Don’t do the monthly payments negotiation. That’s where the dealer/finance person hides the extra fees and dealer fluff. They will include them in the very long sales contract and just pad out the payment period. “For only $5 a month we’ll include free carpet protection and lifetime blinker fluid replacement.”
Get your own financing ahead of time; bank or preferably a credit union. That gives you a base. Do give the dealer a chance to beat the rate though - do not do the monthly payment thing!!! You want an out-the-door price. They change that before you go to pick up the car - run, don’t walk out the door.
Toyota’s are American made. Certain models like the Camry and Sienna are in the top 5 vehicles with US content.
No matter how rural, don’t confine yourself to that area. Go 200 miles to save a couple of thousand; I’d do it in a heartbeat. The local dealer will still welcome your maintenance and warranty work. That’s where they make most of their money.
You also do not need wheel locks or service agreements where you allegedly get free tires for life. It’s all overpriced b.s. they tack on to pad their profit. You can get all of this stuff after market at a mere fraction of what the dealer wanted.
If the salesman says those things have already been installed on the vehicle point out that they haven’t (they won’t be) and tell them you refuse to deal with a liar and insist on another salesman or the sales manager. Better yet:
Be prepared to walk out. There are plenty of other dealers.
Don’t worry about the dealer/salesman making a profit. I can’t believe how many people I’ve heard say something stupid to akin of that. :rolleyes: Jebus Kripes! If they sell you the car, they have made a profit.
I have found TruCar to be worthless. I have always gotten much better deals than what they recommended.
Oh, and bad news: If you drive off the lot with a car, no matter how good of a deal you got, the dealer still won. They still got the better of you. Sorry.
I’ve purchased my last 3 new cars in Illinois because no dealers in Southeastern Wisconsin could/would come near the price for the exact same model with the exact same features. Even when I showed them the print out that driving 90 miles would save me $2200 they simply would not budge.
Be careful of advertised prices. They usually include all sorts of rebates that they’ll say you don’t qualify for. Nobody, but nobody is a member of the Farm Bureau and graduated college and was discharged from the service all in the last year. Remember: they are trying to get as much money from you as they can. That’s what they’re in business for, to make a profit.
The best time to buy a car is when you don’t actually need one but just want one. You’re far more relaxed and unpressured internally. Makes it a lot easier to walk the hell out.
Alphabetical in the employment section:
Abortionists
Assassins
Auto Sales
First, read this - all 5 parts. Knowledge is power, and this article at least brings to light where car pricing sites get their revenue (hint: not from you) and where their alliances lie (hint: not really with you).
I recommended most of these in a prior post because they are the easiest way to research car prices, but since you appear to want to go deeper (good for you!) full disclosure is in order.
I can’t speak for your bad experiences, but I’ve had absolutely no issues with the last three Toyota dealerships I’ve dealt with.
I know what I want, what I will pay, generally get a quote from the internet sales department, then go in and pick it up. Once the ISD gives you a price, it doesn’t matter which dealer you see, they will honor it (and are usually happy to know they have a confirmed sale, so the process is quick).
Again though, DO NOT go for ANY of the dealer addons when talking to the finance guy, no matter how appealing they seem.
One good way to find nearby dealers is Autotrader.com, do a search for the model you want and specify New cars within 200 miles or so. Filter out anything you don’t want like manual transmission or whatever.
Email dealers about any specific cars you are interested in, tell them you’re ready to buy, are shopping around, and ask what the best price they can offer on a vehicle that matches your specs. Their internet sales people tend to be less bullshit.
Thanks again for all replies. After reading this thread and Dr. Jackson’s linked website, I emailed all four dealers in the area, told them I was buying at the end of the month, and asked for their rock bottom out the door price. Only one replied. Any ideas?
Another question. The dealer who replied stated he was giving me the invoice price. Not sure what that means in this context. Does it mean he can’t go lower?
If you want, email him back and tell him he misunderstood - you want the out-the-door price. If he says it is the out-the-door price, then you can go to the other dealers and tell them that this is the out-the-door price to beat.
They will try very, very hard to change the subject to the monthly payment. Do not acknowledge these efforts in any way. Bring a calculator with you, and multiply the monthly payment by the term of the loan, and point out that the product is not the out-the-door price, and that you DO NOT WANT TO EXTEND THE LOAN.
The reason the other three dealers did not respond is that they want you to come into the dealership. People are reluctant to walk out once they drove there. This can be countered by being willing to walk away.
“This is as low as I can go.”
“Okay - thanks for your time. I will get back to you if I am interested.” Then get up and go to the next dealer. Lather, rinse, repeat.
Re-read part 1 of the linked series, appropriately titled “The eye-opening truth about dealer invoice pricing”. The term “invoice price” is absolutely meaningless:
Good luck trying everything in his book step by step, but it is both entertaining and gives insight into how car dealerships and salesmen work and make their money
The last edition came out before the boom of the Internet but still a useful read
10-15% off wholesale on a used car? Yeah, that’s not happening. A dealer will not sell you a used car for less than what they can get it for at auction, and auctions are what drive trade values.
I also bought a new Subaru. I live in a rural area but used Subaru’s excellent online tools to get e-quotes for the exact car I wanted from 3-4 different dealers. For example, here is a dealership near me:
That is the cars they have on the lot. Find the car you want and request more info. Let them know you want to know to the penny what it would cost to drive that car off the lot. I got equotes for the same model/same accessories and went with the lowest cost. And it did vary by over a thousand dollars.
I got a cashiers check for the exact amount, went in and 30 minutes later left in the car.
If you buy a used car you can have someone else pay for the depreciation. For example a 2016 outback will be 6.3K less than a 2017, that is 88% of the 2017 price and you still have 91.4% of the expected life of the vehicle.
I’d say the first step is to figure out exactly how much you are willing to spend. Either in a lump sum or what monthly payments will be. Look at prices online, and in print to see what’s in your ballpark first, then after getting an idea of what you might want start talking to the dealers.
Obviously you never tell any salesperson what your price limit is.
One piece of advice I will impart, having sold cars for a few years: be realistic.
The problem with many people is that they want retail (what the dealer would sell it for) for their trade, and they want our car for wholesale. It just doesn’t work that way. Car salespeople don’t make as much money off of selling a car as you might believe. The margins on new cars have gotten pretty slim, and the less expensive the new car is, the narrower that margin becomes.
Also, let the dealer have a crack at beating your rate if you got a quote from your bank and you’re financing. Sometimes not only can the dealer beat the rate, they can get a better rate from the very same bank you do business with. Financial institutions and car dealers have a parasitic relationship, hence rates can get the “Wal Mart discount” due to frequency of the loans the dealer sends the bank’s way.