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Is this normal?

Discussion in 'Dealers & Pricing' started by Kaigler, Oct 24, 2011.

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  1. Kaigler

    Kaigler Junior Member

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    2011 Prius
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    We are in the middle of negotiating for a Prius III around $28,000. My wife and I are both recent college graduates. We both have full-time jobs. We qualify for the college program through Toyota. When it came time to talk money they came back with a 7.99% interest rate. They told us that they do that just to show us what payments "might" look like and that the rate once they submit paperwork to the bank usually comes back between 5-6%.

    Additionally - they were not willing to come down on the car at all. What I want to know from you guys - is that normal for them not to negotiate at all on price? Because I would think they would have some room. But maybe because it is a Prius they can't.

    Any of this sound funny?

    Sorry if this is inappropriate. I just really need some advice before making such a big decision and I thought who better to ask than the people that have been in this situation most recently.

    Thanks!
     
    #1 Kaigler, Oct 24, 2011
  2. El Dobro

    El Dobro A Member

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    Has the dealer stuck any add-ons, like window etching, finish protection, etc. onto the price? That's the first thing I wanted off the price when we started negotiating.

    As for financing, shop around. I got my loan through Toyota Finance.
     
    #2 El Dobro, Oct 24, 2011
  3. Kaigler

    Kaigler Junior Member

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    I don't think they have anything like that on the model we are looking at. But I read about that yesterday and was prepared to negotiate that off if we had to. But it never got to that. He was like dead firm they could not come off.
     
    #3 Kaigler, Oct 24, 2011
  4. El Dobro

    El Dobro A Member

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    If they don't want to deal, then shop around. I went to three different dealers until I finally pulled the trigger.
     
    #4 El Dobro, Oct 24, 2011
  5. ItsNotAboutTheMoney

    ItsNotAboutTheMoney EditProfOptInfoCustomUser Title

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    It's normal for a dealer to see young buyers and try to rip them off.

    Column 1 Column 2 Column 3
    0 Item Price
    1 3 MSRP $24 520
    2 Destination $760*
    3 Pre-tax $25 280
    4 Tax rate 6.25%
    5 Tax $1 580
    6 Total $26 860

    MSRP already includes significant profit for dealers.
    Supply is back to normal.
    2011 is coming to an end.
    The 2012 model will have additional items.
    So, people are now getting deals well below MSRP.

    If you can't get a good local deal, you can buy further away or out-of-state. One of the great things about the Prius' great mileage is that it's cheaper to drive home. :D

    Run away and don't look back.

    * They say it's higher, but screw 'em.
     
    #5 ItsNotAboutTheMoney, Oct 24, 2011
    1 person likes this.
  6. JimN

    JimN Let the games begin!

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    if you are a member go to www.aaa.com redirect to build your car & to contact up to 3 dealers for prices. Around here the AAA price is invoice. Shop around for the loan. Are you a member of the credit union where you work? If not, join.

    Generally, if you are going to get a promotional rate you won't get a good price on the car. They have to make money somewhere. IMO your dealer sounds like they are trying to screw you on the price of the car and the rate. Don't take it personally. It happens to everyone.
     
    #6 JimN, Oct 24, 2011
  7. fuzzy1

    fuzzy1 Senior Member

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    They most certainly have room. But they won't give it up if they feel they don't have to.

    I went to six dealerships, and only two were reasonable. The two closest places demanded particularly high prices.
     
    #7 fuzzy1, Oct 24, 2011
  8. sipnfuel

    sipnfuel New Member

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    My first reaction is that the price sounds really high for a III. Good thing you didn't sign and decided to educate yourself here.
     
    #8 sipnfuel, Oct 24, 2011
  9. El Dobro

    El Dobro A Member

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    To the OP, what options does the III you're looking at have?
     
    #9 El Dobro, Oct 24, 2011
  10. Kaigler

    Kaigler Junior Member

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    It has some addons. Leather seats and audio package. The price seems pretty standard across the board looking at the Toyota website and different dealer prices. My concern is the lack of any wiggle room.

