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Negotiating new car price

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Gliderman8

Gliderman8

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My daughter is looking to buy her first car (CX-5). Everything I've read about negotiating the price with the dealer recommends starting with the invoice price and working up and NOT starting with the sticker price and working down.
So my question is: Where (or how) do you find out the invoice price the dealer paid for the car?
Any help for "playing the haggling game" is appreciated.
 
There are lots of discounts and rebates that the dealers get beyond guessing what the dealer invoice. I used to be in charge of a 1200 car fleet and dealer invoice means nothing. I buy at Costco now. Much easier, the price is set and they already negotiate for you.
Jerry
 
Can't remember where, but various dealer incentives used to be listed at Edmunds.com.
 
My two cents: the "dealer invoice" price isn't usually what the dealer actually paid. Dealer buys in bulk, and the distributor sends individual invoices *not* based on the actual price the dealer paid.

Consumer Reports can get you lots of price info, as can other sites already mentioned. Main thing is, good luck if you're trying to negotiate "up" from invoice - as you never really know what the invoice price is.

Come to think of it - how can a website really know what prices were paid for specific cars in a given area? That sounds like guesstimating the final sale price for cars advertised on Craigslist!
 
After almost twenty years,we did the "dealer experience".
To me,nothing had changed.Sounds like really great deals,until
you read the fine print.
When we were looking for a Ford Fusion,I knew how much
I'd pay "out the door". Ended up buying one from a private party,
for our price.
Remember,there's more than one dealer.
 
I look for the dealer incentives to get a closer sense of what a true invoice MIGHT be... then I use Costco. And even at that, I've had two different Costco dealers undercut each other. The best part of that Costco game was dealing by the arms-length of email. I looked up a given dealer by one zip-code and my wife another zip-code; it worked. Of course, this presumes that you already have a sense of what car you want, and that will require some old-fashioned dealership games.
 
NutmegCT said:
My two cents: the "dealer invoice" price isn't usually what the dealer actually paid. Dealer buys in bulk, and the distributor sends individual invoices *not* based on the actual price the dealer paid.

Consumer Reports can get you lots of price info, as can other sites already mentioned. Main thing is, good luck if you're trying to negotiate "up" from invoice - as you never really know what the invoice price is.

Come to think of it - how can a website really know what prices were paid for specific cars in a given area? That sounds like guesstimating the final sale price for cars advertised on Craigslist!
Click to expand...
Agreed with everything you said Tom... just trying to do my homework before going into battle. Buy a car is such a blind purchase....
 
Another vote for Costco.

In theory, if you're armed with accurate pricing and incentive data, excellent timing, and a willingness to to go into the haggling process with a blood-thirsty, no-holds-barred, take-no-prisoners attitude, you might be able to walk away with a better deal, maybe.

For me, life's too short, Costco's too efficient and there's already too much unpleasantness in the world to do otherwise.
 
I used Costco as well as Truecar and Edmunds. I think dealing with the internet sales person helps as well, especially if you don't have a trade-in. You can play them off against each other without having the in-person pressure you normally get. I got to the point that some dealers couldn't match another one's offer (Subaru) Still, dealers are professionals and I'm not. I think I got a decent deal and didn't get totally screwed, but I doubt very much I outwitted the "stealerships."
 
Thanks Greg. Believe me I don't have any problem playing the waiting game. I'll give them my number and say call me if we can do business and then walk.
 
Two things I recall from my last dealer interaction - six years ago: negotiate an "out the door" price, and the deal ain't done until you drive home.

"Out the door price" means the total amount you pay, including all fees and charges. The dealer splits their profit into markup and various fees. A dealer may give a nice price, and then tell you there is a $500 "documentation fee" or "advertising fee", explaining that it is non-negotiable. (Often under the guise that the dealership has no control over the fee amount. For example, this is what Ford charges the dealership to process documentation, or this is a fee to cover advertising for all local Ford dealerships, or some other story.) Often this "fee" does not get mentioned until the very end. My stance was, I don't care what you call the markup - and I understand the dealer is not a charity. But tell me the total amount that I will pay to drive the car home.

Secondly, once I finalized my negotiations, I was taken to another office. For one hour, a kind gentleman tried to sell me paint sealant, interior protection, extended warranty, and many other "upgrades", most of which (not all) I likened to snake oil. I did not buy any.

Final point, sometimes it helps to go with dealer financing, even if you don't need it. Make sure it is a low rate and does not have an early payment penalty. By getting it, you may be "throwing the dealer a bone" (they get a commission for the sale), and then you can do what you like with the loan (pay or keep it).
 
Popeye said:
... I was taken to another office. For one hour, a kind gentleman tried to sell me...QUOTE]

I'm impatient with all those games. The moment things are slowing down I tell them "sorry guys, I'm outa here."
Click to expand...
 
Thank you all for your great advice. My daughter test drove a car on Saturday and when we got back to the dealer the "manager" was waiting to sell her a car. I let him know how unprofessional it was when we haven't even decided on the car. We walked away.
 
Gliderman8 said:
Thank you all for your great advice. My daughter test drove a car on Saturday and when we got back to the dealer the "manager" was waiting to sell her a car. I let him know how unprofessional it was when we haven't even decided on the car. We walked away.
Click to expand...

LOVE doing that. So satisfying.
 
my father used to decide what he car he wanted and what his offer was. then he just wrote a check with the cars VIN on it and give it to the sales guy, and tell him when they are ready to accept his offer - call. Usually worked
 
Boink said:
Popeye said:
... I was taken to another office. For one hour, a kind gentleman tried to sell me...QUOTE]

I'm impatient with all those games. The moment things are slowing down I tell them "sorry guys, I'm outa here."
Click to expand...

I know... the problem is, I needed / wanted the car. Walking out would mean I go to my second choice dealer, pay a higher price and possibly go through the same rigmarole. So I decided it was in my best interest to donate an hour of my life.
Click to expand...
 
70herald said:
my father used to decide what he car he wanted and what his offer was. then he just wrote a check with the cars VIN on it and give it to the sales guy, and tell him when they are ready to accept his offer - call. Usually worked
Click to expand...

I like that! I will remember that next time I buy a car. (New or used.)
 
Beware of financing, I was double teamed and had two salesmen. They talked the wife into a lot of add-ons, key insurance, warranties, that I did not want. They knew I was a hard one as I had pretended not to know Land Rover, but put it thru the paces on the test drive. Salesman knew nothing and got a back-up help. Cost me $5K more for wife's insistance that I am getting older and might not do what I used to in repairs. Now I buy private and not from Dealers.
 
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