Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!

Car Buying Advice - Never bought a car before. Need help on negotiating the OTD cost.

thallthall Member Posts: 1
edited April 2017 in General
Been browsing around for a Scion FR-S. According to KBB, they're all being priced at a fair price for their year and mileage. My plan is to go in and tell them I want the asking price (let's say 17,500) to be the OTD cost, and to lower the car price to make up for the other fees they add on. If I hold firm with that offer, is that a reasonable offer the dealer can make? Or would that be too low for the dealer to even conciser that offer?

I'm also probably going to put down 8k to get the loan down to 10k. With my credit, on a 60mo term, that would be 170-190/mo. Will that down payment play a role in how low they're willing to come down?

Comments

  • NathanCrumbackNathanCrumback Administrator Posts: 508
    Hi @thall, we usually recommend researching the True Market Value (TMV) by going here: https://www.edmunds.com/tmv.html. The TMV is the estimated average price a car is selling for in a specific region (not including taxes and fees).

    If it's a new car, we recommend starting at least 2-3% below the TMV. If it's used, there is no set percentage but like you said, try to offset the fees and expect them to counter negotiate.

    Down payment won't have a factor on the discount they are willing to give. It doesn't really make them extra money. Dealerships mainly make money off the gross profit of the car, financing you through "their" bank, and selling you products in the Finance Office (i.e. extended warranties, GAP, service plans etc.).

    I would recommend getting pre-approved for an auto-loan. This way the dealership will have to beat the rate that you're approved for in order for you to finacne through them. This article goes into more detail: https://www.edmunds.com/car-buying/how-to-get-pre-approved-for-a-car-loan.html
    Edmunds Moderator
Sign In or Register to comment.