Advice with Dealers/Sales

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Old 09-13-2004, 02:06 PM
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Advice with Dealers/Sales

Hey all, I'm an Accord owner, and I'm totally in love with the Acura TL, so I'm in the market and not very good with the dealers and sales people.

I need your advice...

The dealer said the 2005's are about a month away, but I'm ok buying a 2004 TL with Navigation, and a few extras (splash guards, all weather mats, and trunk tray). I want the automatic, 5 speed.

What do you think is a good price range I should go in there wanting to get it at? I know sticker that would be around $35k, but since its 2004 and 2005's are almost here, what should I expect to pay? I know they have to make their money also...so what do I shoot for? $32-34k???

Tell me what is expected from our point of view! Help me make a deal...

Thanks!

Chris
Old 09-13-2004, 03:03 PM
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Welcome to the fourm


If there is a room for you to negotiate your deal, you probably could get them free (splash guards, weather mats, and trunk tray).

There are some other price threads which may help you. Closer 05TL sale date, you may get more discount but less combo choices.


MOVE to 3G TL forum.
Old 09-13-2004, 03:32 PM
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CHRIS MC73

STOP!!

Spend some serious time on the Internet. Prices like your quoting can be beaten in many areas of the country.

Here in the Northwest, I found good inventory and prices in the small/medium sized towns. I was able to buy a 04/AT/NAV with, both mat sets, guards, trunk tray, gold package for $31,850.

Remember it’s YOUR money, get the best deal out there…………..THEN ENJOY !!!!!!!!!

DAVE
Old 09-13-2004, 03:36 PM
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But...

How do I use that on my side? Tell the sales guy I found one in another state for 31k, etc...? Is that really a good tool? How do they deal with me and those issues?
Old 09-13-2004, 03:57 PM
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What should I expect to pay...

I live in Oklahoma City, so the surrounding area's I guess could be considered competition, such as Dallas, Tulsa, etc...not sure I have never negotiated outside the city before.

Any advice what to do there?

What should I expect to pay for a 2004 TL, 5 speed, w/navi, Anthracite Metallic, with splash guards, all weather mats and trunk tray?

MSRP? $35,322K?
Invoice?
Ideal price?

What did you pay?
Old 09-13-2004, 04:02 PM
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You know you have a very very similar thread active now... http://www.acura-tl.com/forums/showthread.php?t=94221

One of your threads are very close to be "CLOSE"...


Best luck of you.
Old 09-13-2004, 04:17 PM
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Chris I can't tell whether you're looking for exact prices or general guidelines. If the former, I paid $32.8 here in the midwest for an 04 5AT Navi.

If the latter, well. . .no one-size-fits all answers here, but here are some rules of thumb.

1. Start the negotiation with the invoice price, not the MSRP. (Almost) nobody pays that. The invoice on your car is around $32 and change. Now. . .how much above invoice should you pay? That depends on your part of the country and the whole supply/demand thing, but you can always try to use forums like these to beat the dealer down. A guy from NY posted his purchase agreement a while back, and I used it with my dealer here in Missouri. He didn't match that price (nor did I really expect him to), but I used it to call his bluff when he said that these cars only sell a few hundred below MSRP in the best of times. Forums like these can even be helpful in your area, if you do a search. Information = power.

2. Remember the dealer gets about a 3% holdback from Acura. So, he can sell you the car at exactly invoice and still make around $1k. They might try to BS you about how the holdback only covers interest on the loan they get to buy cars from Acura (yes, they buy the car from Acura, and you buy it from them). But have you checked interest rates lately? To incur a finance charge of $1k over the month or so it will take them to sell the car, they'd be paying about 40% interest annually. In reality they're probably paying closer to 2-3% (or less). Nowhere near $1k.

3. Try to avoid trading your car to the dealer. You can get more by selling it yourself or to a Carmax if they're in your area. I mention this because if you trade to the dealer, they may try to get you into a "let's work on the trade difference" mentality, in which smoke/mirrors are used to obscure what you're really paying for the new car. They may sell you a car for $30k, but if they give $3k less on your trade than it's really worth, you just paid $33k for the car. Now, there's nothing wrong with trading to the dealer so long as you know what your car is worth before you walk in the door. I highly recommend getting a Carmax appraisal (free!) before going in. If there's no Carmax around, comparable classifieds (adjusted downward for the fact that you will get more selling to an individual vs. a company) can help too.

4. NEVER let the dealer get you into the "payment" mindset. They may say "well tell us how much you want to pay every month and we'll get you there." This, when combined with #3 above, becomes a powerful tool of obfuscation for the dealer, making it nearly impossible for you to tell what you're actually paying for the car. My brother in law negotiates based on how much he wants to pay every month. SUCKER! This is so obvious it's painful: there's a big difference between a 2-year loan and a 6 year loan. They will also probably try to hose you on the interest rate. Like #3, get comparables from your bank or other lenders in your area for a loan.

