7. Financing Questions go here How To Negotiate A Great Deal On Car Financing!!! ---------------------------------Formula------------------------------------------- MSRP= Sticker(includes Dest. Charge) Invoice= Can be found on Edmunds.com(include options) Rebates= Can be found on Edmunds.com Holdback= Can be found on Edmunds.com Est Tru invoice= Invoice - Rebates - Holdback tax= ?% x True Invoice Tags= whatever your states charges Low ball offer= True Invoice + tax/tags - $2,000 Target Price= MSRP - rebate or Sale price - Low ball offer / 2 + low ball offer(this is basically the formula I use) ---------------------------------Formula-------------------------------------------
---------------------------------------per request--------------------------------- Confidence is your biggest asset! If you dont believe you are going to pay invoice they will smell your fear like a pack of wild dogs. The car business is hurting right now. Dealers are happy with their "holdback". Its the salesman that are starving. STOP NEGOTIATING WITH THE SALESMAN! Its a fact that the average car salesman only sales 8-10 cars per month. Its also a fact that a "flat", the money a salesman is going to make on a new car sales with no profit(invoice) is $50-$100. So do the math thats only $800-$1000 in commission per month. Thats why dealer are always hiring salesman. Its also why salesman are constantly getting fired. GET THE SALESMAN ON YOUR SIDE! Tell him up front he's not gonna make any money on you, this will be an invoice deal. Tell him you'll slip him a $100 after the deal if you get your price. So when he goes up to the "salesdesk", he's fighting for you. When the salesman comes back to you with numbers on the paper, they call it an "a" sheet. Cross it out with a big "X", flip it over right your number on the back, next to it write "T/T out the door", then underline it. The first number you write should be at least $2000k below invoice. His manager will either send someone over or come his self. This is a good sign it shows that you werent talking to a "closer". He might even write a note, asking where r you getting your numbers. If this happends, write "I was thinking the same thing about you numbers". Typically his second number will be $2000 above invoice. If it is, you write," Split the difference, with T/T, out the door" They usually will jump at it.
What I am telling you is based on 5 years in the business and personal purchases.
Tips: DONT BE SCARED TO WALK AWAY. CONFIDENCE IS KEY. DONT DRIVE THE VEHICLE FROM THE DEALER YOU ARE BUYING FROM. DONT DISCUSS CREDIT, FINANCE, INTEREST RATE, ETC BEFORE YOU GET INVOICE PRICING. (THESE ARE BUYING SIGNALS, THEY WILL SMELL IT LIKE BLOOD TO A SHARK)
DONT LISTEN TO YOUR FRIENDS. EVERYBODY CLAIMS THE GOT A GOOD PRICE. MOST DONT KNOW WHAT INVOICE IS. DONT ANSWER ANY QUESTIONS DURING NEGOTIATING FOR INVOICE. (YOU MAY GIVE AWAY A BUYING SIGNAL WITHOUT KNOWING)
SHOPPING DURING THE LATTER PART OF THE MONTH CAN WORK TO YOUR ADAVNTAGE. (DEALERS HAVE A PROJECTED SALES IN UNITS THEY NEED TO MEET, SO DO BANKS. THEY TYPICALLY WILL WORK BETTER DEALS AT THIS TIME TO MAKE THEIR MONTH)
IF YOU SUBMIT YOUR EMAIL ADDRESS TO A DEALERS WEBSITE LET THEM KNOW "NOT TO CALL YOU, NOT TO NEGOTIATE, YOU WILL ONLY ACCEPT INVOICE W/TAX&TAGS, IF THEY DO CALL YOU, YOU WILL NOT DEAL WITH THEIR DEALERSHIP, IF THE EMAIL YOU ANYTHING OTHER THAN INVOICE, YOU WILL NOT DEAL WITH THEIR DEALERSHIP" THIS IS THE MOST EFFECTIVE WAY TO NEGOTIATE, AS OPPOSE TO IN PERSON.
THEY KNOW IF YOU NEGOTIATING THIS WAY YOU ARE A SERIOUS BUYER.
THEY WANT YOU IN THE DEALERSHIP SO THEY PLAT THE "GAME" WITH YOU. ITS SET UP TO WORK AGAINST YOU. LIKE A CASINO THE HOUSE ALWAYS WINS.
