Edmunds dealer partner, Bayway Leasing, is now offering transparent lease deals via these forums. Click here to see the latest vehicles!
Popular New Cars
Popular Used Sedans
Popular Used SUVs
Popular Used Pickup Trucks
Popular Used Hatchbacks
Popular Used Minivans
Popular Used Coupes
Popular Used Wagons
Comments
23 Telluride SX-P X-Line, 23 Camry XSE
http://www.edmunds.com/car-buying/dealer-holdback/
Incentives also show up when you price the car on edmunds.com and kbb.com
Steve
That's the trick. You never mention holdbacks to them during your negotiation. You just tell them your price. No need to tell them how you arrived at that number. Once you start to give them too much information, the process goes against you from there.
I even avoid all the small talk about how many miles I drive each year, how many kids I have, what kind of driving I do, city vs. highway, what I do for a living, etc. Its a cash sale, so they shouldn't care (or need to know) about anything except the price.
Remember, these people are not your friends. They are adversaries in the negotiation process. Its strictly business at that point.
Steve
23 Telluride SX-P X-Line, 23 Camry XSE
WOW, that's an awesome price. Did you have any other rebates (military, loyalty, etc.) to get the price so low?
Good luck with it...
I was very clear that I was not a veteran or a loyalty customer but that I wanted to pay approx. $2400 under invoice.
Two dealers agreed to my offer. Of course, three others didn't.
Steve
Thanks Steve and Brian for your advices.
I was offerred $1295 for 10 yrs/?? miles, $0 deductible hyundai Platinum extended warranty (administer by Fidelity), should I buy it? Finance manager said I can purchase it within a week. The reason why I am considering is too many electronic components that can fail easily, like bluetooth, computer parts...etc. Please advice
Been following the posts in here for the past month or so gearing up towards getting my new car. It's been so helpful and I'm starting to feel quite confident (although never as confident as until after you've successfully done something) about going through this process. I live in NY and we were hit hard with this storm as most who aren't from the Northeast probably know about. In any case, I thought I had the perfect situation with respect to going in on Oct 31 since Monday and Tuesday everything was shut down. I was expecting to be in tip top shape for prime negotiation, but was still unable to get there then I know the end of the month is always best, but I'm hoping that with this crisis that's been going on there haven't been many sales and they'll be willing to do a good deal, as I don't really have much of a choice now with my current lease set to go back on the 10th.
In any event, I've been going back and forth on what to do for this next one, but from your knowledge and experience, would this negotiation work just the same with respect to the sales price of the car within a lease deal?
All the dealerships in my area (Frederick and Washington counties) were either closed, had phone lines down, or were just otherwise not making a lot of sales on Monday and Tuesday during the brunt of Sandy. I figured I had picked a really sweet time to go for the purchase. I worked two local dealers on the phone (one about 50 miles from where I work) and they wound up coming to equilibrium. I picked the further dealership which I actually preferred because I had been in a year ago and they treated me much better than when I went for a test drive at the closer dealer.
After the deal was done, I immediately realized I paid too much: My "OTD" price was 27,050... but that included $200 doc fees (d'oh!), and -$1500 in rebates. The sales guy kept going on about how he had never seen a sonata discounted that deeply (yada yada yada). I had been using truecar and various sources to try to find a good price, but I missed out on finding actual buyer stories.
Oh... and that wasn't my OTD price. I said no to the extended warranty and service plans three times... but not a fourth. Tacked on an additional $1900 in the end. I knew it was dumb as the words came out of my mouth, but... what can I say. I'm a sucker. For the past two days, I've been calling Fidelity Warranty (owns the Hyundai extended service/warranty plans) to try to cancel. They don't have record of the contract yet (they do say it takes 2 business days to get into the system). If I can successfully cancel the contract (good luck to me), I'll at least feel a little better about the price I paid.
Blah.
Point being, I don't think Sandy gave anyone an advantage at the dealer that wouldn't already have an advantage due to their strong negotiation skills.
23 Telluride SX-P X-Line, 23 Camry XSE
23 Telluride SX-P X-Line, 23 Camry XSE
You put yourself in the drivers seat by giving the dealer your price based on the options and packages you want.
For example, you see a car in stock with a specific total MSRP. Make an offer based on research and knowledge of invoice price and incentives.
You can get all incentives regardless of being a recent grad, veteran, etc.
Good luck
Steve
Hey Steve, I've seen you mention before about being able to get the incentives even when you don't qualify. How do you manage this, just tell them you want all incentives and if they ask for proof you just tell them you don't have it but you want them anyway? I wish I had you on my side going in there, I picture the salesman shaking in their seats when they try to pull their games and you slam it right back in their face haha. Thanks for all your posts.
