Help with car price negotiations on the prime

Costco is very good, but doesn't cover all the models of all the makes. If the Prime is in short supply, it won't be on the Costco list. Even then, the stealership can add totally worthless items at a high cost to drive up the price.

It's never easy. Buying a car is always the consumer's biggest purchase where they negotiate against pros. Even buying a house, you're negotiating against another amateur...the seller.

Decide what you want. Use TrueCar or a similar source as a guide for what they're actually selling for. Buying a new car and valuing your trade in are two separate deals. Don't let the pros get your head spinning with numbers being thrown around between new car price, trade in value, monthly payments (and the unmentioned length of the financing), and down payment. Look at YouTube videos on the infamous 4-square technique dealers use.

--Negotiate the price of the new car. Refuse to pay for anything they try to cram on it that you don't want...paint sealant, window VIN etching, etc. Remember...they need to sell cars, or they don't get a paycheck. You want to buy a new car, but your old car will still get you home if you walk out of the showroom. Their need is greater than your want. You can (and should) walk away if the deal is bad, and let them know that you're ready to walk. Take time. Time is always on your side. Silence is a strong tactic. Tell them what you want to tell them, then stay silent. Don't feel nervous or impolite and feel like you have to keep talking. Make them make the next move. If appropriate, say, "No." The salesman will have to carry your offers back and forth to the sales manager. The salesman will act like he's on your side. Never-ever. It's all an act. If they, in essence, throw you out, leave the salesman your phone number. Tell him that he can call you when the price is right for you.
--After the new car price is set, negotiate how much you'll get for your trade in. If you want to hard-ball it, tell them that they must pay you the value shown on the Mannheim Market Report which shows how much they'd pay for the car (cleaned up) at the Mannheim wholesale auction. NADA and KBB (Kelley Blue Book) are sometimes way off for values...low in my region of the country.
--Know how you'll finance. Get their best offer and know what other offers you can get--your bank or credit union, etc. Don't tell them in advance if you'll pay by cash. They get a kick back from the lender, and a bigger kick back if they get you into a high interest loan.
--The so-called finance manager is paid by commission. If he doesn't sell you something extra, he doesn't get paid. Stiff him. Buy nothing extra. No extended warranty, no wheel & tire warranty, nothing. Tell him you will not pay the documentation fee. Sometimes that works, and sometimes it has to be paid, but try hard to avoid paying it. Get stubborn. Again, take your time. If you'll really sleep better buying an extended service contract (the so-called extended warranty), don't buy it today. Get the best prices from other dealerships across the country on the internet, then either buy from them or take that price to your local dealership for them to match. Buy only the car brand's service contract, not some off brand that the dealership might sell for a higher profit. Toyota Financial Services calls theirs the Vehicle Service Agreement (VSA). If you buy one, buy only this one for your new Toyota.

It's a crappy system. But, we gott'a do it. You certainly don't have to tell the salesperson the whole truth. The only time a car salesman tells the truth is when he's in the little booth and says, "Father, forgive me...."

 

My 2010 Prius was the first new car I bought that I actually haggled and got a good price for the time. Now with my soon to be Prime order, I'm back to paying MSRP, that was one of the conditions of the order.

 

Hey Mr. Comer! That's one of the tough things: the car dealers get to set the rules. Our big power is the single word, "NO !"

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But I really want a Prime!

 

The irony about this whole pricing thing is that in the end, we the consumers are the ones setting the price of the car. The cars selling on the East Coast are being discounted heavily, and they don't have much value, while the cars on the West Coast are selling for full MSRP and are therefore of greater value. In the Midwest, the cars are priceless since very very few are being sold. Toyota is experiencing a general sales slump right now, so I expect discounts to continue. Dealers will keep trying to raise profits by tacking on accessories; they're having a tough time right now. You may not care, but dealers keep our cars going and we all need the good ones!. I repeat, If you don't like haggling, pay the asking price!!. If you only spend 2 hours haggling, and get $400 off, you're essentially earning $200/hour. Not many jobs pay that today!
Less politely, shut up and enjoy the bloody car; it's marvelous!!. Bob, above was not directed at you!. Bob, I hope you can start enjoying the car soon! Good luck, Henri

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I really don't have a choice on the haggling having special ordered the car, they said up front I'd have to pay MSRP and if I didn't like that, no order. They did say they'd move a bit on my trade in, so there is a little room there. One good thing about that is they can't add any more money to the MSRP. (other than all their service upsells, which I suspect i'll get talked to about!)

It looks like it's getting close, and I have no doubt that I will enjoy it!

 

Dude, it'll be an early Christmas! I expect an ear to ear grin!!

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