MOST DEALERS HAVE THE "NEGOTIATING" TABLES IN THE MIDDLE OF THE DEALERSHIP OR OPEN OFFICES. (THIS CREATES A "BUYING FRENZY")
IT HELPS TO HAVE YOUR FINANCING ALREADY DONE BEFORE YOU SHOP FOR THE CAR. ---------------------------------------per request--------------------------------- *THIS IS SERIOUS PEOPLE. READ THE THREADS FULLY BEFORE YOU POST TO THIS THREAD. IT REALLY SHOWS WHEN YOU POST WITHOUT READING THE THREAD FULLY.*
Message edited by: mrblackpcs2 on 2005-08-15 05:25:52 CDT
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http://www.Edmunds.com/advice/incentives/holdback/index.html Make Holdback Acura 3% of the Base MSRP Audi No holdback BMW No holdback Buick 3% of the Total MSRP Cadillac 3% of the Total MSRP Chevrolet 3% of the Total MSRP Chrysler 3% of the Total MSRP Dodge 3% of the Total MSRP Ford 3% of the Total MSRP GMC 3% of the Total MSRP Honda 2% of the Base MSRP HUMMER 3% of the Total MSRP Hyundai 2% of the Total Invoice Infiniti 1% of the Base MSRP Isuzu 3% of the Total MSRP Jaguar No Holdback Jeep 3% of the Total MSRP Kia 3% of the Base Invoice Land Rover No Holdback Lexus 2% of the Base MSRP Lincoln 2% of the Total MSRP Mazda 2% of the Base MSRP Mercedes-Benz 3% of the Total MSRP Mercury 3% of the Total MSRP MINI No Holdback Mitsubishi 2% of the Base MSRP Nissan 2% of the Total Invoice Pontiac 3% of the Total MSRP Porsche No Holdback Saab 2.2% of the Base MSRP Saturn 3% of the Total MSRP Scion No Holdback Subaru 3% of the Total MSRP (Amount may differ in Northeastern U.S.) Suzuki 3% of the Base MSRP Toyota 2% of the Base MSRP (Amount may differ in Southern U.S.) Volkswagen 2% of the Base MSRP Volvo 1% of the Base MSRP
When calculating holdback, use the following guidelines.
If a holdback is calculated from the:
Total MSRP: consumers must include the MSRP price of all options before figuring the holdback. Base MSRP: consumers must figure the holdback before adding desired options. Total Invoice: consumers must include the invoice price of all options before figuring the holdback. Base Invoice: consumers must figure the holdback before adding desired options.
Message edited by: Virgil27 on 2009-03-03 15:53:05 CST
People, mrblackpcs2 is the man! I read the first 5 pages of thread closely and researched for 2 month,
Toyota Rav4 auto AWD MRSP: 22583 Invoice (on dealer's website): 20783 Price paid: 20555 including all tax/fees out the door. The price 20555 was the actual invoice price on Edmunds.com
I emailed 5 local dealership asking if they can give me the car for INVOICE (true invoice on edmunds.com) including T/T/fees. 3 responded, 1 with counter offer, 1 refuse to negotiate online, and 1 agreed.
The dealership with counter offer is the smallest. The dealership agreed is the 2nd in size. The dealership refuse to nego online is largest.
I went in to the 2nd dealership and they started playing games with me. Say the car I want was just sold to someone else. Want to sell me a identical car for $200 more. I got in my car and tried to leave, the sales guy ran out and say, please come back and I will give you the car. I say, I don't deal with liars. (it was Sun/27th 30min prior to the dealershp closing)
Next morning, I called the largest dealership and ask them to match the price and they did. (after been put on hold for 5 mit, guy said he need to do some math). I went in and the transaction was smooth. In and out in 2 hours. They did however, asked me to bring the email that has the $20555 offer from the 2nd dealership.
Overall it was a great experience, however, they did ran a credit check on me when I told them I am paying in cash. After I gave them my social, they assured me they won't run it but did anyways. I am really upset about that.If someone knows how to fight that, please let me know.
edit: The TMV on Edmunds was $208XX + tax. So if you read mr.blackpcs2's instruction closely. You will score a great deal.
Message edited by: mdrollas on 2005-03-01 21:14:36
Amigo2k said:990 for tax on 18k and 75 for the tags and title.
I still see this as I'm getting the car for 1000 under invoice. Meaning it is 17.5k for the car and about 1k for tax/title/tags.
Right?
TIA
Yes. You have a problem with buying for under invooice? Think about this....
MSRP: 19455 Base MSRP: 16615 2% of the Base MSRP = dealer holdback is $332 True invoice is around 17700 on an 18000 invoice Now factor in the regional and nationa incentives the dealers get just for selling the car. Lets say its 700-1000 so its possibe that car cost the dealer 16700 in true costs. What if you finance thru them. They get a kick back on that too.
so add in your t/Ts to that price = 17765 if you pay 18000 thay still make money
Message edited by: mrblackpcs2 on 2005-03-01 21:12:30
mdrollas said:People, mrblackpcs2 is the man! I read the first 5 pages of thread closely and researched for 2 month,
I emailed 5 local dealership asking if they can give me the car for INVOICE including T/T/fees. 3 responded, 1 with counter offer, 1 refuse to negotiate online, and 1 agreed.
The dealership with counter offer is the smallest. The dealership agreed is the 2nd in size. The dealership refuse to nego online is largest.
I went in to the 2nd dealership and they started playing games with me. Say the car I want was just sold to someone else. Want to sell me a identical car for $200 more. I got in my car and tried to leave, the sales guy ran out and say, please come back and I will give you the car. I say, I don't deal with liars. (it was Sun/27th 30min prior to the dealershp closing)
Next morning, I called the largest dealership and ask them to match the price and they did. (after been put on hold for 5 mit, guy said he need to do some math). I went in and the transaction was smooth. In and out in 2 hours. They did however, asked me to bring the email that has the $20555 offer from the 2nd dealership.
