Galves, you're at a disadvantage already. A few hudred under that number? Well, that person's trade was really "low balled". That's where the dealer really made money on the deal.....not on the price of the TL.
02-07-2010, 12:08 PM
#131
Senior Moderator
@Graphicguy:
I'm not speaking of unpublished dealer incentives. I'm speaking of incentives that have not YET been published since they are new and the usual websites haven't updated their info YET.
Incentives to dealers are not announced ahead of time. If they were, dealers would sandbag their sales, holding them until the incentives went into effect to make more profit. That's just the nature of the animal.
There are also complicated floor-plan incentives that are predicated on ideal profiles and involve the dealer hold-backs that never come to the attention of the public. These are indirect incentives but still relevant to the end deal.
Then, there are the in-house spiffs for both the sales manager and/or sales people. These, as we have both noted, come into play usually at the end of the month. There are goals, usually at volume levels (e.g. 10, 15, 20 for a salesman or 100, 125, 150 for a sales manager) that will lead to bonus commissions.... sometimes retroactive to the first sale. If you are trying to make a sale and this is the unit that will put you over the hump and it is 8PM on the last day of the month..... you are highly motivated to move this unit over the curb. I have seen salesman give up their commission just to hit the bonus level.
How much does a salesman make on commission? It varies from house to house but 1/4 of the dealer profit is common. Of course, the dealer plays with his cost and profit numbers in these calculations also. It's common for the dealer to add a "pack" onto his cost for advertising, blah, blah, to keep the commissions low. They are equal opportunity scammers.
I'm not speaking of unpublished dealer incentives. I'm speaking of incentives that have not YET been published since they are new and the usual websites haven't updated their info YET.
Incentives to dealers are not announced ahead of time. If they were, dealers would sandbag their sales, holding them until the incentives went into effect to make more profit. That's just the nature of the animal.
There are also complicated floor-plan incentives that are predicated on ideal profiles and involve the dealer hold-backs that never come to the attention of the public. These are indirect incentives but still relevant to the end deal.
Then, there are the in-house spiffs for both the sales manager and/or sales people. These, as we have both noted, come into play usually at the end of the month. There are goals, usually at volume levels (e.g. 10, 15, 20 for a salesman or 100, 125, 150 for a sales manager) that will lead to bonus commissions.... sometimes retroactive to the first sale. If you are trying to make a sale and this is the unit that will put you over the hump and it is 8PM on the last day of the month..... you are highly motivated to move this unit over the curb. I have seen salesman give up their commission just to hit the bonus level.
How much does a salesman make on commission? It varies from house to house but 1/4 of the dealer profit is common. Of course, the dealer plays with his cost and profit numbers in these calculations also. It's common for the dealer to add a "pack" onto his cost for advertising, blah, blah, to keep the commissions low. They are equal opportunity scammers.
02-07-2010, 01:09 PM
#132
@Graphicguy:
I'm not speaking of unpublished dealer incentives. I'm speaking of incentives that have not YET been published since they are new and the usual websites haven't updated their info YET.
Incentives to dealers are not announced ahead of time. If they were, dealers would sandbag their sales, holding them until the incentives went into effect to make more profit. That's just the nature of the animal.
There are also complicated floor-plan incentives that are predicated on ideal profiles and involve the dealer hold-backs that never come to the attention of the public. These are indirect incentives but still relevant to the end deal.
Then, there are the in-house spiffs for both the sales manager and/or sales people. These, as we have both noted, come into play usually at the end of the month. There are goals, usually at volume levels (e.g. 10, 15, 20 for a salesman or 100, 125, 150 for a sales manager) that will lead to bonus commissions.... sometimes retroactive to the first sale. If you are trying to make a sale and this is the unit that will put you over the hump and it is 8PM on the last day of the month..... you are highly motivated to move this unit over the curb. I have seen salesman give up their commission just to hit the bonus level.
How much does a salesman make on commission? It varies from house to house but 1/4 of the dealer profit is common. Of course, the dealer plays with his cost and profit numbers in these calculations also. It's common for the dealer to add a "pack" onto his cost for advertising, blah, blah, to keep the commissions low. They are equal opportunity scammers.
I'm not speaking of unpublished dealer incentives. I'm speaking of incentives that have not YET been published since they are new and the usual websites haven't updated their info YET.