5. Be fair, understand they need to make money (sounds like you get this). Fair is somewhere between being a complete asshole (which works effectively for some people) and a complete sucker (like my brother in law). By this, I mean mainly to keep the items above in mind.
Old 09-13-2004, 04:26 PM
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Thanks!

Great advice! I want to walk out with a win/win situation...


I think I'm an easy target for the salesman to abuse me and make lots of cash!
I will try to be strong.

We'll see what I can do.


Thanks again.

Chris
Old 09-13-2004, 04:35 PM
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The art of the deal (in a nutshell)

Originally Posted by ChrisMc73
How do I use that on my side? Tell the sales guy I found one in another state for 31k, etc...? Is that really a good tool? How do they deal with me and those issues?
Wow! A simple question but books have been written on the art of negotiation.

The first step is to educate yourself on the figures. You have a computer so it's not that difficult. Check www.carbuyingtips.com. Also www.edmunds.com and www.intellichoice.com. Determine what the "Dealer Invoice" is. Understand that isn't his bare "cost" as there are hold backs from the factory and other hidden incentives late in the model year (now). Also know that your best buying time is the last few days of the month when they're trying to meet a sales goal.

My own policy is to consider the MSRP as the dealer's starting price. Then, based on my research, I determine what price I would happily pay for the car if I could get it for that. For example: MSRP= $35,220. I would be happy to get it for $ 31,500. I would then, assuming they had a car I wanted or had one on the way, offer about $28,000.

Of course this is an unreasonable number. But NO MORE unreasonable than the MSRP they are looking to get. Both numbers are starting places and "invitations to the dance". The idea is that if they come down (they will) and you come up (you will) in equal increments, you should end up in the middle somewhere around your goal of $31,500.

They don't open with their final offer and neither should you. You will rock them back on their heels with that number and they will go through a well rehearsed righteous indignation act. That's the time to just sit and stare and listen. They will often reveal lots of good information while in that state of shock. At the appropriate time you can say "You have your opening numbers and I have mine. Now let's get down to business. You made an offer (MSRP) and I made a counter-offer. It's your turn."

It is also important to realize that they are not going to be offended (although they might act like it). NOTHING offends a good salesman. They are trained to answer your objections one-by-one and to try and close the deal at the highest price possible. But, close they must or they make no money. Half a loaf is better than none.

Also, don't be embarrassed or shy as it is a game. They play their role; you play yours.

My own policy is that I NEVER buy a car on the first visit. I get them as low as I can. When they won't move any lower, I walk. This is a test. If the salesman and the T.O. guy (take over) let's me drive/walk over the curb, you can be pretty sure they are at that low point. They don't let a live prospect walk when they know the competition down the road can sell you a few hundred cheaper and get the deal. Then, if I'm a block away and there's no one chasing me... I may turn around and go right back... or wait until the next day. I would then come up a little from my last price to let them know the game is still on.

They must qualify you as a bona fide buyer for this all to work. It's good window dressing to have a checkbook conspicuously sticking out of your shirt pocket. I also had a license plate in a file folder (see www.carbuyingtips.com for more about "the folder").

This "qualifying" is an informal sizing you up to make sure you're a legit prospect with both the desire and ability to buy.

When you're down to bare bones and getting close and they won't move anymore, that's the time to start asking for freebies. Splash guards, trunk tray, wheel locks, tint or whatever. Just remember that all these things are marked up at least 100% from their dealer cost. What they are pimping as a $400 "protection package" probably costs the dealer $100.

Lastly, let them know up front that all of your negotiating numbers MUST include freight, dealer prep, dealer "fees", document fees, etc. The only add-ons to the number you agree on is to be for sales tax and the state license fee. You must be clear with them about that and get them to acknowledge it. They will moan and groan that "Even if I bought a car here, I would have to pay the document fees!" In a word: bullshit! If they must show those on the order, have them add the same amount to your discount. The point being that you let them know that they are NOT going to add it on at the last minute after you have agreed on a price. Let them know you think it is sneaky and underhanded and you want it included up front.

Buying a car can be a rewarding challenge if you arm yourself with knowledge about the car and have a negotiating strategy and then stick to it. Remember that you are in their court and they do this stuff several times a day. Don't worry about hurting their feelings. They are the shark; you are the tuna. Be an informed tuna. And have fun. Sometimes the tuna bites the shark. And sometimes everyone goes away whole and happy.

When you reach a deal you both agree on, give a $500 deposit on a CREDIT CARD so you can reverse the charge if they pull any hanky-panky. (They will ask for $1,000) Then, get a copy of the order signed by the dealer's authorized representative. They want to nail you down, but they are reluctant to be nailed down.