Overall it was a great experience, however, they did ran a credit check on me when I told them I am paying in cash. After I gave them my social, they assured me they won't run it but did anyways. I am really upset about that.If someone knows how to fight that, please let me know.
edit: The TMV on Edmunds was $208XX + tax. So if you read mr.blackpcs2's instruction closely. You will score a great deal.
Thats whats up!!! Can we get a PDF link of the email and some pics? So We beat edmunds by 300 plus tax/tags? How much was tax/tags?
mrblack, which email do you want? Do you mean the picture of the car?
Tax in Maryland is 5% and tag is $240. I am really shocked at the price too.
Here is my calculation.
$20555-500(customer Cash Back from toyota)-$350(manufatuer CashBack from toyota)-2% holdback on MSRP$22583 ($452) =19253 X1.05(md tax)+240tag+$100dealership process fee = exactly $20555.65
I know they have volume reward from Toyota but they didn't eat any of the manufactuer CashBack from toyota) so I was shocked.
btw, I think many of you can tell, I am really excited on getting a good deal like this evnthough this car is for my sister. Her friend bought an almost identical car 3 weeks earlier for $900 more.
Message edited by: mdrollas on 2005-03-01 21:23:55
mdrollas said:mrblack, which email do you want? Do you mean the picture of the car?
Tax in Maryland is 5% and tag is $240. I am really shocked at the price too.
Here is my calculation.
$20555-500(customer Cash Back from toyota)-$350(manufatuer CashBack from toyota)-2% holdback on MSRP$22583 ($452) =19253 X1.05(md tax)+240tag+$100dealership process fee = exactly $20555.65
I know they have volume reward from Toyota but they didn't eat any of the manufactuer CashBack from toyota) so I was shocked.
btw, I think many of you can tell, I am really excited on getting a good deal like this evnthough this car is for my sister. Her friend bought an almost identical car 3 weeks earlier for $900 more.
The email they sent you of the price. And pics of the car. That 900 difference can get bigger if her friend financed it.
Mrblack, do you think it is possible to purchase a Nissan 350Z Touring Edition (automatic) at or near invoice in New Jersey (especially considering that the weather has been crappy)?
NJanomaly said:Mrblack, do you think it is possible to purchase a Nissan 350Z Touring Edition (automatic) at or near invoice in New Jersey (especially considering that the weather has been crappy)?
All things are possible with skill and determination. That being said...I dont think its likely knowing NJ like I know NJ.
Read the threads (I know you didnt read the threads) follow the steps work the strategy outlined here. Who buys a car like this with an automatic? What a waste...
Here is the email negotiation in JPG format. The price is on the lower half. I edit out some private information. But if you are interested to know which Dealership it is in MD, you can PM me. Picture Here
I'll post up the MSRP picture and the car picture in a few days in the same message. So if you are interested, check back!
mrblackpcs2 said:NJanomaly said:Mrblack, do you think it is possible to purchase a Nissan 350Z Touring Edition (automatic) at or near invoice in New Jersey (especially considering that the weather has been crappy)?
All things are possible with skill and determination. That being said...I dont think its likely knowing NJ like I know NJ.
Read the threads (I know you didnt read the threads) follow the steps work the strategy outlined here. Who buys a car like this with an automatic? What a waste...
Thanks for the info. I am going with an automatic because I live and work in a high traffic area. Having a manual transmission under these conditions is annoying.
Thanks for the info. I am going with an automatic because I live and work in a high traffic area. Having a manual transmission under these conditions is annoying.
I hear you. Still a waste having a car like this in a auto. I'm from NJ. I know all about the traffic. However I'd still rather have a stick while driving on 1 & 9 headed for the city or headed down the parkway going to the beach. Biggest mistake I made was buying my mustang in auto. I'll fix this problem in 2006 when I upgrade to the new body style.
hey guys, I am looking at a used 2000 Infiniti G20 Sedan 4D, with automatic transmission, 77000 mileage, 4-Cyl, the dealer is asking $11995, and they want my best offer. What price should I give them? I am in NY state.
cardeal said:hey guys, I am looking at a used 2000 Infiniti G20 Sedan 4D, with automatic transmission, 77000 mileage, 4-Cyl, the dealer is asking $11995, and they want my best offer. What price should I give them? I am in NY state.
when I was at the dealership that tried to trick me, the sales manager came to me and say how you get this price? if I sell it to you for 20555, we lose money exactly liked you said.
I then smiled to my sister next to me and told her, I know this would happen It was really funny to me.
Honestly do they think we think that they will loose money just to say they sold a car?
mrblackpcs2 said:cardeal said:hey guys, I am looking at a used 2000 Infiniti G20 Sedan 4D, with automatic transmission, 77000 mileage, 4-Cyl, the dealer is asking $11995, and they want my best offer. What price should I give them? I am in NY state.
Thanks
reread the threads Actually, he needs to read the title! how to negotiate a great deal on a new car? Check out the values using Edmunds.com and KBB.com.
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