Incentives to dealers are not announced ahead of time. If they were, dealers would sandbag their sales, holding them until the incentives went into effect to make more profit. That's just the nature of the animal.
There are also complicated floor-plan incentives that are predicated on ideal profiles and involve the dealer hold-backs that never come to the attention of the public. These are indirect incentives but still relevant to the end deal.
Then, there are the in-house spiffs for both the sales manager and/or sales people. These, as we have both noted, come into play usually at the end of the month. There are goals, usually at volume levels (e.g. 10, 15, 20 for a salesman or 100, 125, 150 for a sales manager) that will lead to bonus commissions.... sometimes retroactive to the first sale. If you are trying to make a sale and this is the unit that will put you over the hump and it is 8PM on the last day of the month..... you are highly motivated to move this unit over the curb. I have seen salesman give up their commission just to hit the bonus level.
How much does a salesman make on commission? It varies from house to house but 1/4 of the dealer profit is common. Of course, the dealer plays with his cost and profit numbers in these calculations also. It's common for the dealer to add a "pack" onto his cost for advertising, blah, blah, to keep the commissions low. They are equal opportunity scammers.
I know none of them get paid on holdback....not even the sales managers get paid on holdback. Holdback is reserved for the dealership.
As far as sales contests and manufacturer spiffs, you're right. They'd be willing to do a skinny deal to move a unit over the curb. That's why it's never a bad idea to shop at the end of the month, end of the quarter, end of the year, when a few, or even a single unit might propel them into the next spiff level. It never hurts to ask them if the "next sale" will put them into a different commission or spiff category. Some are willing to divulge that. Some are not. Then, some say they're "hungry" to move another unit to gain more commissions, when in reality, it's another statement to get you to stay at the negotiation table longer. As soon as you head out of the front door of the dealership, the sales people/managers know that the likelihood of you coming back is slim.
The manufacturers run sales contests with spiffs as much as the dealerships do. I know for awhile Toyota used to run contests that you would qualify for spiffs as a sales person if you hit a certain unit volume as well as customer service ratings. But, those are separate. You aren't going to be able to get any of that money, even if you knew it existed to begin with.
Speaking of Toyota, while their current woes are well documented, a few years ago I had a golfing colleague who worked for Toyota's North American HQ. The very best deal on any Toyota (or Lexus, for that matter) was to buy one of the cars that they were allowed to drive for 3K miles or so. They usually offered those cars to the dealerships. But, if I wanted, he'd offer one of them to me, before the dealership got it, and marked it up.
Same goes for one of the dealership principal's who attended my church (since passed away). He owned a BMW, Chevy, and a couple of other stores. He always offered me any car at any of his stores for his "true" cost. He usually kept about $500 of the holdback money to offset floor plan. But, still got great deals from him. I'd call him. Tell him what I wanted. His General Manager would give me a jingle, telling me what he had available. I'd go take a look, see the price, sign the deal. Great deals there, too.
02-07-2010, 05:08 PM
#133
Senior Moderator
A Golf or an Ex-golf?
Speaking of Golf...
They have the Honda Classic Golf Tournament near me at Heron Bay. Honda/Acura provides "executive" cars for the players to drive while they are at the tournament.
These are then sold at a considerable discount and have only light usage. Very similar to the Executive cars of which you speak.
It seems Honda had reps present to discuss this with prospective buyers. (A fringe benefit for the Honda reps no doubt coupled with a good seat in the Honda VIP tent.)
They have the Honda Classic Golf Tournament near me at Heron Bay. Honda/Acura provides "executive" cars for the players to drive while they are at the tournament.
These are then sold at a considerable discount and have only light usage. Very similar to the Executive cars of which you speak.
It seems Honda had reps present to discuss this with prospective buyers. (A fringe benefit for the Honda reps no doubt coupled with a good seat in the Honda VIP tent.)
Last edited by Xpditor; 02-14-2010 at 10:45 PM.
02-07-2010, 05:13 PM
#134
Senior Moderator
Under consideration.... Need input
I'm considering merging this thread with the "Advice With Dealers/Sales" thread previously referenced.
Does the OP have any objections? Anyone else?
A re-direct will send you over to the merged thread automatically. This will then become part of the 3G Garage Sticky thread and grant immortality. (I feel so omnipotent!)
