What would you expect to save of msrp?

[EWC88 24]

What would you expect to save off the msrp if you were going buy a new truck in full? 

[fishnut 2,358]

In 08 I got over 10k off msrp on A Chevy Colorado 4 door but that was with the GM family discount because my wife's grandfather worked for them for over 35 years. To bad the truck was a piece of crap and I sold it once the warrantee expired. 

[EWC88 24]

That’s what I was thinking $10k coming off but wasn’t sure. Will be reaching out to couple dealerships letting them know what I want and I’ll be paying cash so what’s best deal.

[MartyZ 692]

It all depends on how much over invoice MSRP is, time of the month, especially for dealers who keep a large inventory. Factory incentives, color and options, just to name a few.

I just got my wife a 2017 RX350 for $500 below invoice and they payed off the remaining lease on a RAV4 which was 12 months. Got it end of last October, 10/30 to be exact. They wouldn't let me leave the dealership because they needed to make room for 2018 models.

[EWC88 24]

Looking at doing a 2018 Ford f 150. Color choices I am picking are ones they should have (silver, black). I’ll be stopping at one tomorrow to see what they say, and then my dad will be calling another ford dealer by his business that we deal with.

[stuckinNJ 81]

One piece of advice, DO NOT reveal that you're paying in full up front (ie not financing). Try to get the absolute lowest price (they'll assume you'll finance. If they ask during negotiations how you're paying, avoid answering. Say "I'm not sure yet" or "it depends"). Once they offer a decent price, ask for less and say you'll pay all right now.

When they see the $ right in front of them, they should agree. I've done this a few times when helping my siblings purchase vehicles (I lease).

Good luck and remember: Be prepared to walk. If you're not, they've already won!

[mustang69 505]

Just remember, a dealer makes money on every step in the transaction - sale, finance, extra warranties, etc, so you need to treat it the same way.  Realize that the dealer gets their money up front regardless of how you pay - cash or finance, but they probably get a referral fee to the finance company.    Negotiate a sales price without revealing how you'll pay for it.  Just be ready to do the deal right then or walk away.

[EWC88 24]

Good advice guys thank you! I am prepared to walk away, I will be going to 3 different ford dealers to see, all 3 different states so I shall see!

[Sevenshot 98]

Check true car as well. Gives a good idea to where the dealer can go. Try to get under the number since the average is likely higher from those that pay the sticker price. Good luck. 

[Krdshrk 3,877]

Costco Auto is the way to go.  Got our Honda Pilot for about $500 under invoice price before tax.

[WhiskeyTangoFoxtrot 358]

Costco Auto is the way to go.  Got our Honda Pilot for about $500 under invoice price before tax.

Was this at Edison Honda? Looking myself....

[Krdshrk 3,877]

1 hour ago, WhiskeyTangoFoxtrot said:

Was this at Edison Honda? Looking myself....

 

For Honda for me the closest dealership with Costco Auto was Clinton Honda in Annandale.  I think there's one in like HIllside too.

[JackDaWack 2,895]

Dealerships don't like cash offers, it's not like they are skimming some of it under the table. They like financing, if you can get a bottom low price, finance the car and pay it all off immediately. 

 

[EWC88 24]

^ if having to finance is cheaper I will and the first payment would be the first/last payment lol.  

While at ford today for the gfs escape I talked to a Forman mechanic. Went over the motors with him and he said if I’m buying and plan to keep then v8 all the way. It’s leasing or trading in after 2-3 years then ecoboost. But will give a test drive on both the v8 and 3.5 tnsee what feel I like better.

[fishnut 2,358]

27 minutes ago, EWC88 said:

^ if having to finance is cheaper I will and the first payment would be the first/last payment lol.  

While at ford today for the gfs escape I talked to a Forman mechanic. Went over the motors with him and he said if I’m buying and plan to keep then v8 all the way. It’s leasing or trading in after 2-3 years then ecoboost. But will give a test drive on both the v8 and 3.5 tnsee what feel I like better.

I feel the same way. V6 has to work harder to accelerate and maintain speed than a V8 does there for a V8 should last longer under normal driving conditions. I'l be buying a full size truck(probably F150) after I move to NH and it will defiantly have the V8. 

