how to negotiate a great deal on a new car? Archived From: Deal Discussion |
I try doing a search and was not able to find any thread on this topic. I checked carbuyingtips.com but wanted feedback from fellow on what to do and what not to do.
what im looking for:
Honda Pilot EX-L w/Navi, runningboards, and crossbars.
thanks
count26
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shop around, ask dealers on their prices. first of all, you need to know what kind of car you want and with what options. then check carsdirect or some other places online (kbb, edmunds) to get a price quote. u can also try going to a dealer and ask them to meet another dealer's price, or possibly beat that price (maybe throw in some extra options). good luck
Kelly bluebook (kbb.com) is a great place to find what the dealership paid for the car. I used it and bought my car for only 3% over what they paid even though you should offer 5%. ( I forgot to add back the destination charge).
The formula is their invoice price * .05 then add in the extras such as radio, destination charge, etc. If the radio is listed at $250 on the sticker than that's what they paid for it, or so I'm told.
Be flexible. Think "four door sedan," not "2004 Honda Accord EX V6."
My point? You may find a better deal on a car that meets your general needs that you would by trying to get a specific model.
Also, don't underestimate (or overestimate) the value of zero percent financing.
well Im looking to get a Pilot EX-L w/nagvi, running boards, and crossbars. I think invoice on it is 29,500 but the closest i got is 31,000. I think they can do better than that because 05 models are coming out next month plus they have holdbacks and rebates from manufacturer to move the cars.
Count26 said:well Im looking to get a Pilot EX-L w/nagvi, running boards, and crossbars. I think invoice on it is 29,500 but the closest i got is 31,000. I think they can do better than that because 05 models are coming out next month plus they have holdbacks and rebates from manufacturer to move the cars.it doesn't matter if 05 is coming out soon. if the pilot is a very popular car, you may not be able to negotiate better. on the other hand, if the pilot isn't that popular and available a plenty, then you have a great chance.
also, if you know and have test drive the car already and definitely wanting that pilot, try negotiating through the phone. you can always hang up if price is not in your favor. instead of driving to dealer to dealer and ended up with none.
linrick said:Count26 said:well Im looking to get a Pilot EX-L w/nagvi, running boards, and crossbars. I think invoice on it is 29,500 but the closest i got is 31,000. I think they can do better than that because 05 models are coming out next month plus they have holdbacks and rebates from manufacturer to move the cars.it doesn't matter if 05 is coming out soon. if the pilot is a very popular car, you may not be able to negotiate better. on the other hand, if the pilot isn't that popular and available a plenty, then you have a great chance.
also, if you know and have test drive the car already and definitely wanting that pilot, try negotiating through the phone. you can always hang up if price is not in your favor. instead of driving to dealer to dealer and ended up with none.
Thanks for the advice. That's why I'm negotiating prices over email.
Count26 said:Thanks for the advice. That's why I'm negotiating prices over email.
Wrong. You will get the best deal in person.
Tip: Go to them and tell them your offer. Check edmunds to see if they have holdbacks or factory to dealer incentives...if they do, even if they sell AT retail they make money. If not, offer them 30k. If a dealer doesnt match it, try this line (once you find a dealer that has exactly the car you want..make sure that you filled out some papers with your phone # etc)
"Well, I am willing to spend 30k. If you can not make me this offer, I will go to another dealership. If they match my offer, you just lost my business...but if this is the best price around then I will be back tomorrow"
Or just simply say the price they are asking for is too high. I have done that, and after 10min of leaving the dealership saying (when their offered price was $1k more than what i offered) "you don't have the color I was looking for anyway", i got a phone call. "What would it take to bring you back to our dealership?" i said "Nothing, you don't have the color i want, or the price." After 5min on the phone , i was offered they bring in the color i want, AND match my offered price ($200 over invoice).