The key is for you (as a buyer) to know the incentives. In the case of the Sonata it's about $1500 total. You don't want to discuss incentives per se.
Just make them an offer for the car you see/want.
You should also know the invoice price and hold back.
As soon as you mention how you arrived at your offer, you are doomed !!
I say to the sales rep, this is what I want to pay for this car. Immediately they bring in the sales manager or general manager, which is good for you.
The manager can always give you a lower price than the sales rep alone.
Good luck.
Steve
Need to move quickly -
Thanks - great to see consumers helping each other out. This stuff works -
ps. Last dealership I visited mentioned that they were offering a $750 incentive for anyone whose car was damaged by the Hurricane. Just fyi.
First of all, it is so easy to get good prices on a Sonata. There is so much margin in this particular model.
Rule #1: Never ask for a quote from the sales rep.
Rule #2: Do your homework. Determine the invoice price for the vehicle in question. Look here on Edmunds to get that. Based on the model's total MSRP, calculate 3% of that number. Subtract that from the invoice price. Then subtract an additional $1500 minimum. Use that number to make your offer.
Rule #3: Tell sales rep, that its all business. You will buy the car today of you meet "My price". If not, you will call elsewhere.
Rule #4: Do the negotiation on the phone. Tell them that you will come in to make the purchase if they agree to your price on the phone.
Rule #5: Pay no Documentation fees. If they insist on the Doc fee, then you insist that they reduce the previously agreed upon price accordingly.
Rule #6: Do not, and I repeat, do not, believe anything the sales rep says about anything.
Rule #7: Do not tell the sales rep how you arrived at your offer.
Rule #8: You have much more leverage negotiating during the last week of the month.
Rule #9: If you end up only negotiating with a sales rep and not the sales manager, you certainly paid too much. The best deals require that the sales rep gets his/her manager involved in the process. You need to see the sales rep squirm. I am very serious.
I was able to get a 2013 Sonata Limited (with Premium, etc.) with an MSRP or around $30,000, for $25,000 exactly with no Doc fees. The only added cost was state tax and license fees. I called 6 dealers. Two met my exact price. The others said they could not, but counter offered about $300-$500 more. The key is to drive the conversation and control things.
Good luck.
Steve
Their internet pricing is great. Just watch the date of your vehicle registration if you buy from them, as they contract this out and the contractors have been slow.
Just so you know, you actually paid for those mats several times over. Everyone says, on this forum, that you don't want to buy an extended warranty from the dealer who sold you the car. You can get the exact same extended Hyundai warranty from dealers online for half the price.
I bet you can also get Lojak elsewhere for cheaper. Its usually a mistake to buy anything from the dealer other than the car.
Anyway, we hope you enjoy the ride.
Steve
I am looking to purchase a Hyundai Sonata Limited MSRP 31,600. I offered a dealer 28k all inckusive, they are telling me 29 is the best they can do even with all the incentives...
Should I stand my ground???
Call other dealers on the phone .
Don't go to the dealer till you negotiate on the phone.
Also end of month gives you more advantage.
Say no to doc fees too.
You can do it.
Steve
PLEASE do not pay that much. I posted a couple of pages back for my 13 sonata limited with tech package OTD 25,700 with recent grad and Hyundai Motor financing rebate so 27,100 if you dont qualify for anything. The invoice is 28,100 so if you pay the price they are quoting you, they are making a TON of money off you. Do not pay anything above the low 27k if you do not qualify for anything.
Call every single dealer 100 miles from you should be like 6 or 7 depending on where you live. Go to about 2 or 3 the ones you like and are in the business to make a deal sooner rather than later.
Good Luck - I love the car and is beautiful inside and out -
BUT the gas mileage im average 23 to 28 city and highway mixed so be prepared for this. Its a huge car and 18.5 gallon tank so its heavy. Overall, great purchase!!!
Also, the car is due back before the end of the month, but I was considering extending the lease in order to be able to make a deal on the last day of the month as it appears that's your best opportunity for getting a good deal. What are your thoughts on this?
Any direction or help is much appreciated.
I usually sell my cars myself instead of trading it in. Having said that, a couple of times I have traded it in to the dealer. But only after negotiating the new car price first. When I start to negotiate the new car price, when they ask if there is a trade in, I say No.
After we come to an agreement on the new car price, I then say, "How about give me a price on the trade in". I do my research first to determine what is a fair price.