GOOD LUCK! And good hunting! You're going to love your new car!

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Old 09-14-2004, 12:18 AM
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Oops!

<Pardon my bump>
Old 09-14-2004, 11:20 AM
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Xpditor,

What if they try this stuff...

"Oh, well the navigation models are very popular, I can't really work much with the price on those, but the non navigations I can. I can maybe do $1000 off the MSRP with the navi, would that be more what you are looking for?"

Etc...

They have the skill I don't know what to say, I need your help! :-)
Old 09-14-2004, 12:19 PM
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Le Dance

Originally Posted by ChrisMc73
Xpditor,

What if they try this stuff...

"Oh, well the navigation models are very popular, I can't really work much with the price on those, but the non navigations I can. I can maybe do $1000 off the MSRP with the navi, would that be more what you are looking for?"

Etc...

They have the skill I don't know what to say, I need your help! :-)
You can expect them to say that and more. That is just one of the things to try and get the most money possible from you.

As I said, they come down a little; you go up a little. You should stick with and insist on the car YOU want. They wanted me to take a silver one. They said they could meet my price on a silver but not a black. I said "No. I want a black with camel." The salesperson conferred with the Mgr., came back and said "OK".

You should consider all these moves as "attempts" to get more money. They're not showing you the door. You just say "no". You know the car you want and you know what you want to pay for it. Let them know that you have researched your purchase on the Internet. That you have some other quotes- and that there are other dealers selling Acuras. (This is your "attempt" to get the price as low as possible.) It's all part of "the dance".

I should have mentioned before that the dealer makes money on other things besides the car sale. He will try and sell you an Extended Warranty at an inflated price. Usually about $1200 for a 7yr 100k mile. You can get the same warranty directly for about $800. The dealer stands to make about $400 there. Then, the financing. If the finance goes through the dealer, he can pick up another $4-500 on his "reserve" or commission for selling you the finance. All this adds to his profit and comes out of your pocket.

I would let them think that you might finance it through them and you might get the extended warranty. With that carrot, they might cut it closer on the car. They did for me. In fact, I went in with a blank check from Capital One at 3.5% but the dealer beat their rate and ended up giving me the finance at 2.5%. I think those days are behind us, though. It's more like 4% today.

So, they will pull all kinds of tricks out of their repetoire. That's their nature. You just stick with your plan and your script. Remember, you're going to end up walking out when they won't go any lower just to test them to see if they're serious. You are always in charge. They have their tricks; you have your feet. If they let you get off the property, you can be sure you have THAT dealer's nearly rock-bottom price. You are still in charge and can go right back. Even when I do that, I still try for another couple of hundred lower. Sometimes they just get tired of "dancing" and say: "OK. We'll split the difference with you. You come up $100 and we'll drop $100." You know you're close when they say that.

As a side note: I end up buying the cars for my friends and family. Many of them hate buying cars because of the nonsense. I LOVE it. I repeat: it's just a game. It's not the Treaty of Versailles.

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Old 09-14-2004, 01:00 PM
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First thing is to get an 05 model. Read the vibration thread about the problems than many are experiencing with the 04TL.
Old 09-14-2004, 01:02 PM
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Also keep in mind how important dealing with the local dealer is to you. While hopefully the Honda/Acura reliability makes this less of an issue, if something unusual comes up down the road, you will be in a better position to ask for additional consideration if you had purchased and serviced at a local dealership (assuming that the local dealership has a good reputation in the first place).
Old 09-14-2004, 01:59 PM
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some thoughts

Chris,

First of all, other than taking the test drive, you should not step foot in the dealership, and should only deal with the sales/fleet managers. Do your research as listed in other posts and create a fax listing your model, desired colors, etc. You should state that you are looking for the best deal, and are checking multiple dealers.

A good strategy is to wait until about 5 days before month's end, then fax your doc to the sales managers (n>8-10, if possible). Then wait. You will be surprised at what you find. What Edmunds, et al. don't tell you about are hidden spiffs that sales managers get based on volume. For example, if a guy has sold 9 cars and he is spiffed only at 10, he makes money on the other 9 even if he sells it to you at his "cost". He will want to give you a good price in that situation because he knows you are shopping elsewhere.

Good luck

S

p.s. Don't fall for the "what is it going to take to win your business" BS. Just ask them to give you their price. Some will play some will not.
Old 09-16-2004, 09:33 AM
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2004 vs. 2005 and the dealers

Ok, I got my dealer talked into $34,200k for a 2004, AT, w/Navi, Antracite, trunk tray, all weather mats, wheel locks, and splash guards. So the protection package and all weather mats...