Does the OP have any objections? Anyone else?
A re-direct will send you over to the merged thread automatically. This will then become part of the 3G Garage Sticky thread and grant immortality. (I feel so omnipotent!)
02-07-2010, 10:26 PM
#135
Instructor
You're right. As I mentioned, plenty of ways to skin a cat. What works for you is all that matters.
....................
Quick story.....my late Father was a notorious grinder. He'd spend hour upon hour grinding away to make a deal. Sometimes it would extend into days, fighting over a $100 here, or $150 there. Sometimes walking away from the table for as little as $50.
Several years ago, he and I were both in the market for a new truck. We actually wanted the same truck (F150) with the same options. Originally, we were going to try to see if we could get a better deal by buying two trucks at the same time, from the same dealer. He used to believe whole heartedly that his grinding was the "right" way to buy. On a whim, I bet him a dinner that I would try my way....he could do it his way, and that there wouldn't be $50 worth of difference between the two.
It was a Saturday. He went to one Ford dealer. I went to another. The night before, I pulled up all the numbers, ...............
As you say, what works is what works for each individual.
....................
Quick story.....my late Father was a notorious grinder. He'd spend hour upon hour grinding away to make a deal. Sometimes it would extend into days, fighting over a $100 here, or $150 there. Sometimes walking away from the table for as little as $50.
Several years ago, he and I were both in the market for a new truck. We actually wanted the same truck (F150) with the same options. Originally, we were going to try to see if we could get a better deal by buying two trucks at the same time, from the same dealer. He used to believe whole heartedly that his grinding was the "right" way to buy. On a whim, I bet him a dinner that I would try my way....he could do it his way, and that there wouldn't be $50 worth of difference between the two.
It was a Saturday. He went to one Ford dealer. I went to another. The night before, I pulled up all the numbers, ...............
As you say, what works is what works for each individual.
02-08-2010, 12:17 AM
#136
Senior Moderator
Threads Merged....
...into this one now located in 4G since it deals with strategies for buying new vehicles such as the TL.
However, the strategies work equally well with other makes and models.
However, the strategies work equally well with other makes and models.
02-09-2010, 04:30 AM
#137
5th Gear
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Hey everyone. Got some more quotes for the 2010 TL base with tech: $34,250 and $33,485 both +TTL (destination already included.) The first is actually the second quote from the same dealer, I didn't even try to get them lower and they dropped it by $750 on their second email offer.
The $33,485 is the first quote from a different dealer and I asked if the $2K dealer incentive was available at this dealership and if it was already part of the quote (I have a feeling it is but I just wanted to let him know I know about the incentive.) I also asked what the TTL fees would be along with any other fees because I am looking for the total price of the car because lets face it, they stand to make a lot of $$$ on that crap, if I let them. Thirdly, I told him I had an offer for an upgrade to the 18" wheels at no additional charge and I asked if that would be a possibility if I bought from his dealership. His reply was, "Give me a call when you can. I'd rather go over the numbers over the phone. We both know you are comparing pricing with your local dealer. I will do what I can to make it worth your while to come here." In my first email to him I specifically said I was waiting on offers from other dealers so I'm not sure why he said "we both know you are comparing pricing," I mean HELLO did you really think I was just gonna go to one dealer and hope for the best?
Ok I have to admit his email's tone sounded a little "pissy" so I let it simmer for a day or two and plan on calling him today or tomorrow. I'm hoping he'll give me the run down of the fees cus I want to know upfront what the "deal" is. I haven't tried to get him lower because i wasn't even expecting an offer like that. If I could get that price with the 18" wheels I think I would be happy. The USAA true car price report said the true price for a base with tech is $33,338 so he's pretty close to that.