Then you can weigh the pros and cons of their price compared to the true price you think you can get privately. When I did actually trade in the car, the price we agreed on was close enough to what it should be, so I did it. Most times, they low ball you, so I just say No to the trade and just buy the new car. I've sold many cars over the years on craigslist.
I've never leased a car, so I really can't suggest how to handle that.
Hope this helps.
Steve
MSRP: $20,570
Factory Invoice: $19952
Dealer Holdback (3%): - $599
Manf to Dealer Incentive: - $1500 (min); Is this $1500-$2000 ?
TRUE DEALER COST: $17853
True Dealer cost: $17853
Dealer fair profit: $714 (3%). It can be 3-5%. Max 5%.
TOTAL FAIR PROFIT NEW CAR OFFER: $18567.
Plus Destination fee + Tax, Title, License fees + State tax/fees.
Minus $1000 HM Finance Cash back; $500 Loyal Customer Offer; $400 Recent Grad. I hope all three offers can be combined.
I have requested quotes from a number of online websites. Looking forward to hear from few dealers with their offers.
Does $18567 sound right ? It appears that one can avoid documentation fee, right ? Any comments ? TIA.
I wouldn't worry about "dealer fair profit". Really I never do.
They have so many ways to make money even after the sale such as end of month bonus, end of quarter bonus, other manufacturer to dealer incentives that the public never knows about.
Also, I never ask the sales rep for a quote. I tell them what I want to pay. They can counter-offer, of course. Then you decide if their offer is close enough.
Starting with $17,853, I like to deal in nice round numbers. I would offer $18,000 even !
Don't tell the dealer how you arrived at that number.
Say that you will buy now if they meet your price and that you will call other dealers.
As for doc fee, I always fight it. I have successfully bought cars with either $0 doc fee or a 50% reduced doc fee. If they say that the doc fee is printed on the sales order form, just tell them to reduce your agreed upon price by the amount of the doc fee. I've done that twice. You gotta be assertive with these people.
Good luck.
Steve
But one policy that I have, never changes. I do not, and I repeat, do not believe anything a car sales rep says. Nothing....
With all due respect, have a nice day.
I have been buying cars for myself, friends, and family for years. No one gets a better deal than I do. I have taught many people to do the same.
Steve
I felt that I needed to add to my previous reply as I don't think this individual is helping others on this forum. Does he want you all feel sorry or compassion for the dealership and make sure they make a substantial profit? It shouldn't be our (buyers) responsibility to make sure they make a profit. If they don't agree to the deal, so be it. End of story.
Does he think I am kidding when I say I do this all the time and it works. Here are 3 recent examples of cars I bought for myself or family members:
2013 Sonata Limited with $30,000 MSRP, I paid $25,000. No doc fee
2013 Lexus RX350 with $50,000 MSRP, I paid $44,000 with $400 doc fee (reduced from $600). (Note: I agreed to the $400 doc fee because I knew it was a very good overall deal)
2012 Toyota Prius with $29,300 MSRP, I paid $26,400 with no doc fee.
These were all below the invoice as well the hold-back.
To illustrate how easy this is, I could have gotten the Sonata from 2 different and very large south Florida dealers. Yes, I called 6, but 2 agreed to my deal.
As for the Lexus, I called 5 dealers in NH and MA, one agreed to my price, but 3 others were close enough (within $700) that I would have bought from them except that I choose the lowest price. My local/closest dealer will service it and be happy getting the service and warranty business.
Don't believe anything a car sales rep says. Besides, should car sales reps supposed to even be on this forum?
Steve
As long as they aren't soliciting, they are welcome in the forums..
Edmunds Price Checker
Edmunds Lease Calculator
Did you get a good deal? Be sure to come back and share!
Edmunds Moderator
Quick question regarding your strategy for a target price. When you talk about subtracting at least $1500 from the invoice price - hold back would that $1500 take into account any incentives, or would those be extra subtracted on top of everything else?
The $1500-$2000 I mentioned is the current Hyundai incentives. Some are for loyalty, college students, veteran, etc.
I determined when negotiating with several dealers that you can get them all. They never asked me for proof of military status, previous buyer, etc.
It seems that the manufacturer gives the dealer all the incentives totalling about $2000 total ($1000 of which applies to financing) and the dealer decides how to divy them up.
In order to get the full $2000 I agreed to finance just $6000, and pay the rest in cash. Ultimately I repaid the $6000 loan in less than a month.
My intention was to buy the car with cash like I normally do.
Hope this helps
Steve
Sale price was about $24,000. Sticker price was $28,885