He said he'd give me $1400 off MSRP, split the price of the protection package/all weather mats, but there were some charges for having the car trucked in, and some other accounting fee? Something...like that. But $34.2k still sounds high to me for a 04' which is going to lose about $5k depreciation the second I take it off the lot.

I'm not one who usually trades in after 3 years, so it might not be a big deal to have that depreciation that quick on an 04', but would it be worth it to me just to get the 05' and try to talk him into $1500 over invoice? Or something?

I told him I was going to think about it for a few days, and he called me this morning and left me a message saying "Call me, I think you are going to be happy with my deal". He is in the internet sales dept, but he still seems like a lot salesman...

Chris
Old 09-16-2004, 09:54 AM
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Originally Posted by ChrisMc73
Ok, I got my dealer talked into $34,200k for a 2004, AT, w/Navi, Antracite, trunk tray, all weather mats, wheel locks, and splash guards. So the protection package and all weather mats...

He said he'd give me $1400 off MSRP, split the price of the protection package/all weather mats, but there were some charges for having the car trucked in, and some other accounting fee? Something...like that. But $34.2k still sounds high to me for a 04' which is going to lose about $5k depreciation the second I take it off the lot.

I'm not one who usually trades in after 3 years, so it might not be a big deal to have that depreciation that quick on an 04', but would it be worth it to me just to get the 05' and try to talk him into $1500 over invoice? Or something?

I told him I was going to think about it for a few days, and he called me this morning and left me a message saying "Call me, I think you are going to be happy with my deal". He is in the internet sales dept, but he still seems like a lot salesman...

Chris
Seems pretty high - wait him out until the end of the month, while you check out other dealers...Good luck.
Old 09-16-2004, 11:03 AM
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Re-read my post...

Originally Posted by ChrisMc73
Ok, I got my dealer talked into $34,200k for a 2004, AT, w/Navi, Antracite, trunk tray, all weather mats, wheel locks, and splash guards. So the protection package and all weather mats...

He said he'd give me $1400 off MSRP, split the price of the protection package/all weather mats, but there were some charges for having the car trucked in, and some other accounting fee? Something...like that. But $34.2k still sounds high to me for a 04' which is going to lose about $5k depreciation the second I take it off the lot.

I'm not one who usually trades in after 3 years, so it might not be a big deal to have that depreciation that quick on an 04', but would it be worth it to me just to get the 05' and try to talk him into $1500 over invoice? Or something?

I told him I was going to think about it for a few days, and he called me this morning and left me a message saying "Call me, I think you are going to be happy with my deal". He is in the internet sales dept, but he still seems like a lot salesman...

Chris

He's high. I paid less than that for the same thing, including the "protection package" back in April. Remember what I said about the bogus fees? That includes an "accouting fee". It's bullshit. Charges for trucking car in? Have him "eat it". It's part of the cost of doing business. Not your problem.

When he's talking discount, make sure it's off the MSRP or Main Sticker ONLY- not all the garbage the dealer adds on. Just say "no" to that stuff. As I said, if he splits the cost of the protection package with you, he's still making money as it costs him less than $100. Anything over that is additional profit.

You shouldn't pay more than $33,000 including EVERYTHING but sales tax and license/title.
Some people have paid less. You should have started much lower than that so you could gradually come up to around $33,000.

He smells blood and he's going for the jugular. <playing Jaws theme>

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Old 09-16-2004, 01:23 PM
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Ok Xpditor...

He's already saying what is it he needs to do to earn my business...

So what do I say now that I'm in this spot? $33k, drive off...thats all that will earn it?
You didn't reccommend me anything on the 05', according to the autospies.com video I saw on here, its probably worth it to me to get an 05' so I don't have instand $5k depreciation...right?
Old 09-16-2004, 02:01 PM
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Chris,

The *initial* offer I got earlier this week from 3 different dealers in Texas was (a little) lower than yours. I still think they are asking about $1K too much for the car. I'm going to wait another week and fax them an offer that is 1K lower, and tell them to take it or leave it (I'm going to give them $1K *total* profit on the deal. Pretty good for an end of the model year, I think). If they leave it, I will ask them to contact me when they are ready to deal on 05 models. They can have my business then, *if* I haven't already bought elsewhere.

--Mark
Old 09-16-2004, 03:34 PM
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So are you guys thinking that $33k + TTL, is a good deal for 04' end of the year model?
Old 09-16-2004, 06:09 PM
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I told him many people I talked to who bought the same care, with same options, got it for 33K no more...some were less, and he said he wanted to see if I could find people who would fax me the inovice...to prove it. He said too, right before we hung up, if I offer you 33.5k now drive off, would you take it and I said let me see if I can find the invoices...
Old 09-16-2004, 06:25 PM
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If my numbers are right, then a 5AT with Navi should cost the dealer $31042 (includes hold-back and destination but not TTL). For a year old car, I think $1K profit (32042+TTL) is fair. That is a 3.3% profit for me taking it off of their hands. If they aren't willing to do that, I'm going to wait for an end-o-the-month "special" on an 05.

