Determining a price to aim for Mazda CX-5 Grand Touring (Premium Package)

1337Rooster

I'm going to buy a Mazda CX - 5 Grand Touring w/ Premium Package. FWD preferred (but most inventory is AWD, so I am not sure if I will find FWD).
Zip - 98103

How might I go about finding a price to suggest for #2? was wondering where I can find good data on this online about how low I can expect to negotiate? Should I aim for the green range on car gurus? Or is it possible to beat that? Does it change since 2021 models will be released soon?
https://www.cargurus.com/Cars/2020-Mazda-CX-5-Price-c29879

I have gotten my own car loan from a credit union and would like to buy.

I read this ultimate vehicle buyer's guide on Reddit. My plan is to communicate by email only.

I have seen two approaches for negotiating a price, I plan to negotiate by email.
(1) Contact multiple dealerships, ask for lowest out the door price, stating that you want to buy in the next couple of days. Then use prices from one dealer to lower the prices at another.

(2) Try to determine a low, but reasonable out the door price, offer that to a few dealers. Say you will buy it immediately if they can satisfy the low price. This may work well if you can satisfy the dealer with a low effort deal for them. The problem with this, is I don't exactly know how to select this price. well.

Not sure which one will yield better results.

Since I am doing my own financing, I should be able to negotiate a lower price than those who lease or finance with the dealer. IIRC. As I effectively pay for the whole vehicle up front, from the dealer's perspective.

kyfdx

1337Rooster said:

I'm going to buy a Mazda CX - 5 Grand Touring w/ Premium Package. FWD preferred (but most inventory is AWD, so I am not sure if I will find FWD).
Zip - 98103

How might I go about finding a price to suggest for #2? was wondering where I can find good data on this online about how low I can expect to negotiate? Should I aim for the green range on car gurus? Or is it possible to beat that? Does it change since 2021 models will be released soon?
https://www.cargurus.com/Cars/2020-Mazda-CX-5-Price-c29879

I have gotten my own car loan from a credit union and would like to buy.

I read this ultimate vehicle buyer's guide on Reddit. My plan is to communicate by email only.

I have seen two approaches for negotiating a price, I plan to negotiate by email.
(1) Contact multiple dealerships, ask for lowest out the door price, stating that you want to buy in the next couple of days. Then use prices from one dealer to lower the prices at another.

(2) Try to determine a low, but reasonable out the door price, offer that to a few dealers. Say you will buy it immediately if they can satisfy the low price. This may work well if you can satisfy the dealer with a low effort deal for them. The problem with this, is I don't exactly know how to select this price. well.

Not sure which one will yield better results.

Since I am doing my own financing, I should be able to negotiate a lower price than those who lease or finance with the dealer. IIRC. As I effectively pay for the whole vehicle up front, from the dealer's perspective.

Dealers get paid by the bank for selling financing on their vehicles. It is a fallacy to think you'll get a better price on the vehicle by paying cash (or, by financing elsewhere). When you get a loan through the dealer, you are making payments to a bank, not the dealer.

As a car dealer once said to me: "What do you think the bank pays us with? Peanuts? We get cash, either way."

That doesn't mean that financing on your own won't be better. But, it surely won't get you a cheaper price on the car.

1337Rooster

Thank you, I think my head may be full of misconceptions like that. I really appreciate you clearing that up for me, and giving me a reality check.

I do believe it is the case though, that if they offer you something like "0% APR" then they will just be increasing the sales price, tack on some fee, etc. accordingly so that the math works out the same for the dealer. They will do a net present value calculation

kyfdx

1337Rooster said:

Thank you, I think my head may be full of misconceptions like that. I really appreciate you clearing that up for me, and giving me a reality check.

I do believe it is the case though, that if they offer you something like "0% APR" then they will just be increasing the sales price, tack on some fee, etc. accordingly so that the math works out the same for the dealer. They will do a net present value calculation

Most incentives are sponsored by the manufacturer.

You are correct, though, that many 0% promotions involve the dealer getting less of an incentive from the manufacturer.

In Mazda's case:

0% APR up to 60 months, with a $500 consumer rebate.

If you use your own financing or pay cash, you get a $1500 rebate.

Assuming your own financing is 2.9%, you'll come out ahead by taking Mazda's 0% and foregoing the extra $1000.

1337Rooster

I think you are right that ht 0% financing is a good deal. My loan rate is 2.75% APR. I can just ask them for both a price with the 0% financing and, a price without it. And run the spreadsheet. But a head calculation really seems like the 0% financing is better like you suggest.

I contacted a few dealerships asking for their lowest price. I am seeing similar prices in the ballpark initially offered of:

31,800 - with the 0% financing
30,800 - without my own cash/financing
Before taxes and fees.

Mazda CX-5 Grand Touring AWD + Premium Package.

Based on what I am seeing here in Car Gurus. At the moment this is not a good deal. It is stating (Which I believe is based on a price without 0% financing). Am I correct in thinking this?

$29,141 (fair price), $27,732 (Good price), $26,913 (great price).
https://www.cargurus.com/Cars/2020-Mazda-CX-5-Price-c29879

Adding on the premium package ($1,625). It would mean I should aim for:
$30,766 (fair price), $29,357 (good price), $28,538 (great price).

I am thinking I need to be a bit more aggressive and try to at least hit "Good price". Is what I am seeing on Car Gurus reliable info? Is this good to use as a way to ask for lower, without going out of line?

I may just ask for the great price range or a bit lower, in the hopes that I can get in the good price range.

kyfdx

1337Rooster said:

I think you are right that ht 0% financing is a good deal. My loan rate is 2.75% APR. I can just ask them for both a price with the 0% financing and, a price without it. And run the spreadsheet. But a head calculation really seems like the 0% financing is better like you suggest.

I contacted a few dealerships asking for their lowest price. I am seeing similar prices in the ballpark initially offered of:

31,800 - with the 0% financing
30,800 - without my own cash/financing
Before taxes and fees.

Mazda CX-5 Grand Touring AWD + Premium Package.

Based on what I am seeing here in Car Gurus. At the moment this is not a good deal. It is stating (Which I believe is based on a price without 0% financing). Am I correct in thinking this?

$29,141 (fair price), $27,732 (Good price), $26,913 (great price).
https://www.cargurus.com/Cars/2020-Mazda-CX-5-Price-c29879

Adding on the premium package ($1,625). It would mean I should aim for:
$30,766 (fair price), $29,357 (good price), $28,538 (great price).

I am thinking I need to be a bit more aggressive and try to at least hit "Good price". Is what I am seeing on Car Gurus reliable info? Is this good to use as a way to ask for lower, without going out of line?

I may just ask for the great price range or a bit lower, in the hopes that I can get in the good price range.

I don't have any info on Car Gurus

Edmunds pricing tools are here:
https://www.edmunds.com/new-cars/