[67gtonut 847]

61000 flawless miles on my Coyote 5.0......  200K more to go...

[EWC88 24]

10 minutes ago, fishnut said:

I feel the same way. V6 has to work harder to accelerate and maintain speed than a V8 does there for a V8 should last longer under normal driving conditions. I'l be buying a full size truck(probably F150) after I move to NH and it will defiantly have the V8. 

Yea he was telling me how the ecoboost are nice for a short period but otherwise to much to go wrong in a long period, espically the turbos. He did mention how they have seen more of the ecoboost then the v8, just a proven simple motor. He didn’t hate on the eco just only recommended for short time.

[fishnut 2,358]

17 minutes ago, 67gtonut said:

61000 flawless miles on my Coyote 5.0......  200K more to go...

If I had one I wouldn't make it 61,000 without losing my license again lol. You either have a lot of willpower or really good PBA cards. 

[67gtonut 847]

Just now, fishnut said:

If I had one I wouldn't make it 61,000 without losing my license again lol. You either have a lot of willpower or really good PBA cards. 

Well.... in a F150 ..... not as fast as a Mustang..... but it goes good

 

[fishnut 2,358]

48 minutes ago, 67gtonut said:

Well.... in a F150 ..... not as fast as a Mustang..... but it goes good

 

When I'm in a truck I drive it like it's a truck when I'm in a sports car...... I drive it like I stole it. 

[diamondd817 826]

Funny how everyone says how they got their car/vehicle for $500/$1000 under invoice. Did it ever occur to anyone if everyone was buying their car under invoice that all dealerships would be out of business?  So what is the actual invoice?

Just sayin.

[67gtonut 847]

Dealership Franchises get what is called "holdback" which is monies based on other factors of selling the vehicles..... they also get advertising...

The fact is..... New Vehicle sales are usually just tasked to "pay the bills" of the franchise...... the large profit areas are Used Vehicle Sales and the Service Dept.

So even on a $40,000 vehicle..... if you buy it $500 under invoice.... the franchise should still "make" about $1000 or so on it..... this is all approx . numbers of course..

[Smokin .50 1,907]

18 hours ago, fishnut said:

I feel the same way. V6 has to work harder to accelerate and maintain speed than a V8 does there for a V8 should last longer under normal driving conditions. I'l be buying a full size truck(probably F150) after I move to NH and it will defiantly have the V8. 

Move to NH:  V8, 4X4, Plow Pkg!  Make some money pushin' that white stuff around kid!  LOL!

[MartyZ 692]

13 hours ago, 67gtonut said:

Dealership Franchises get what is called "holdback" which is monies based on other factors of selling the vehicles..... they also get advertising...

The fact is..... New Vehicle sales are usually just tasked to "pay the bills" of the franchise...... the large profit areas are Used Vehicle Sales and the Service Dept.

So even on a $40,000 vehicle..... if you buy it $500 under invoice.... the franchise should still "make" about $1000 or so on it..... this is all approx . numbers of course..

To add to this, manufacturers also add incentives and rebates that the dealer can pass to the buyer. So every time you see advertised "$1,000 cash allowance" or "Current Owner Discount", that is actually the manufacturer giving the discount not the dealer.

[Mr.Stu 1,918]

To be able to walk, make sure that if they take your licence to make a copy, you get it back promptly. It's an underhand technique to keep you in the dealership to wear you down - "oh yeah, Bill is just making a copy, he'll be back in a minute", "No, I don't know where he is, he'll be back soon", etc., etc.

Sent from my Pixel using Tapatalk

[raz-0 1,259]

16 hours ago, diamondd817 said:

Funny how everyone says how they got their car/vehicle for $500/$1000 under invoice. Did it ever occur to anyone if everyone was buying their car under invoice that all dealerships would be out of business?  So what is the actual invoice?

Just sayin.

That's cause you don't know how it works. 

So, dealer pays the manufacturer invoice plus delivery for a vehicle. This is likely financed. 

To ensure their dealer network can function, the car manufacturers have what is called dealer holdback. This ranges from 2-3% of vehicle invoice or MSRP. It depends on the manufacturer. When the car is actually sold, the manufacturer gives that to the dealer. 