--Mark
Old 09-19-2004, 05:28 PM
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Not your job...

Originally Posted by ChrisMc73
So are you guys thinking that $33k + TTL, is a good deal for 04' end of the year model?
It's not your job to get "invoices" from other customers to show him. There is nothing in it for you to educate him as to what other customers are paying. That's just what his Sales Manager told him to say to call your bluff- in case you were bluffing. But you're not.

When he says "What can I do to earn your business?", that is his invitation for the next dance. He wants you to come back to him with another price- other than your openers or earlier price. For instance, you would say: "You can sell me the car for $31,500 (or whatever number you are at- knowing you are still probably too low! But that's OK because he is still TOO high. You are both working towards the middle. That requires movement on BOTH sides.

If he said "Would you take it for $33,500 drive out the door?" he is asking you a question - not making a counter offer. In the trade, it's called a "would you take". I like to respond with a question: "Would you sell it to me for $33,000 out the door?" By the same token, you are not making an offer either, you are asking a silly question just like he is.

All that said, YES: If he would sell you the car for $33,500 out the door (EVERYTHING INCLUDED, Sales Tax, Tag Transfer, Bogus Fees---EVERYTHING.... that's a good deal assuming you live in a state that has sales tax) That means you would be paying about $31,500 for the car (approx) and that's not bad for a NEW 2004 TL with Navi.

And YES, I would seriously consider a 2005 if you could get it for within $2,000 of that same price.

If you want an internet price for comparison, PM me and I will give you the name of an internet sales person who will send you one from Florida. I will also give you the dealer's website where you can examine their inventory for colors and equip. They have about 50 2004 TLs of all kinds. Even 6MTs with Navi. That will give you a good basis for comparison.


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Old 09-20-2004, 11:03 AM
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Ok, so what did you do on the Extended Warrenties? I purchased the extended, GAP, The Dent one, and the bottom one on that sheet they printed, so the top one and bottom 3...

I think this is where they got their money back, cause I had them down to 33K...
And I got screwed...
Old 09-20-2004, 12:44 PM
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Best laid plans of mice and men offtimes go..... south.

Originally Posted by ChrisMc73
Ok, so what did you do on the Extended Warrenties? I purchased the extended, GAP, The Dent one, and the bottom one on that sheet they printed, so the top one and bottom 3...

I think this is where they got their money back, cause I had them down to 33K...
And I got screwed...
Chris: I don't buy cars from insurance agents and I don't buy insurance from car salesmen.

I feel I am repeating myself. The price you negotiate HAS TO INCLUDE EVERYTHING or it means nothing. If they give you something with one hand and take it away with another, what have you gained?

I've never even heard of some of the things you mentioned "Dent One"?? What is that? (I don't think I want to know.) I DID say that you should pretend to be interested in those things in order to get a good price on the car. The implication was that you should not really buy them. There is nothing the dealers sells from the F&I (Finance and Insurance) Guy that you can't buy direct and cheaper.

You haven't told me your final numbers so I don't know if you got screwed or not. If you did, you wouldn't be the first who didn't stick to the plan. But, you do so at your own peril.

You know that you have three days to cancel any deal (or part of the deal) if you decide to do so, right? But you have to aggressively stand up for yourself and your rights. They are not going to do it for you. Their task is to relieve you of as much money as possible by a plethora of tricks, smoke, and mirrors. While you're drooling over the TL, that hand in your pants is only reaching for your wallet.

It's not a life or death thing. Whatever you paid, it's a lot less than you would have if you had not done any research or if you had no plan. And, bottom line, you get a wonderful car that you will have for a long time.

