Paying Cash in hand - Under Invoice?

[whitespider]

Hello. I'd like to start out by saying this is my first post. I have lurked around for a few weeks now doing homework on the 2007 Prius and I like what i've read. Next off i'd like to detail the obvious to be a little more friendly. I'm 22, live in Miami, FL, and this is my first car.. and I have saved and saved and saved for it. It's hard earned cash. Anyways, here is my story.

I have about $22,000 cash and would like to buy a 2007 Prius with Package #5 (only reason is because this is the lowest one with the GPS, which I am very fond of for a first car, as it would be extensively useful in the city).

I have been donig all of my homework, and last night was floored when i saw a commercial for upto $2000 off MSRP of packages on the prius.. i go back to toyota.com and low and behold.. it's true! the package prices were lowered! .. and that was within the last week. So I was excited. Obviously there are problems with selling these things and they are doing a (seemingly?) nationwide discount without any seeming deadline to get rid of them. Anyways that's all a plus, here is the real reason i'm posting.

I would very much like to get the pkg 5 2007 for under invoice.. and I have been told that giving all the cash right there and then and offering it to the sale's manager right in front of his eyes helps alot with negotiation.

I was thinking to start at offering 20,000, cash, for this.. and work up to 22,000 as if it's feeling hard but i'm willing to take it (ultimately my goal was 22,000 anyways). Is this very realistic?

Really here is what I am looking for upfront: Just how much will it help me to be paying the car off cash right up front? Invoice? Below Invoice? How much below invoice? Is it a big help, or barely a big deal at all?

Thank you all in advance! I am looking forward to my new Prius!!

[dvdirv]

I just bought a new Prius with package #5 and I find that your $2000-2200 price range is not very reasonable.

MSRP on this vehicle is $26075 without floor mats (usually required) while the invoice is $23991. And the invoice pricing does NOT include any dealer profit.

With the current price of gas, the Prius is going to command even higher prices than usual invoice plus a few hundred dollars profit.

You need to re-evaluate your pricing options.

[whitespider]

<div class='quotetop'>QUOTE(dvdirv @ May 15 2007, 11:25 AM) [snapback]442430[/snapback]</div>

I just bought a new Prius with package #5 and I find that your $2000-2200 price range is not very reasonable.

MSRP on this vehicle is $26075 without floor mats (usually required) while the invoice is $23991. And the invoice pricing does NOT include any dealer profit.

With the current price of gas, the Prius is going to command even higher prices than usual invoice plus a few hundred dollars profit.

You need to re-evaluate your pricing options.
[/b]

Without even trying, just calling and asking the colors they had, i was offered 5% above invoice. Invoice does not mean, to my understanding, that they make no profit.. and there is dealer holdback and rebates and such. This is why I was asking, as I am unfamiliar with under invoice bargaining. Googling [ "under invoice" siteriuschat.com ] bring up alot of interesting results, which brought the birth of this topic.

[chinalfr2]

Cash deal or credit deal when purchasing a vehicle will result the same outcome. Trying to squeze the dealer to take a lost and sell you a car, that's impossible.

In additional, paying cash to purchase car also brought you some attention too. There are many reports that terrorists member purchase automobile with cash and use it for terrorist activities. Also carry this much cash around your area will not be safe.

Anyway, good luck with your hunt.

[dvdirv]

<div class='quotetop'>QUOTE(whitespider @ May 15 2007, 11:33 AM) [snapback]442433[/snapback]</div>

Without even trying, just calling and asking the colors they had, i was offered 5% above invoice. Invoice does not mean, to my understanding, that they make no profit.. and there is dealer holdback and rebates and such. This is why I was asking, as I am unfamiliar with under invoice bargaining. Googling [ "under invoice" siteriuschat.com ] bring up alot of interesting results, which brought the birth of this topic.
[/b]

Just figuring the 5% over invoice brings the car to about $25,200, well over your estimate. I'm sure you may be able to cut that slightly, but you will certainly not be in the $20,000-22,000 ballpark.

[ystasino]

<div class='quotetop'>QUOTE(chinalfr2 @ May 15 2007, 11:36 AM) [snapback]442438[/snapback]</div>

Trying to squeze the dealer to take a lost and sell you a car, that's impossible.
[/b]

This is not correct. I gave my dealer a written offer for $20790 for package#2 and he bettered it by $50 (plus had less dealer fees). That is more than $1300 below invoice. The dealerships are competing to reach the highest volume of sales per month. They WILL take a loss per vehicle even if they end up making $$$ in the end.

[priusmaybe]

<div class='quotetop'>QUOTE(ystasino @ May 15 2007, 12:18 PM) [snapback]442459[/snapback]</div>

This is not correct. I gave my dealer a written offer for $20790 for package#2 and he bettered it by $50 (plus had less dealer fees). That is more than $1300 below invoice. The dealerships are competing to reach the highest volume of sales per month. They WILL take a loss per vehicle even if they end up making $$$ in the end.
[/b]

The dealers also make money on financing. They make a little here and a little there. By paying cash, you actually cut their profit.

While I think they will be happy that you Qualify to buy a car, they won't care if it is cash.

[excuseMeButt]

<div class='quotetop'>QUOTE(priusmaybe @ May 15 2007, 01:27 PM) [snapback]442523[/snapback]</div>

The dealers also make money on financing. They make a little here and a little there. By paying cash, you actually cut their profit.

While I think they will be happy that you Qualify to buy a car, they won't care if it is cash.
[/b]

Dealers make a profit on the loan. If I were paying cash, I would keep the fact quiet until after the price was negotiated.

~S

[freke70]

paying cash or writing a check usually doesn't give you any extra negotiating power. You're young and will be taken advantage of, I'm serious. I sell cars (toyotas). I'm also 22, and know how hard it is to get financed. Do you have any vehicle to trade with the dealership? If so, you may reach your goal if it's worth enough. Otherwise, I'm afraid you may have to find more money, or finance the difference. The promotion you heard about/saw on TV isn't because Toyota's trying to sell off all the Prii, but rather because they are now widely available without waiting lists. There are no rebates on package 5 at the moment, either. There is, however, a 300 dollar dealer holdback in addition to the MSRP discount.

I hope that helps.

[mywhitenoise]

<div class='quotetop'>QUOTE(whitespider @ May 15 2007, 10:07 AM) [snapback]442414[/snapback]</div>

Obviously there are problems with selling these things and they are doing a (seemingly?) nationwide discount without any seeming deadline to get rid of them.
[/b]

No they're not. These cars are selling better than ever. Stop believing what the media and Prius bashers are telling you.