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Greg Hartman

How to know when you got a deal on a new truck?

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Greg Hartman

OK, to follow up on the Ford Ranger thread, how do you know when you've gotten the best possible price on a new vehicle?  Of course, you want to do a good bit better than MSRP, but exactly how much better for a given vehicle?  For example, is there some source that tells you what the dealer pays for the vehicle?

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Craig Doherty

Kelly Blue Book online will give you dealer cost on a particular new vehicle which is some what helpful. However there are often incentives from manufacturers that reduce dealer costs.  Shop dealers using the internet and phone.  Don’t worry about buying local service departments are separate income centers and don’t care where your vehicle came from.  End of the month, end of the model year, slow months like January and February, can all help you get a better deal.

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Mike Connally

I agree with waiting for the end of a model year and buying at the end of the month. 

I bought a new 2018 Silverado last year. It was the last one at the dealer and I bought it on the last day of the month. 

Sticker price was $49k. I paid $32k. 

$17k in incentives. 

I couldn’t have bought a used two year old truck for that price. 

 

F0BDA5E6-99E9-411E-8105-E17FC3D9BB3D.jpeg

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406dn

Also,, don't be afraid to walk away from a deal.  

 

Your opening offer should be low enough that you fully expect it to be rejected. Not so low as to be a joke, but low. After they counter,,,,tell them you have to think about it,, get up and leave. It is likely they will try to get you to stay at the dealer,,just tell them their price is more than what you were considering and that you are going home to think about it. Just let it lay,,, they will call,, at least they always have with me. When they do call,, they will have a better offer than the previous one. Then it is on you to decide if that price is good enough, or counter with another offer, or to just continue looking. If the sale falls thru,, you now have a better idea where a fair price is.  

 

Don't tell them what monthly payment range you are considering. Stick to bargaining over the price of the vehicle. When you tell them you can afford $700/month,,,, their calculator inside their head gives them several sale's strategies.  They will come to you with a price that will fit that monthly payment.  Why are so many car loans written for 72 months?? 

 

 

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C.J.L.

If you think you're getting screwed.....you probably are.  If you think you're getting a good deal......you are.  

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chilly460

As stated, you can find invoice prices online.  My F150 stickered for $43k, bought for $31k as it was year end closeout.  Also as stated, I bought it for less than prices I was seeing for similar used trucks.  Dealers also get a 3% buyback when the vehicle sells, so there's some meat on the bone under invoice too.  

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Brad Eden

We always create competition between two dealerships when purchasing a new vehicle. The local Nissan dealership couldn't match price or a particular package with a dealership over an hour away, so JAnn bought her Rogue from the further one. She still had no issue using the service dept at the local Nissan dealership, as someone mentioned.

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Mike Connally
2 hours ago, Mike Connally said:

I agree with waiting for the end of a model year and buying at the end of the month. 

I bought a new 2018 Silverado last year. It was the last one at the dealer and I bought it on the last day of the month. 

Sticker price was $49k. I paid $32k. 

$17k in incentives. 

I couldn’t have bought a used two year old truck for that price. 

 

F0BDA5E6-99E9-411E-8105-E17FC3D9BB3D.jpeg

I should have added that this dealer was 65 miles from my home. We emailed back and forth for a while. When I stopped responding they asked what it would take. I told them to send me a solid offer that would get me to make that long drive. 

Easiest new car purchase I ever made. 

Part of the deal was $1k off for financing with GMC. at a high interest rate. I made the required 3 payments and then wrote a check to pay it off. 

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GANGGREEN

I do what Brad's suggesting, but I'm not scared to travel hours to purchase a car.  I live in the sticks and I simply refuse to deal with a dealer an hour away because he might be the closest (even if they'll never match a decent price and offer lousy service).  I purchased my Tacoma 3.5 hours away.  Now admittedly, I have a brother who lives in that area, so had I ever needed warranty work or something, at least I'd have a place to stay and a taxi service.  I also start at  home by researching the exact vehicle that I want with a service like Autobytel, which will show not only the invoice price but any other dealer incentives.  They typically give a range of prices that are "great deal", "good deal" or "acceptable deal" and I've never purchased a car where the price I paid wasn't in the "great deal" range, even for highly desired cars that don't get discounted much (I currently drive a Toyota Tacoma and a Toyota Avalon, neither of which are greatly discounted very often).  I think to begin with you start by telling yourself that you simply wouldn't pay anything more than 85% of MSRP on ANY vehicle and then do your research from there.

 

The trick is to be well-educated about the vehicle before setting foot on the lot.  None of us expect the dealer to take a loss on a car (they might on a leftover or something), but none of us want to be a pigeon either.  If you know what the value of the vehicle is before going in, they simply can't buffalo you or take advantage and it doesn't take the sales manager long to figure out that you won't be taken advantage of (the salesmen can be another story).  

 

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Greg Hartman

Thanks for all the input, gents!

 

I negotiate multi-million dollar M&A deals for a living, usually with big NY law firms on the other side, so the process of negotiation is not unfamiliar or intimidating to me.  My firm also represents a number of car dealerships, so I'm familiar with internal dealer incentives, floorplanning, buybacks, etc.  Finally, I would pay cash for any vehicle, so monthly payments are irrelevant.  I wasn't really asking how to negotiate - I was just asking what outside reference sources exist that a buyer can use as a sanity check when negotiating.  

 

I wish vehicles were sold like toothpaste or bread - there's a posted price - it costs what it costs.  The only shopping might be between stores on a given day.

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Clueless1

Get a lab. 

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Greg Hartman
3 minutes ago, Clueless1 said:

Get a lab. 

 

I'm "clueless" about this response... 😁

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sharptail grouse
10 hours ago, Greg Hartman said:

OK, to follow up on the Ford Ranger thread, how do you know when you've gotten the best possible price on a new vehicle?  Of course, you want to do a good bit better than MSRP, but exactly how much better for a given vehicle?  For example, is there some source that tells you what the dealer pays for the vehicle?

My benchmark on whether I got a good deal is whether or not I have to spend money repairing it.

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406dn
9 minutes ago, Greg Hartman said:

 

I wish vehicles were sold like toothpaste or bread - there's a posted price - it costs what it costs.  The only shopping might be between stores on a given day.

 

Nothing the price of a car in the history of man has sold for only one set price.

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406dn

Another consideration is resisting all of the add ons dealers put on vehicles. Gel coats, Scotch Guard, bed liners, etc. Some dealers are worse than others about this. It is worth the time it takes to find a dealer who does not do this. The decision to put on a gel coat or grill guard should be made individually by the buyer. 

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