XP
Old 09-20-2004, 01:14 PM
  #27  
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I have to say that I agree with everything Xpditor just posted.
Old 09-20-2004, 04:34 PM
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I just pulled out the piece of paper the sales guy at the dealership gave me the other day while I decided what I was going to do with regard to an 04 TL. It's without the Nav system and it was $30,495 plus $2668 tax for a total of $33,163.
He knew I was serious, I didn't want to play any games and I told him right off the bat that I wanted to work with the invoice price, not the MSRP. The MSRP was about $35,000 (I don't remember the exact number). There was nothing confrontational about it, it was just a matter of letting him know I was serious about buying and he worked with those numbers right away.
My wife test drove the car with the salesman in the front seat and me in the back. I wanted her to open it up, but she was too busy listening to the salesman talking about the benefits of the XM radio (while he had it on, mond you), probably the least most important thing to talk about. On the road we were on, the most she did was about 50. We like the car and went home to think about it.
This is the car I wanted to look at months ago, but we're in New York and we don't really have anything for the snow, so we got the Cadillac SRX first. Now it's time for the sedan and this is what I wanted to check out becasue of all the great reviews.
After the test drive, I found this forum and found out about all of the vibration problems (now I'm thinking this is why he had the radio on). I just left a message for the sales guy telling him I'm going to wait for the 05's to come out and see if that issue is resolved.
Anyway, 33k plus tax seems too much. Without even talking about it, this guy is willing to do less than that right away, and he is not the only one because I also received an email from another dealer offering $30,600 selling price for anything in stock, and he has thirty of them.
Old 09-20-2004, 05:07 PM
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How much did you pay for gap? I just bought a TL 10 days ago and almost got screwed on the gap insurance. Assuming you financed, you only need gap for the time when you owe more than what your car is worth (usually 2-3 years) not the 5 years that the car place almost had me on. Furthermore, I got it for $29/year from my current auto insurer (liberty mutual) which is much cheaper that the $500 policy they almost sold to me. Not every auto insurer carries gap but some do and there are many places on the internet that have it much cheaper than any car salesman will. You can still cancel it. You just have to resign the loan paperwork. That is exactly what I did. They call all that warranty and insurance stuff "back-end" items for a reason.
Old 11-25-2004, 08:29 AM
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Caveat Emptor

"Back end" Exactly. That's where they want to give it to you.

Dealers will often end up making more money on the Finance and Insurance, Extended Warranty, than they do on the car itself.

There is also the psychological aspect. Once you have made the decision and signed the order for the car, you are in a post-orgasmic recovery period. Your guard is down and they know it. That's when they turn you over (so to speak) to the F&I guy who is a better salesman than the car guy. A good F&I guy is worth his weight in gold to a dealership. When you step into his office, keep your eyes and ears wide open. It wouldn't hurt to take a tube of KY with you.

Keep in mind that there is nothing that the F&I guy sells that you couldn't get later after you have had a chance to think about it and comparison shop.
Old 09-04-2005, 01:20 AM
  #31  
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So, what would be a good price on an '05 now? I am looking to trade my TSX in on a TL later this month....
Old 03-27-2006, 09:53 AM
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Originally Posted by Gepetto
Chris I can't tell whether you're looking for exact prices or general guidelines. If the former, I paid $32.8 here in the midwest for an 04 5AT Navi.

If the latter, well. . .no one-size-fits all answers here, but here are some rules of thumb.

1. Start the negotiation with the invoice price, not the MSRP. (Almost) nobody pays that. The invoice on your car is around $32 and change. Now. . .how much above invoice should you pay? That depends on your part of the country and the whole supply/demand thing, but you can always try to use forums like these to beat the dealer down. A guy from NY posted his purchase agreement a while back, and I used it with my dealer here in Missouri. He didn't match that price (nor did I really expect him to), but I used it to call his bluff when he said that these cars only sell a few hundred below MSRP in the best of times. Forums like these can even be helpful in your area, if you do a search. Information = power.

2. Remember the dealer gets about a 3% holdback from Acura. So, he can sell you the car at exactly invoice and still make around $1k. They might try to BS you about how the holdback only covers interest on the loan they get to buy cars from Acura (yes, they buy the car from Acura, and you buy it from them). But have you checked interest rates lately? To incur a finance charge of $1k over the month or so it will take them to sell the car, they'd be paying about 40% interest annually. In reality they're probably paying closer to 2-3% (or less). Nowhere near $1k.

3. Try to avoid trading your car to the dealer. You can get more by selling it yourself or to a Carmax if they're in your area. I mention this because if you trade to the dealer, they may try to get you into a "let's work on the trade difference" mentality, in which smoke/mirrors are used to obscure what you're really paying for the new car. They may sell you a car for $30k, but if they give $3k less on your trade than it's really worth, you just paid $33k for the car. Now, there's nothing wrong with trading to the dealer so long as you know what your car is worth before you walk in the door. I highly recommend getting a Carmax appraisal (free!) before going in. If there's no Carmax around, comparable classifieds (adjusted downward for the fact that you will get more selling to an individual vs. a company) can help too.

4. NEVER let the dealer get you into the "payment" mindset. They may say "well tell us how much you want to pay every month and we'll get you there." This, when combined with #3 above, becomes a powerful tool of obfuscation for the dealer, making it nearly impossible for you to tell what you're actually paying for the car. My brother in law negotiates based on how much he wants to pay every month. SUCKER! This is so obvious it's painful: there's a big difference between a 2-year loan and a 6 year loan. They will also probably try to hose you on the interest rate. Like #3, get comparables from your bank or other lenders in your area for a loan.