    I believe they are also screwing me on my trade-in. I have a 2003 Honda Civic with just under 60K miles. It has about $2500 in hail damage. They were offering me just $2,000 initially - which I immediately told them that was too low. They came up to $2,500 but I still think that is low. Kelley Blue Book says it should be worth over $4,000 on a trade-in even with the damage. Any thoughts on this?

    Thank you for all the great responses. It is a huge help.
     
    #10 Kaigler, Oct 24, 2011
  11. richard schumacher

    richard schumacher shortbus driver

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    Yes, it is completely normal for a car dealer to try to screw you :_> I made the mistake of borrowing to buy a new car as soon as I graduated. I advise against it. Instead buy a beater and save up until you can pay cash.

    At the very least, get bids from multiple dealers. The April issue of Consumer Reports has excellent car buying advice. See any library, or their website.
     
    #11 richard schumacher, Oct 24, 2011
  12. El Dobro

    El Dobro A Member

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    The dealers around this area aren't using Kelley or NADA to evaluate trade-ins, they're using Galves which gets its prices from auction sales. The problem with Galves is that you have to suscribe to it to see the prices.
     
    #12 El Dobro, Oct 24, 2011
  13. J0keboy

    J0keboy Junior Member

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    If you can wait until this weekend, you'll get a better deal and rate. Shop around and compare. Good luck!
     
    #13 J0keboy, Oct 24, 2011
  14. fuzzy1

    fuzzy1 Senior Member

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    Is the hail damage tolerable? Does the car otherwise fit your needs?

    A car that young should have plenty of low-cost life ahead of it. If it otherwise fits current needs, I'd repair it and save cash towards a future car. If you can wait, you can pick up a good deal when it pops up.
     
    #14 fuzzy1, Oct 24, 2011
  15. Kaigler

    Kaigler Junior Member

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    The car could last quite a bit longer with the miles. But that's not the point. I'm looking for a new car and pretty sold on getting a Prius.
     
    #15 Kaigler, Oct 25, 2011
  16. Codyroo

    Codyroo Senior Member

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    Dealers make their money on Financing, Final Car Price, your trade in, and any "after market" stuff they can throw on.

    There is a great article on Edmunds regarding dealership tactics

    Confessions of a Car Salesman - Edmunds.com

    Give it a read and be better informed.

    The Prius is an "in demand" commodity, but as people have said, the inventories are filling up (post tsunami), the new model year is coming out, and other cars are coming on line that get "40 MPG" (highway) that will draw some of the demand away from a 2011 Prius. If you can sit tight, you should be able to get some wiggle room in pricing.

    Or look outside your area for a car and have a road trip back.
     
    #16 Codyroo, Oct 25, 2011
  17. fuzzy1

    fuzzy1 Senior Member

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    The more this shows, the less flexible the dealers become.
     
    #17 fuzzy1, Oct 25, 2011
  18. robby100

    robby100 Junior Member

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    I'm from Texas too (DFW area). Let me tell you that the TX Toyota dealers are among the worst in the nation. PM me if you like and I'll
    share some pointers with you.
     
    #18 robby100, Oct 25, 2011
  19. sipnfuel

    sipnfuel New Member

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    My best advice is don't be afraid to walk away, even if this is the car that you want.

    Most of the time they will do anything to keep your butt in the seat.

    If you're not at the point where the dealer wants to kick you out of the place, then you aren't doing it right.
     
    #19 sipnfuel, Oct 25, 2011
  20. Kaigler

    Kaigler Junior Member

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    Well the story took an interesting turn today. We got a much lower interest rate than we had initially thought we were going to get. So we went back to the dealership and haggled a couple of things down and were basically comfortable with what we would be paying monthly.

    They had to do a dealer trade to get the car we wanted there as they only had one Prius on the lot. So they were in the middle of that deal and said they could get us the car and it would be there in the next day or two. Well okay, we went home. Almost home and the dealer called my cell. The owner of the dealership was willing to sell the one they already had on the lot for $1,300 off. It had everything we wanted feature wise but it was just a different color (metallic grey). I wanted white because it is easier to keep clean. But I love the metallic grey. It looks really nice.

    So we got a Prius III w/Leather, audio, fog lights, mirror, mats, and tint for 27k even. I felt like that was a pretty good deal. In the end we were very happy.
     
    #20 Kaigler, Oct 26, 2011
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