THEN you have the incentives. These come out of manufacturer profits. Some of them are dealer cash. We have too many of model X, we want them sold, here's some secret cash or the promise of same. SOme of them are competitive or goal based delaer cash. Either for outperforming other dealers ina  region, or for meeting volume requirements. That means for those dealers, the cars effectively cost even less. There's also the consumer cash incentives. These are incentives paid to the buyer, but in reality we almost all hand them directly back to the dealer when buying a car. 

So lets say we have a $20,000 beige toaster on wheels. The invoice of the toaster is $17,500. Dealer holdback is 2% of MSRP. That means they make $400 on that car sold even at invoice. Maybe they get another $200 if they hit volume numbers. You qualify for a competitive cash incentive because of the vehicle you currently drive. There's $500 more. Then maybe there's a regional adjustment because your market isn't going to buy at MSRP or even invoice. Maybe get another $750 there. Now you are discounting to invoice, and You have $1850 of margin. Discount it $500 more and the customer is happy. Push him to the finance office, and you get another $100 finders fee, or if you can sell it to them at a higher rate than the bank is willing to give you on their behalf, you keep even more. Then you shove the warranties at them and maybe make some cash off of the arbitrage business. 

And that's not even getting into the scum baggery of $600 dealer installed stickers, fake warranties, NOT paying off your old loans on vehicles right away, etc. 

The invoice is the actual invoice. The dealer will have to hand that much cash to the manufacturer at some point. But the business isn't that simple. 

 

[diamondd817 826]

2 hours ago, raz-0 said:

That's cause you don't know how it works. 

So, dealer pays the manufacturer invoice plus delivery for a vehicle. This is likely financed. 

To ensure their dealer network can function, the car manufacturers have what is called dealer holdback. This ranges from 2-3% of vehicle invoice or MSRP. It depends on the manufacturer. When the car is actually sold, the manufacturer gives that to the dealer. 

THEN you have the incentives. These come out of manufacturer profits. Some of them are dealer cash. We have too many of model X, we want them sold, here's some secret cash or the promise of same. SOme of them are competitive or goal based delaer cash. Either for outperforming other dealers ina  region, or for meeting volume requirements. That means for those dealers, the cars effectively cost even less. There's also the consumer cash incentives. These are incentives paid to the buyer, but in reality we almost all hand them directly back to the dealer when buying a car. 

So lets say we have a $20,000 beige toaster on wheels. The invoice of the toaster is $17,500. Dealer holdback is 2% of MSRP. That means they make $400 on that car sold even at invoice. Maybe they get another $200 if they hit volume numbers. You qualify for a competitive cash incentive because of the vehicle you currently drive. There's $500 more. Then maybe there's a regional adjustment because your market isn't going to buy at MSRP or even invoice. Maybe get another $750 there. Now you are discounting to invoice, and You have $1850 of margin. Discount it $500 more and the customer is happy. Push him to the finance office, and you get another $100 finders fee, or if you can sell it to them at a higher rate than the bank is willing to give you on their behalf, you keep even more. Then you shove the warranties at them and maybe make some cash off of the arbitrage business. 

And that's not even getting into the scum baggery of $600 dealer installed stickers, fake warranties, NOT paying off your old loans on vehicles right away, etc. 

The invoice is the actual invoice. The dealer will have to hand that much cash to the manufacturer at some point. But the business isn't that simple. 

 

I do know how it works. I was being sarcastic towards the people that think their getting a good or special deal by getting it $500 under invoice, when in actuality, they are getting the same deal as everyone else.

[raz-0 1,259]

5 minutes ago, diamondd817 said:

I do know how it works. I was being sarcastic towards the people that think their getting a good or special deal by getting it $500 under invoice, when in actuality, they are getting the same deal as everyone else.

There are people who walk in the door and get ripped off. So basically they are just saying I didn't get ripped off. Not everyone is getting the same deal out of them. Which is pretty much why people hate car shopping. 

[fishnut 2,358]

11 hours ago, Smokin .50 said:

Move to NH:  V8, 4X4, Plow Pkg!  Make some money pushin' that white stuff around kid!  LOL!

You read my mind.