Quote:
Originally Posted by Halon
Good info, although I don't know if I quite get the trade-in part about having a manager sign off. So when do I want to ask them for a trade-in price for a car? Is that the very first thing I should do when walking in the door before I even say what I'm looking for?
I guess to me it seems like there's 2 transactions taking place. No matter which I do first (negotiate car price, or trade-in price), they will always try to offset it. So say I'm looking at a Fusion for 20k. I walk in the door and say yeah we're interested in this fusion for 20k. They say oh ok, yeah with the rebates we can give it to you for 18k. I say OK then how much for my trade in, and they say 5k, so in total i end up at 13k right? Vice versa, I go in and get a manangers signature saying they'll give me 6k for my car. Then we go look at the Fusion for 20k, the guy will say he can get it to us for 19k with discounts. Same 13k final price right?
So I guess I'm not understanding how it matters?
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Yes, ultimately the net difference is what matters. But by getting a manager's signature on trade offer it allows you to walk away and come back in an hour, or a day or a week (generally stores that will do this offer 7-14 days) and they can't change the offer. Sometimes dealers that negotiate will change the offer on you if you leave. This ensures they can't do that.
You would be surprised how many people don't understand this the first time you point it out to them. Then you have to actually do the math with them and show them "They said they'll sell you their car for 19,740 and give you 5,000 for your trade. We're offering your $4,500 but selling you our car for 18,999." Happens about once a month. I even had a guy walk once because of this. We offered him less for his trade, but the net difference was that we were $280 cheaper. He was so butt hurt by the fact that our trade offer was $500 less, he walked.
Offering cash isn't a disadvantage. It's just not a way to get an additional discount as it's commonly believed.
If you can get a 0% financing offer, ask them to show it to you both ways, then decide what's best for your situation. 0% offers generally require you to give back a large rebate. This means if you're the kind of person who pays off your loan early, 0% is probably not the best offer. Or, if you have a large some of money down (or valuable trade) than 0% is also not a good of an offer because you could be paying a small amount of interest on a small amount of debt which would not equal the cash you have to give back. I.E. 2.9% on $12,000 financed doesn't total $2000's if that's the rebate you have to give back.
Quote:
Originally Posted by Halon
I hate the number games and the bartering...
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You, along with most people don't like this part of buying a car. That's why a lot of dealer's have gone to a Best Price model. That, and the internet. Dealer's can't make buckets of money on cars now-a-days because people know what they should pay for a car, give or take a few hundred bucks. For every person they do make several hundred dollars more off of, there's some guy they sell a car to for under invoice. If a person walks away from a dealership and founds out they could have paid $1000 less across town, they're going to be PISSED. It's a bad business plan.
That's what I like about working for the Rydell Auto Group, we just lay it out like it is.