5. Be fair, understand they need to make money (sounds like you get this). Fair is somewhere between being a complete asshole (which works effectively for some people) and a complete sucker (like my brother in law). By this, I mean mainly to keep the items above in mind.
Great advice!

Start negotiating after you apply the dealer holdback. For about $14 you can get pricing report from consumer reports. Also ask a dealer what are the doc and other fees, before negotiating.

....
Old 06-23-2007, 11:47 AM
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Great thread. I saw you mention invoice prices; but I'm shopping for a used car. I take it invoice is out the window with this, there is only window-sticker price.

They have:
'04 w/ navigation w/ 35K miles for $25,995
'05 w/ navigation w/ 53K miles for $24,995

There is another dealer w/ similar cars non-navi starting me at 22,995 (so $1K less...figure $1K for navi).

What should opening offers be on my side? What's the ACTUAL price I should be working towards for the car? It seems 18-19-20 would be good, but he's going to slap me for opening with $16K. LOL
Old 06-25-2007, 10:46 AM
  #34  
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Originally Posted by Xpditor
Wow! A simple question but books have been written on the art of negotiation.

The first step is to educate yourself on the figures. You have a computer so it's not that difficult. Check www.carbuyingtips.com. Also www.edmunds.com and www.intellichoice.com. Determine what the "Dealer Invoice" is. Understand that isn't his bare "cost" as there are hold backs from the factory and other hidden incentives late in the model year (now). Also know that your best buying time is the last few days of the month when they're trying to meet a sales goal.

My own policy is to consider the MSRP as the dealer's starting price. Then, based on my research, I determine what price I would happily pay for the car if I could get it for that. For example: MSRP= $35,220. I would be happy to get it for $ 31,500. I would then, assuming they had a car I wanted or had one on the way, offer about $28,000.

Of course this is an unreasonable number. But NO MORE unreasonable than the MSRP they are looking to get. Both numbers are starting places and "invitations to the dance". The idea is that if they come down (they will) and you come up (you will) in equal increments, you should end up in the middle somewhere around your goal of $31,500.

They don't open with their final offer and neither should you. You will rock them back on their heels with that number and they will go through a well rehearsed righteous indignation act. That's the time to just sit and stare and listen. They will often reveal lots of good information while in that state of shock. At the appropriate time you can say "You have your opening numbers and I have mine. Now let's get down to business. You made an offer (MSRP) and I made a counter-offer. It's your turn."

It is also important to realize that they are not going to be offended (although they might act like it). NOTHING offends a good salesman. They are trained to answer your objections one-by-one and to try and close the deal at the highest price possible. But, close they must or they make no money. Half a loaf is better than none.

Also, don't be embarrassed or shy as it is a game. They play their role; you play yours.

My own policy is that I NEVER buy a car on the first visit. I get them as low as I can. When they won't move any lower, I walk. This is a test. If the salesman and the T.O. guy (take over) let's me drive/walk over the curb, you can be pretty sure they are at that low point. They don't let a live prospect walk when they know the competition down the road can sell you a few hundred cheaper and get the deal. Then, if I'm a block away and there's no one chasing me... I may turn around and go right back... or wait until the next day. I would then come up a little from my last price to let them know the game is still on.

They must qualify you as a bona fide buyer for this all to work. It's good window dressing to have a checkbook conspicuously sticking out of your shirt pocket. I also had a license plate in a file folder (see www.carbuyingtips.com for more about "the folder").

This "qualifying" is an informal sizing you up to make sure you're a legit prospect with both the desire and ability to buy.

When you're down to bare bones and getting close and they won't move anymore, that's the time to start asking for freebies. Splash guards, trunk tray, wheel locks, tint or whatever. Just remember that all these things are marked up at least 100% from their dealer cost. What they are pimping as a $400 "protection package" probably costs the dealer $100.

Lastly, let them know up front that all of your negotiating numbers MUST include freight, dealer prep, dealer "fees", document fees, etc. The only add-ons to the number you agree on is to be for sales tax and the state license fee. You must be clear with them about that and get them to acknowledge it. They will moan and groan that "Even if I bought a car here, I would have to pay the document fees!" In a word: bullshit! If they must show those on the order, have them add the same amount to your discount. The point being that you let them know that they are NOT going to add it on at the last minute after you have agreed on a price. Let them know you think it is sneaky and underhanded and you want it included up front.

Buying a car can be a rewarding challenge if you arm yourself with knowledge about the car and have a negotiating strategy and then stick to it. Remember that you are in their court and they do this stuff several times a day. Don't worry about hurting their feelings. They are the shark; you are the tuna. Be an informed tuna. And have fun. Sometimes the tuna bites the shark. And sometimes everyone goes away whole and happy.