I don't even want to tell the other dealer his quote of $33,485 because they already lowered it once and to be honest I just don't want to haggle. Here are the facts, I want this car, I got the $ to buy it, and I don't want any BS. Is this a good price? I think my judgment is clouded because I want this car so bad and I want to believe I can't do any better and I should just buy it. On the other hand, I feel like I should try to get him lower cus even $100 less is money in my pocket and not in his. Either way, I plan on being the proud owner of a 2010 TL (which has an awesome body design if you want my
) in the next couple of days or so!!! But I promised I would wait til after the expected snow storm cus I'd rather have them clean the snow off the car for me! lol
The $33,485 is the first quote from a different dealer and I asked if the $2K dealer incentive was available at this dealership and if it was already part of the quote (I have a feeling it is but I just wanted to let him know I know about the incentive.) I also asked what the TTL fees would be along with any other fees because I am looking for the total price of the car because lets face it, they stand to make a lot of $$$ on that crap, if I let them. Thirdly, I told him I had an offer for an upgrade to the 18" wheels at no additional charge and I asked if that would be a possibility if I bought from his dealership. His reply was, "Give me a call when you can. I'd rather go over the numbers over the phone. We both know you are comparing pricing with your local dealer. I will do what I can to make it worth your while to come here." In my first email to him I specifically said I was waiting on offers from other dealers so I'm not sure why he said "we both know you are comparing pricing," I mean HELLO did you really think I was just gonna go to one dealer and hope for the best?
Ok I have to admit his email's tone sounded a little "pissy" so I let it simmer for a day or two and plan on calling him today or tomorrow. I'm hoping he'll give me the run down of the fees cus I want to know upfront what the "deal" is. I haven't tried to get him lower because i wasn't even expecting an offer like that. If I could get that price with the 18" wheels I think I would be happy. The USAA true car price report said the true price for a base with tech is $33,338 so he's pretty close to that.
I don't even want to tell the other dealer his quote of $33,485 because they already lowered it once and to be honest I just don't want to haggle. Here are the facts, I want this car, I got the $ to buy it, and I don't want any BS. Is this a good price? I think my judgment is clouded because I want this car so bad and I want to believe I can't do any better and I should just buy it. On the other hand, I feel like I should try to get him lower cus even $100 less is money in my pocket and not in his. Either way, I plan on being the proud owner of a 2010 TL (which has an awesome body design if you want my
) in the next couple of days or so!!! But I promised I would wait til after the expected snow storm cus I'd rather have them clean the snow off the car for me! lol
02-09-2010, 07:45 AM
#138
acura newbie....if you don't like the negotiation process, keep doing what you're doing....sending out requests to the local dealers and see what they respond with.
On the other hand, I believe you never get the best price until you're sitting in the dealership, check in hand. That makes you a real buyer, and not just a shopper.
On the other hand, I believe you never get the best price until you're sitting in the dealership, check in hand. That makes you a real buyer, and not just a shopper.
02-09-2010, 10:43 AM
#139
Senior Moderator
You can lead a horse to water, but.......
^^ 
He wants to talk to you on the phone because nothing is in writing and you can't hold him to it. Phone is useless. Internet price just gives you a place to start. There is no serious negotiations until you are there at the dealer: ready, willing, and able to buy and the dealer knows it.
Salesmen hope and pray for guys like you, Newbie... In love with the car and throwing caution to the wind.
There is some excellent advice in this merged thread with several good options to get the best price.
It's your money. But, if it were me, I would take the time to read the posts here and plan your buying strategy accordingly.
He wants to talk to you on the phone because nothing is in writing and you can't hold him to it. Phone is useless. Internet price just gives you a place to start. There is no serious negotiations until you are there at the dealer: ready, willing, and able to buy and the dealer knows it.
Salesmen hope and pray for guys like you, Newbie... In love with the car and throwing caution to the wind.
There is some excellent advice in this merged thread with several good options to get the best price.
It's your money. But, if it were me, I would take the time to read the posts here and plan your buying strategy accordingly.
02-09-2010, 11:40 PM
#140
Intermediate
Join Date: Dec 2009
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He wants to talk to you on the phone because nothing is in writing and you can't hold him to it. Phone is useless. Internet price just gives you a place to start. There is no serious negotiations until you are there at the dealer: ready, willing, and able to buy and the dealer knows it.
02-10-2010, 11:26 PM
#141
Senior Moderator
Many ways to skin a cat...
Congratulations.
My only comment is that you bought the car at their price; not yours. As I mentioned in another post, the phone and Internet prices are a good place to start. But, if that's the method you are most comfortable with, then it works for you and really works for the dealer.
Until a dealer rejects an offer, you don't have any idea how much lower he might have gone.
"Invoice" has become just another sales gimmick with little relation to reality.
