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What you need to do is figure out if your car is being brokered to drivers who don't actually work in the employ of the shipping company. That can lead to problems.
Why don't you take a look at Hemmings Motor News (www.hemmings.com) and look at the towing companies in their classifieds section? Many of these transport companies move both classic and modern cars, and in Hemmings you can actually see in the ad how long they have been advertisers. In Hemmings, if you are a dud, you don't last long as an advertiser.
This isn't my first rodeo (not by a longshot!) but it's been a while since I shopped so I'm wondering:
will I generally get the BEST PRICE from the dealer by agreeing to finance, or by paying cash?
I'm in a decent position at the moment, so even if I take a loan I'll probably opt to pay it off real quick.
But I'm thinking that the dealer might be more willing to negotiate a better price if it's going to be financed (as in: the Mazda dealer gets compensated for generating Mazda Finance transaction)
...or do they favor "cash" customers?
Thanks in advance.
p.s. I know that I'd be able to drive a better bargain buying one of the leftover 2012's, but the 2013's have some cool features that I feel are worth holding out for. :shades:
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
the only real difference should be if Mazda is offering a cash back or low APR financing option.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Many of the "experts" who publish car buying advise suggest dealers will often lower the selling price a bit if they think they will make additional money from the sale of products (financing, service contract, mop and glow, etc.) in "the box" (F&I office). What is clear is the selling price won't rise if the dealer views the buyer as someone who would buy additional "product" in "the box."
Many of those "experts" also suggest a dealer really doesn't care about a cash buyer. The dealer gets its cash regardless.
They can't put her name on the financing, because it will be declined since they would have to take both of your incomes & credit scores into account, and they can't give equal responsibility for a loan when one party currently has no ability to pay that loan.
In my state, however, the loan & title are separate issues. You can add a name on the title, meaning she would be part owner (of any equity, and any responsibility too should an accident occur) and could, therefore, get insurance coverage.
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2013 LX 570 2016 LS 460
She has selected a new vehicle, a Hyundai Santa Fe Sport, and plans to pay Cash for it. I have explained to her and my step-dad that this does NOT improve their negotiating position.
Walking into a dealership and saying I don't have a trade-in and paying cash is a lot like the customers who go to a grocery store and only buy the items on sale. Dealers are businesses, not charities and they need to make a fair profit. At the same time, I want my Mom to get the best deal possible on her new Hyundai!
How should we handle these issues with the dealer?
If you go over to real world trade in values here on Edmunds and post the info on the Explorer, you'll get an idea on its value.
As for paying cash, no need to mention that. Just negotiate the price of the vehicle and ignore/deflect the questions about "what monthly payment do you want" or "will you be financing."
Naturally dealers also try to low-ball trade-ins, since used car profits can be tasty for them----or, they may offer you a generous trade-in and then pack it on the new car sales price if they're confident they can do that.
another factor is that the dealer may not really want what you have to trade-in--if he's going to wholesale it for a quick buck, he has to buy it right.
and that should tell you something, that I wanted the Hyundai over the Acura!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
2013 LX 570 2016 LS 460
As for your trade, it really doesn't matter, in my opinion, when you bring it up. The common mantra seems to be to hide the trade till after you've struck a deal on the car you are buying. But that is pointless. Why spend all of that time negotiating on one part only to have it all flushed down the toilet when you find out they don't want to step up on your trade? You are just wasting their and your own time. Work the deal as a whole, as long as you can keep the numbers straight for yourself. Frankly, I think the math impaired are those who need to hide the trade.
As long as you know ahead of time the difference between trade and new that you want to pay, it doesn't matter how they arrive at it. If they want to give you $1k more for your trade and charge you $1k more for the new vehicle, or vice versa, so be it. It doesn't affect the bottom line, and that's all that counts.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
And, as always, a buyer should just say no to everything presented by the top gun sales person in the dealer's F&I office. A simple thing to remember is the F&I people have convinced themselves the only reason a person will not buy the products they offer is the buyer does not understand the value of those products. As a result the relentless F&I sales pitch complete with props all designed to convince the buyer to buy, buy, buy. To those sales people, the fact the products are vastly overpriced plays little part in a buyer's rejection.
As far as sales tax I believe in CA the sales tax is based upon price paid regardless of trade in. Argh.
Well, not to pick nits, but just to be clear, as long as the difference is the same, the tax will be the same. So if I pay $20k for the new car and get $5k for my trade, I'll pay tax on $15k. If they only value my trade at $3k but I pay $18k for the new car, I still pay tax on $15k. This is in NJ. I'm not sure about other states.
'11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S
If I assume the Edmunds True Market Value is accurate, it says I should expect to pay about 1.9% above invoice.
1) Does Chrysler give an additional payment to the dealer when they sell me a vehicle under this program to help them recover some lost profit? Or is a few low/no profit sales part of doing business (of course there is still financing, dealer options, service, repairs, etc for them down the line).
2) What about the salesperson? The guy who helped me out today seemed great. If I end up buying from him I would hope he earns a commission on the sale.
I figure it's always good to understand people's financial motives in situations like this!
Thanks
The dealer is paid a fixed amount by Ford to process the sale. There's little time spent by the dealer and salesperson in negotiating. The sales counts towards their allocation. Other manufacturers do the same thing.
If you are going to use one of these programs, you really should be up front about it and let the salesperson know. It's not fair to him/her to spend 4 hours with you on what might be a $50 commission.
Little late to the party, but he could've been talking about CA.
If the new car is 20k and you get 2k for your trade in, you pay sales tax on 20k
If the new car is 22k and you get 4k for your trade in, you pay sales tax on 22k.