Sorry for the long post, just trying to point out that E-mail will NOT get you the best offer cause you're not there to sign the papers of the eager-to-sell salesmen.
thanks for that tip. I've tried coming into these places and they always give me the same song and dance routine...dealer: "there's no way you can it for that price" or "we'll be losing money on it" I am not doing this for myself but for a friend. I did lock in on a great deal on a 03 CR-V last year for like 500 above invoice and 1.9 APR and I was given the same lines until i decided to walk the salesman cave into that 1.9% 
I also really think its up to the salesman. It's not like they can't do the deal b/c they will lose money but the key issue is how much money does the salesman want to make.
forget the nav you'll get a better unit aftermarket. go to a dealer(after they close)find the one u want. right down every option including the codes if available. go to edmunds.com to find the invoice. start negotiating from 2k below that price. do not pay more than invoice including tax and tags. i'm an ex finance manager for a large ford dealer in sc. i just bought a 2004 suburban that stickered at 49k, i paid 40,0029 including tax and tags.
ps you want to be at invoice before any rebates. the dealer is not gonna give up hold back. they gotta eat too.
do not negotiate finance, trades, etc. invoice(including tax/tag)-rebates(dealer and factory) plus an oil change before delivery.
mrblackpcs2 said:forget the nav you'll get a better unit aftermarket. go to a dealer(after they close)find the one u want. right down every option including the codes if available. go to edmunds.com to find the invoice. start negotiating from 2k below that price. do not pay more than invoice including tax and tags. i'm an ex finance manager for a large ford dealer in sc. i just bought a 2004 suburban that stickered at 49k, i paid 40,0029 including tax and tags.
ps you want to be at invoice before any rebates. the dealer is not gonna give up hold back. they gotta eat too.
do not negotiate finance, trades, etc. invoice(including tax/tag)-rebates(dealer and factory) plus an oil change before delivery.
pilot is not like suburban, it's a very popular model, at least here in so. cali.
the salesman don't even come to you unless you ask them politely
i went nissan dealer in cerritos for armada, after talking to sales rep for about 10 minutes about the car i gave him 38k, with big smile his face he said 42k, and second shot he turn back and just walk away
he said they sold 42 of them over the weekend
ynotme said:mrblackpcs2 said:forget the nav you'll get a better unit aftermarket. go to a dealer(after they close)find the one u want. right down every option including the codes if available. go to edmunds.com to find the invoice. start negotiating from 2k below that price. do not pay more than invoice including tax and tags. i'm an ex finance manager for a large ford dealer in sc. i just bought a 2004 suburban that stickered at 49k, i paid 40,0029 including tax and tags.
ps you want to be at invoice before any rebates. the dealer is not gonna give up hold back. they gotta eat too.
do not negotiate finance, trades, etc. invoice(including tax/tag)-rebates(dealer and factory) plus an oil change before delivery.
pilot is not like suburban, it's a very popular model, at least here in so. cali.
the salesman don't even come to you unless you ask them politely
i went nissan dealer in cerritos for armada, after talking to sales rep for about 10 minutes about the car i gave him 38k, with big smile his face he said 42k, and second shot he turn back and just walk away
he said they sold 42 of them over the weekend
well every else in the world suburbans are more popular. and the car business isnt exactly booming anywhere. The tactic i stated will work. he may considered going out of states to save a few grand.
Consumer Reports' Annual Auto Issue in April always gives advice about haggling with sales people. Usually, in-person negotiation produces the best result. If you feel uncomfortable with that or do not wish to waste time, there are buying services. My last auto was purchased through mycar.com. Basically, you pay a fee for the number of dealers you wish to have included in the process. Then, what happens is they submit bids to you. Usually, nothing happens until the last day when they offer their best price. Of course YMMV since it simply comes down to supply and demand in your area. Look at some of the prices from mycar.com for a Honda Pilot and compare this to other SUV's and you will see that getting a great deal on that vehicle might not be easy.
Link
I disagree with the statement about best price in person. You are just wasting your time driving around different dealership. Here is what I would suggest you do.