It would be interesting to see what was added on to his quote when you sat down to make out the paperwork. Extra options? Protection package? Freight? Dealer fees? Gap insurance, etc. Did the dealer handle the financing?
Or, can you say that you walked in, wrote the check for the quoted price exactly and left with the car? If so, great!
My only comment is that you bought the car at their price; not yours. As I mentioned in another post, the phone and Internet prices are a good place to start. But, if that's the method you are most comfortable with, then it works for you and really works for the dealer.
Until a dealer rejects an offer, you don't have any idea how much lower he might have gone.
"Invoice" has become just another sales gimmick with little relation to reality.
It would be interesting to see what was added on to his quote when you sat down to make out the paperwork. Extra options? Protection package? Freight? Dealer fees? Gap insurance, etc. Did the dealer handle the financing?
Or, can you say that you walked in, wrote the check for the quoted price exactly and left with the car? If so, great!
02-11-2010, 12:18 AM
#142
Intermediate
Join Date: Dec 2009
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It would be interesting to see what was added on to his quote when you sat down to make out the paperwork. Extra options? Protection package? Freight? Dealer fees? Gap insurance, etc. Did the dealer handle the financing?
02-12-2010, 12:47 PM
#145
02-12-2010, 03:36 PM
#149
Based on your out the door price, it would seem your quote did not include the destination charge of $710. That would bring your total to $37,560. Thats still a good price. You can probably get it lower with some more negotiations. Be sure to get details of how much for registration, title, and doc fees. With that information you will be able to tell if you are really getting a good deal.
02-12-2010, 05:30 PM
#150
3rd Gear
Join Date: Feb 2010
Age: 55
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Hi all. I'm hoping to be a new TL owner next week! 
I wanted to share the site truecar.com with the folks in this thread. It's a new car pricing site kind of like Edmunds or Kelly Blue Book, with some cool flare. Anyway, I wanted to know what you guys thought since I'm going to try to use the information gleaned there to help with my negotiations with local Acura dealers.
Also, not quite off-topic:
Any ideas what a good price to pay for Gap insurance might be?
Is the dealer quote for Gap insurance fungible like all their other numbers? Can I haggle it down?
Neither my lender nor my car insurance company offer gap insurance and I'm having a tough time finding some place other than the dealership to buy it. Every site on the internet I've found so far that claims to offer gap insurance seems pretty shoddy.
Thanks for any help! Hopefully I'll be a member of the TL club this time next week!
I wanted to share the site truecar.com with the folks in this thread. It's a new car pricing site kind of like Edmunds or Kelly Blue Book, with some cool flare. Anyway, I wanted to know what you guys thought since I'm going to try to use the information gleaned there to help with my negotiations with local Acura dealers.
Also, not quite off-topic:
Any ideas what a good price to pay for Gap insurance might be?
Is the dealer quote for Gap insurance fungible like all their other numbers? Can I haggle it down?
Neither my lender nor my car insurance company offer gap insurance and I'm having a tough time finding some place other than the dealership to buy it. Every site on the internet I've found so far that claims to offer gap insurance seems pretty shoddy.
Thanks for any help! Hopefully I'll be a member of the TL club this time next week!
02-12-2010, 09:41 PM
#151
I feel strongly both ways
Hi all. I'm hoping to be a new TL owner next week!
I wanted to share the site truecar.com with the folks in this thread. It's a new car pricing site kind of like Edmunds or Kelly Blue Book, with some cool flare. Anyway, I wanted to know what you guys thought since I'm going to try to use the information gleaned there to help with my negotiations with local Acura dealers.
Also, not quite off-topic:
Any ideas what a good price to pay for Gap insurance might be?
Is the dealer quote for Gap insurance fungible like all their other numbers? Can I haggle it down?
Neither my lender nor my car insurance company offer gap insurance and I'm having a tough time finding some place other than the dealership to buy it. Every site on the internet I've found so far that claims to offer gap insurance seems pretty shoddy.
Thanks for any help! Hopefully I'll be a member of the TL club this time next week!
I wanted to share the site truecar.com with the folks in this thread. It's a new car pricing site kind of like Edmunds or Kelly Blue Book, with some cool flare. Anyway, I wanted to know what you guys thought since I'm going to try to use the information gleaned there to help with my negotiations with local Acura dealers.