When you reach a deal you both agree on, give a $500 deposit on a CREDIT CARD so you can reverse the charge if they pull any hanky-panky. (They will ask for $1,000) Then, get a copy of the order signed by the dealer's authorized representative. They want to nail you down, but they are reluctant to be nailed down.

GOOD LUCK! And good hunting! You're going to love your new car!

XP

That's an excellent script. I've been buying new and used cars for 20 years and that's the one I follow the most. (Except for the credit card thing at the end. I've never heard of that but it seems a sound idea.)
Old 06-25-2007, 03:13 PM
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Some of these guys have given great info.
Old 10-17-2007, 04:10 AM
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so im in the market for a late model 07. I went into Acura of North Scottsdale couple days ago to negotiate two different TLs. One was a new 07 NBP with nav, front lip, decklid spoiler, wheel locks, trunk tray listed for somewhere are $38,500 and the other was a used 07 TL-S alablaster silver with taupe interior with 13k miles. The TL-S was listed at $37+, but i saw an internet special for $32,993.

Heres the breakdown from Edmunds:

07 TL w/ Nav
Invoice(including destination): 33,807
What others are paying (including destination): 32,995.

NEW 07 TL-S
MSRP: 38,125
Invoice (including destination): 35,638
What others are paying (including destination): 34,871

USED 07 TL-S w/ 13k miles
Trade In: 31,303
Dealer Retail: 34,715 (pretty much only $3500 depreciation for 1 year and 13k miles!)

After going on a test drive with both cars, i started negotiating with the top salesman supposedly of the dealer. Im pretty new at buying cars and probably made a few mistakes. But anyways, this is what happened.

I didnt even want to negotiate for the black TL because i didnt want to pay the extra 1600 for the lip spoiler or decklid spoiler when i could pretty much get a type-s new for about 500 or so more.

So i opened offered of 30,000 for the the used type-S, he went back and offered 32,000, so i counter offered for 31,000 and he said the final selling price was 31,500.

31,500 out-the-door including tax,title,license,doc fees would be 35,040. I figured thats too expensive and left. What do you think is a reasonable final selling price for the used type-s? I was hoping to get it $32K out the door. is that even realistic or possible? Ive seen that used type-s on the lot now for about a month now.

I would also be interested in a new 07 w/o nav. Acura has a $2500 marketing support for TLs. So looking at edmunds....

Invoice (including destination): $31,518
What others are paying (including destination): $30,693

So i figure this...

30,693-2500=28,193

8.1% sales tax = +2284
1.5% title and license = + 423
Out the door: 30,900 or somewhere around there possible for a base TL w/o nav?

Sorry for it being so long, but im really interested in the TL now. Any help would be appreciated

P.S. He offered me 32,682 OTD for a base 07 TL w/o nav. But the only colors he has left was the red and the ugly beige lol.

Gonna go to the other acura dealer tomorrow to see if i can get a better deal, but im in love with the TL-S now lol
Old 10-17-2007, 07:37 AM
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8.1% sales tax? Whoa baby! Nothing wrong with walking out. You still have your money. You can take your time and negotiate. Try going back on the last days of the month when they need to hit their quota.
Old 10-18-2007, 08:26 PM
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You should check out the 3G Sign-In thread. I definitely think you are better off buying a new car than the used one (for the money difference - might as well buy new for a little more) Anyways, check that thread (go to last page and go in reverse order of pages) you will see what people are paying for the new 07 TL-S. I got a 08 TL-S for 500 over invoice including all season floor mats and a trunk tray.

Don't rush into buying it, as the previous poster said, you can always wait until the end of the month when they need to fill their quota..that is unless they have already filled their quota and anything extra is just a plus for them.

Good Luck!

btw..good choice with Edmunds..that's what I always use
Old 10-23-2007, 12:00 PM
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The 30,694 probably already has the $2500 marketing support baked into the number. Thus, you are counting the corp. contribution twice.
Old 01-19-2010, 12:07 AM
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Anyone Talk Price Around Here?

Looking to buy a 2010 TL MT6. I'm a longtime BMW owner, but we have owned an Integra in the past and it was a positive experience. The TL is attractive due to it's outstanding value. it's like getting a 5-series for the price of a 3-series.

Being a BMW guy, I'm a bit ignorant about Acura pricing. Right now I'm aware of the 1.9% financing and the $2000 dealer cash. I'm getting quotes at $38,000 for the SH-AWD, Tech, HPT with 6MT. I can get the same car with 18" for $36,800. Good prices or can I do better? Is this the best time to buy or does Acura come up with better deals later? Also, other than the Advance Package is there any major change coming in 2011?

BTW, can anyone explain why Acura, a proponent of high tech does not offer something like BMW Assist or GM On-Star? My other two gripes are no electric folding side mirrors and no fold down rear seat. That's it. otherwise, the TL is hard to beat with the Manual 6 speed.


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