1. Go to the hondapilot.org website. The website's members are usually owners of this particular vehicle. These members knows their car and their experience with the purchase is going to be much better than anyone from this forum.
2. Look up some of the dealer ratings from the website. See if any of the dealer is in your area.
3. Get the number for a few of the dealer and call them up with the price you want to pay for the vehicle. Leave them your email address or phone number. Let them come to you instead of walking to the dealership negotiating. Make sure you tell them that the price you are offering to pay is fixed. You don't want to pay for any prep package etc. If they decided to throw it in for free, fine but you are not going to pay for it. If they can't do your price, they will tell you the price they want. Write that number down. Use that number to compare it to what other dealers are offering.
4. Don't be shy to ask for a quote from a dealer 100 miles away. The number they give you will give you a bargaining power for local dealers. Remember, you are not driving out there so it doesn't cost you anything to ask.
5. Buy the running board and any accessories you are interested from hondacuraworld.com. If you are not a handy person, fine. Print out their prices and take it to the dealership to see if they can match the price and charge you reasonable labor rates. You will be shocked with the markups.
The above advices are based on my experience from purchasing a Acura TL in 2002 and 2004 MDX in 2003. I used the TL and MDX websites and they are very similiar.
BTW. The statment about honda pilot being popular and hard to negotiate is not accurate. Yes it's a popular vehicle but drive to a honda dealership and see how many are sitting around. There are lots of similiar SUV in that class to compete with the pilot now so they will negotiate. You should definitely pay invoice or close to it for a 2004.
Here is an example of one thread. Noticed that someone mentioned side curtain airbag for the 05 and transmission upgrade.
2004 Pilot at invoice
If you are buying a new car and know exactly what you want, then I recommend the following:
Fax attack...
Basically, type up a generic fax with some contact info (name, city, state, fax#) on it. Put in the "exact" vehicle you are wanting to purchase. Put in there that you are willing to travel in order to find the best deal possible on the car and you are ready to buy today. Go to Honda's website and find all of the dealers within 300 miles (you can get their fax numbers right from Honda). Then fax your letter to as many as you think you need to. VERY IMPORTANT: Don't give them your home phone or you'll be flooded with calls forever. Just give them your fax number to reply to.
Once you have some offers, take the best one to your local dealer and tell them, "I have this offer from "XXXXX" dealer, but I would prefer to purchase locally if you would match it." Some will, some won't. I got my Honda Odyssey 2004 model for $200 below invoice when they were first released while most people paid thousands over invoice and only had to travel 40 miles to get it.
FYI.. About 1 in 5-7 will respond to you, so you will have to fax to at least 40-50 to get a decent ammount of offers.
Another tip is to hit up the biggest dealers you can find. Honda rewards dealers based on "volume" and they get larger kickbacks based on the ammount of vehicles they sell. These dealers have more room to negotiate.
Good luck!
Bring in other offers that are printed, ones you may have not even looked at and say how much better they seem compared to the offer you are getting(don't let them call your bluff). Always take the second offer they give you, you know the one after thier BS best they can do line, and drop it by $300 to $500. They won't let that little margin stop them from selling a car, this applies to cars that are 12-15k of course.
Here's what I did when I bought my Honda Accord.
I called up a bunch of dealers around where I live and I told them that I knew what the invoice price was (from the internet) and I was calling up a bunch of dealers from whom I would be shortlisting a few based on the prices they gave me over the phone.
After I shortlisted, I visited three dealers, dropped one and negotiated with the other two. I got a price pretty close to invoice but this was in 2001.
Pilot is very hot SUV in the market right now..Like oddessy in 2001 people paid 1500 over MSRP and wait for few months. I just bought mine 2004 oddessy EX with leather for 25,700, invoice was 26000+ and MSRP was 29,900.Very Nice minivan for Very good price.
if you play a retart and act like you can't handle yourself, the dealer will most likely be nicer and give you a better price. Just keep talking and the price will go down. Also, flirt a little
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