Also, not quite off-topic:
Any ideas what a good price to pay for Gap insurance might be?
Is the dealer quote for Gap insurance fungible like all their other numbers? Can I haggle it down?
Neither my lender nor my car insurance company offer gap insurance and I'm having a tough time finding some place other than the dealership to buy it. Every site on the internet I've found so far that claims to offer gap insurance seems pretty shoddy.
Thanks for any help! Hopefully I'll be a member of the TL club this time next week!
02-13-2010, 09:39 AM
#152
Cruisin'
Join Date: Nov 2001
Location: CA
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I assume you're talking about a lease if you're concerned with gap insurance. Simple solution that negates the need for any gap insurance is to structure the lease with no down payement of any kind. All taxes and fees rolled into the lease. When you pick the car up you just pay first month plus license, etc. Bingo....you're protected.
02-13-2010, 12:47 PM
#153
You should be somewhere in the neighborhood of $38K-$38.5K + TTL. Don't know what your tax rate, or licensing fees are in your locale. Also ask what the dealer's doc fee is (and "no", they're not required to charge it, even if they say they are).
02-15-2010, 07:02 AM
#154
TL Driver
Well I finally pulled the trigger... I have been looking for months for a new TL starting with the 09's because I thought I could get a good deal. When I went in to the local dealer he made me a "better" deal on a 2010.
I am now the owner of:
2010 TL SH-AWD w/ Tech
Basque Red w/ ebony interior
$37,991 + TTL
Since the car is on the way, due in next week, I have time to think about the "dealer" installed options and the extended warranty. So 3 questions for the collective group
1. Did I get a fair deal? The dealer was a "no" haggle dealer and gave me that price after I drove it and pre-qualified. He knew I was going to buy...
2. The only options I am considering are the body side moldings and the door edge film at $261 and $152. Thoughts??
3. Has anyone had major warranty work done? I am really leaning away from the extended warranty, they price at
6yr 70K $1,400
7yr 70K $1,595
7yr 100K $1,825
8yr 100K $2,075
New TL guy...
I am now the owner of:
2010 TL SH-AWD w/ Tech
Basque Red w/ ebony interior
$37,991 + TTL
Since the car is on the way, due in next week, I have time to think about the "dealer" installed options and the extended warranty. So 3 questions for the collective group
1. Did I get a fair deal? The dealer was a "no" haggle dealer and gave me that price after I drove it and pre-qualified. He knew I was going to buy...
2. The only options I am considering are the body side moldings and the door edge film at $261 and $152. Thoughts??
3. Has anyone had major warranty work done? I am really leaning away from the extended warranty, they price at
6yr 70K $1,400
7yr 70K $1,595
7yr 100K $1,825
8yr 100K $2,075
New TL guy...
02-15-2010, 08:11 AM
#155
Drifting
Great price, will be nice to see more of those Basque Red's around...
As for the warranty... I think you can get them down on that. I got quoted over the phone for an 8yr 100k for 1400. If you can't get it for that price or less (they used to be 1200 when you could buy them online), then don't get it and call around to other dealers to buy it.
As for the warranty... I think you can get them down on that. I got quoted over the phone for an 8yr 100k for 1400. If you can't get it for that price or less (they used to be 1200 when you could buy them online), then don't get it and call around to other dealers to buy it.
02-15-2010, 08:32 AM
#156
I feel strongly both ways
You can do better than that. Google "AcuraCare extended warranty price" and see what you come up with. With a tech car I think you may want to get it. Don't forget, it's fully transferrable so if you do decide to sell it's going to be a huge selling point to the prospective new owner. FWIW I got my 7 year/100,000 mile AcuraCare warranty with $0 deductible for $1100 from Curry Acura. Warranty came directly from AcuraCare so is 100% reliable and honored at any Honda or Acura dealership. I think it's a wise investment. Maybe optional for a non-tech car but (I believe) almost mandatory for one of the tech cars. If that nav system ever went out, expect it to run at least $2000 to replace/repair.
02-16-2010, 09:46 PM
#158
4th Gear
Join Date: Feb 2010
Age: 48
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Any advice for dealers that refuse to haggle? My local dealer in Nashville does the no-haggle pricing. They say it is better for everyone. We bought our 2007 MDX there. They gave me more than I thought I deserved for the trade.