There is a real world trade in value thread here, so find that and get a better price idea, but running it through Edmunds appraiser, and assuming AWD and no options, it came out with ~20K trade in, and 22K private sale.
using that, you should have some equity. But, not much. so you could in theory trade it in and cover a minimal DP and tax/fees, but you are still going to end up with a loan, and on anything new, most likely the same amount (though maybe spread out more) but on a much lower level car.
basically, you would owe what you do today, but extend the payments out for another couple of years, but it would lower the payments now.
Option 2, sell it. Private sale, or try a Carmax if you have one. Then take whatever equity you net (4-6K maybe) and buy something basic and used to tide you over. No, you won't be driving a fancy Lexus, but you could get away with no payment (and likely lower insurance).
Really tough to say what you can net and what you can find. May not be as reliable of course.
Another option of course, is cut back elsewhere (or get a part time 2nd job) to have the money to cover the loan.
and the other choice for people with cash flow/DP issues that need reliable trans? Trade or sell, take the equity, and get a not too expensive girl with a killer lease deal. You might get some $ out of the deal, and into a lease for a lot lower price.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
I have contacts at Subaru, and their VIP pricing IIRC was 2.5% below invoice, plus you get any incentives. And it was set up at corporate, so the dealer was just an order taker in this case.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
What is my legal/moral responsibility when trading in an older car at Dealership and purchasing a new one there, to tell them of problems with car ?
Do I just say that "you take it as is," or tell them that there is actually a small coolant leak ?
I imagine they will ask, and/or there is some form regarding.
It has 135,000 miles on it, a 2005, excellent condition other than this small leak. Would they just likely scrap it ? Hate to see someone buy it and then find out that the leak gets worse, or... ?
Don't want to give them excuses for really minimizing what they give me for the car, but if it to be scrapped, no reason to tell them. If they will sell it, not sure how best to handle ?
What should I tell them re leak, or not tell them ?
Thoughts on ?
Thanks,
B.
In any case, it's an 8 year old car with 135K. It's going right to auction on the next transporter out. Telling them there is a coolant leak probably isn't going to affect the value by much.
Why not fix the coolant leak and sell it on Craigslist? Is it a hose or is it a head gasket?
Now, a bad tranny that slips when warm, but you bring the car in cold after parking overnight around the corner? Well, that is bad form!
but in any case, this car is going to be sent straight to auction, and they are going to offer you next to nothing assuming it has problems. So no, I would not tell them about it. If they ask directly no need to lie, but it is an old high mile car, so it is going to have some flaws!
I do agree with Rob that you might want to have it fixed (depending on what it would cost) and sell privately, since depending on what it is, you might do considerably better. And if you don't want to bother, just note in the ad about the leak and let people decide for themselves.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
I'm struggling with the idea of buying a new car b/c my old car still works, but it will probably start needing some work in 2013 (new brakes, etc). So I figure that some dealerships might be wanting to unload their remaining 2012 inventory tomorrow 12/31 at a good price so they can improve their end-of-year sales figures. So I was thinking of sending an email like this:
"I am looking for a 2012 silver or gray [vehicle]. To be perfectly honest, I am hesitant about buying a new car because my current car works perfectly fine, so I will only purchase a new car if I can obtain one at a fire-sale price, and I figured 12/31/12 would be a good day to find a dealer who wants to unload a 2012 model.
My zip code is 12345 for pricing calculations, and I will be paying cash for the car. Can you please provide me with an out the door quote today with your best offer?
I am seeking price quotes from various dealers so please be sure to obtain authorization from your manager if required before quoting a price.
I understand that you may not want to send offers via email to customers, but if you have a car that matches what I want, and you will be able to give me an exact price quote on the phone, then email me your phone number, and I will give you a call."
or would something like this be better for the first paragraph:
"I am looking for a 2012 silver or gray [vehicle]. I am prepared to pay cash TODAY, but I will ONLY purchase a new car if I can obtain one at a fire-sale price, and I figured 12/31/12 would be a good day to find a dealer who wants to unload a 2012 model."
thoughts? thanks for your input
first of all, are you planning to specify a specific car? Or just anything they happen to have? You really need (if you want to have a hope of actually getting a real quote) to have an exact car (or model) in mind.
So, something like " I am willing to buy today a 2013 Accord EX in silver mist, which should have a MSRP of $23,456. I see stock # xyz on your website" "please supply your best price if I take it today, including all fees and taxes for an OTD price"
and if you really want to do it, include your phone number.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
And a "cash" sale is of no importance to a dealer, other than that he knows that you don't need financing so won't be a flake---but he'd rather sell you a car with financing.
I agree with the others---short and sweet and what's your best price, I'm a ready buyer.
yes, I do have a specific model in mind. I guess I can't figure out how to communicate that I'm only going to buy a new car if I can get a really good price. I just figured that on 12/31/12, there may be some dealers that are willing to unload 2012 inventory for fire-sale prices...
thanks for your help
you can also negotiate one sided if you want, and if the offer isn't good enough, just tell them to keep going lower!
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Yes, I do have a target price in mind. I might just walk into the closest dealer an hour before closing and try your suggestion if my emails/calls earlier in the day don't get me where I want to be.
thanks
And watch as the salesperson and sales manager both say, come back tomorrow.
The dealership may have already hit it's goals for the month and having to deal with a sale and delivery the day before a holiday might be more of a hassle than the meager profit they are going to make.
I walked into the closest dealer an hour before closing yesterday with my checkbook in hand and a print-out of a webpage advertising the sales price of my desired model at a dealer that, while not close by, is located where I'm planning to visit in 5 weeks. I asked the dealer to match that dealer's advertised price, and he said no. So maybe I'll buy from that dealer advertising a good price online...still have not decided.