What is a reasonable amount, below sticker price, to pay on a new car?

[Hikin' Mama]

Thanks!

[readwithem]

We have a saying around here that we don't want to leave money on the table. So whether it's a car, house or piano for our daughter - all of which we purchased within the last few years - we start fairly low (20-25% off the "asking" price) and work from there. I would think a lot may depend on how long the car has been on the lot, what year it is, etc. My dh bought a new car in Dec. but it was special order so he didn't get any off the sticker price, but I think the manufacturer had a kickback or something.

[Krista in LA]

Go to http://www.edmunds.com and you can look up the car you are interested in with the desired equipment. It will tell you the fair price that car is selling for where you live along with the invoice. My mom sells cars and she says that generally, if you can get it for $200 above invoice, it's a good deal. Depending on the car and the market, you might have to pay more.

[Carol in Cal.]

rather than down from the sticker price.

 

You can get the wholesale price from Consumer Reports. They also detail how to bargain for your new car.

 

But, now I always buy used cars.

[Suzanne in ABQ]

Never make an offer to a dealer. You'll never know how low they would have been willing to go if you make an offer. If you live in an area with several dealers within a few hours' drive, then the way to get the best deal is to let the dealers bid for your business.

 

Type up a letter, stating that you plan on buying a car in the next few days, and that you're trying to expedite the process by faxing all the dealers in the area at the same time. Give them your name and phone number. Tell them exactly what you're looking for (make, model, package, options, color (if it matters to you), etc.) Call around to get the names of the sales managers at each of the dealerships, and address the faxes to those specific people (You may save on commision by working directly with a sales manager). Then, send the fax specifically to those managers at all the dealerships (if you have been working with a specific sales person, and you like him, you may want to address the fax to him, or refer to him in your letter to the sales manager).

 

Do this within the last few days of the month because the salesmen/sales managers often have monthly incentives/quotas, and they'll be more likely to jump through hoops for a sale. Then, make sure you have the morning off, so you can answer phone calls. When they call with an offer, ask them if they have the car on the lot, and if it's ready to drive away. If you want an option that their service department will have to add, ask the salesman to call the service dept. to find out exactly how much it will cost (this will vary from dealer to dealer). Once you have the best offer in hand, go that day (if possible) to meet the manager and test drive your car. He may pass you to a salesman to do the paperwork, but the price should not vary by even a single penny.

 

We did this last year and saved $1000 by driving an extra half hour to a different dealer. We got calls from all three dealerships that we had faxed. It was kind of fun to wheel and deal this way, but I never had to haggle, or play any games. I was totally up front with all of them, and expected straight answers in return. When it came time to do the paperwork, we had to watch the salesman and the finance guy very carefully, and we caught a couple "mistakes" that would have cost us money. We don't know if those "mistakes" were really accidental or not, but it paid to be vigilant.

 

Again, let me stress that you want to do all your initial test driving, and all your research, before you buy. When you go in for a test drive, let the salesman know that you're just starting your search, and you're just finding out what's available. Wait until you get you've done your homework, and you have all your ducks in a row. Then, let them play by your rules, which will be laid out in your fax. They usually won't mind. It saves them a lot of time, and simplifies the process because they know exactly what you are looking for.

 

Happy shopping!

[Donna]

then offer $100-200 over that. Sometimes we have to play "hardball" and walk out of the dealership but they always call in a few days and ask "which one do you want?"

[Hikin' Mama]

I have no experience with this and want to get the best deal possible, while still being realistic. Your comments were very helpful!

 

Kim

[Eleni]

We got our car, a new one...for 11,000 under msrp, 9,000 under invoice, and 1500 over what the dealership paid for it.