Any advice for these dealers would be appreciated!
Any advice for these dealers would be appreciated!
02-16-2010, 11:37 PM
#159
Senior Moderator
Any advice for dealers that refuse to haggle? My local dealer in Nashville does the no-haggle pricing. They say it is better for everyone. We bought our 2007 MDX there. They gave me more than I thought I deserved for the trade.
Any advice for these dealers would be appreciated!
Any advice for these dealers would be appreciated!
Just go in prepared to buy. Take your credit card for a deposit. Make a low offer and give them a $500 deposit. They will write up an order "to take to the boss and see if he'll accept it".
They won't let you leave without a car if it's at all possible to make a little profit. BEWARE of hidden "dealer fees" or "document fees" that are not revealed until after a price is agreed upon. Tell them you want ALL FEES disclosed up front and included in their price.
If they reject your offer and refuse to budge off the "no haggle" price, you have lost nothing except some time.
"No haggle" is just another gimmick that appeals to people who hate negotiating or are afraid of confronting bully salesman/managers.
It's a jungle out there and the rule of the jungle applies: Eat or Be Eaten.
02-17-2010, 08:17 AM
#160
Senior Moderator
From a Vehix.com article by Michael Waterman:
"Dealerships want to make a deal
"Dealerships are anxious to sell you a new car. Last year was rough and 2010 isn’t projected to be a whole lot better. So you can walk into a dealership and confidently ask for their best deal. Feel free to walk away if you’re not happy with the terms. If you’re a qualified buyer, there’s a good chance you can work out a great deal on a new car.
"You might even be surprised by how much your local dealership offers for your current car. Obviously, you should weigh your options of trading in your car or selling the car privately to see which option will deliver the biggest bang for your buck. But we’ve heard from many recent car buyers that dealer trade-in prices are much better than expected and are even exceeding expected values found online."
"Car companies are offering big incentives
"For most of us, we buy used and even certified pre-owned vehicles because you can often land a great car for a great price. Right now, the same could be said of new cars. You can thank manufacturer and dealer incentives for that. In fact, the Ford Motor Company (Ford, Lincoln, Mercury), GM (Chevrolet, Buick, Cadillac, GMC) and Hyundai are offering additional incentives to current Toyota drivers. It's their way of capitalizing on Toyota's recall woes and if you're on the buying end of the equation, it equals even more savings.
"One other option to consider: government incentives when and where available. During the Cash for Clunkers program last year, some buyers walked out of a dealer’s showroom with a brand new Hyundai Sonata for about $11,000. That’s nearly $8,000 in savings on a good family car.
"The key was mixing and matching dealer and manufacturer incentives, using the government Cash for Clunkers program and trading in their clunker for a better vehicle."
Watch This Video
"Dealerships want to make a deal
"Dealerships are anxious to sell you a new car. Last year was rough and 2010 isn’t projected to be a whole lot better. So you can walk into a dealership and confidently ask for their best deal. Feel free to walk away if you’re not happy with the terms. If you’re a qualified buyer, there’s a good chance you can work out a great deal on a new car.
"You might even be surprised by how much your local dealership offers for your current car. Obviously, you should weigh your options of trading in your car or selling the car privately to see which option will deliver the biggest bang for your buck. But we’ve heard from many recent car buyers that dealer trade-in prices are much better than expected and are even exceeding expected values found online."
"Car companies are offering big incentives
"For most of us, we buy used and even certified pre-owned vehicles because you can often land a great car for a great price. Right now, the same could be said of new cars. You can thank manufacturer and dealer incentives for that. In fact, the Ford Motor Company (Ford, Lincoln, Mercury), GM (Chevrolet, Buick, Cadillac, GMC) and Hyundai are offering additional incentives to current Toyota drivers. It's their way of capitalizing on Toyota's recall woes and if you're on the buying end of the equation, it equals even more savings.
"One other option to consider: government incentives when and where available. During the Cash for Clunkers program last year, some buyers walked out of a dealer’s showroom with a brand new Hyundai Sonata for about $11,000. That’s nearly $8,000 in savings on a good family car.
"The key was mixing and matching dealer and manufacturer incentives, using the government Cash for Clunkers program and trading in their clunker for a better vehicle."
Watch This Video
Last edited by Xpditor; 02-17-2010 at 08:47 AM.