How much would you expect to negotiate down the price of a new car?

[Teresa in MO]

my dd is looking for a new car after hers was totaled due to a flash flood.  She is looking to buy new.  We have never bought new and have only bought private party.  We know absolutely nothing about negotiating the price of a new car.  She obviously will not have a trade in.  How much can we expect them to lower the price through negotiating?  I know this will vary, but we have no idea what to expect.  I have read the threads here on buying a new car.  Any help would be greatly appreciated.

[Tap]

Edmunds can help you figure out what a fair price is in your area.

 

 

If you are looking for a Subaru and are in the Portland Oregon area, I have an amazing connection to get a good price!

[Happy]

I used a CarProUSA.com authorized dealer. Look on their website to find whatever brand of dealership you want--hopefully they have some dealers in your area. If you have a CarPro certificate, you will deal directly with a manager. He will give you the best price on the cars you like. If you are happy, you proceed. None of the stupid haggling back and forth between your salesperson and their manager. I bought a new Camry last year--it was the most fun, RESPECTFUL car buying process I've ever been through. I will never buy another car any other way.

 

For what it's worth, I got about $2K off the price of my car, plus Toyota rebates, and 0 down, 0% interest. I was happy.

[gardenmom5]

It's been awhile - so I don't remember the ratio. (dh audited dealerships - and he saw their loans.  he knew exactly what the mark-up was.)  the mark up is FAR more than most people think.  btw:  I will NOT pay the "Costco" price for a new car.  it's a good deal for the dealership.

 

two things - you can get a better deal from larger dealerships, or manufacturer owned dealerships.  also - be prepared to walk if they won't come down.  (or one whiney women who was complaining the dealer wouldn't give her her car - honey, the deal isn't closed, it's not your car.  walk out. that'll usually get them moving.)

she should know exactly what she wants before she goes in = then do online research for what the price should be.  auto-brokers generally do have the best prices.

my last new car - I paid less than my friend did for the exact same car three years previously. and they didn't pay top dollar.

don't finance through the dealer either. - they make lots of money that way.

[Carol in Cal.]

I negotiate up from the wholesale price rather than down from whatever inflated artificial so-called sticker price the dealer has slapped onto the car.

[Teresa in MO]

I negotiate up from the wholesale price rather than down from whatever inflated artificial so-called sticker price the dealer has slapped onto the car.

How would you find the wholesale price?  I assume this is the price the dealer pays for the car.

[Carol in Cal.]

How would you find the wholesale price?  I assume this is the price the dealer pays for the car.

Consumer Reports has a report you can buy.

It's not that expensive and it can save you a lot of money.

 

Also, be prepared to leave if you don't get the deal you want.

 

Say, "On a hot day in June, when it's the end of the month and you need to sell one more car to make your quota, call me and offer me this deal."  Probably they will.

[ThisIsTheDay]

Consumer Reports has a report you can buy.

It's not that expensive and it can save you a lot of money.

 

 

This.

 

There is no set amount.  It will vary widely based on the brand of the car.  You will likely have a lot more room to negotiate with an American made car, for example, than a Japanese brand (regardless of where it was made).

 

Go to Consumer Reports and get the report.  I've done this before, although it's been a very, very long time.

[JFSinIL]

We  always look for less then 30,000 miles, gently used vehicles.  Get a lot more car for a lot less money that way.

[melmichigan]

I have never paid anything more than 2% under invoice, obviously with close-out year-end type things we have gotten lower.  I work up outside financing as low as possible and then have the dealer beat it, so far they always have.  I paid 0% on my Suburban and 1.75% on our latest Jeep, which was a custom order.  I also purchase any extended warranty for dealer cost.  Learn the price ahead of time, call them up and mention what you will buy for and wait for them to call when they need to make quota, most dealers allow you to buy in the first year after you purchase, and you never want to finance a warranty plan.  I plan to keep this latest Jeep and bought the lifetime warranty for less than they quoted the 3 year plan.  

 

Shop the dealers, do your homework and don't impulse buy, better yet, always be willing to walk away.  :auto:

[Cottonwood]

yep, ive always worked from the invoice..up.  i line up the financing with my bank ahead of time.  i call dealerships in my area on the phone, tell them what im looking for, how much over invoice im willing to pay and i tell them i will drive to the dealership willing to give me that deal.   i do most of the deal over the phone.  Ive done this three times successfully in my life, drove up to the dealership only to finalize paperwork.  They have already contacted my bank and i just go sign.  Generally i just google invoice prices.  Once there was only one Honda in the color/options i wanted and it was one state away.  the three dealerships i called all saw it in the tri-state database and wanted to deal with me so i was able to use that to my advantage to pay well below invoice with more options than i even wanted!

[J-rap]

On our recent new car (not U.S. made), we were not able to negotiate much on the price.  BUT, we were able to talk the interest way down, and get lots of extra stuff thrown in that usually costs extra.  Also, we were able to negotiate up our trade-in. 

[Lolly]

Many of the dealerships here do  not negotiate on new cars. This is true of all Toyota dealerships I have been in for many years now. You can negotiate on some add ons (Dd needs lumbar support in the seat, they added it free), but the price/packaging is nonnegotiable.

[Miss Tick]

A credit union we were loosely affiliated with offered "fleet sales service", where we told the guy what we wanted, he contacted dealerships in a multi-state area, found the closest matches and sent then to us to choose. We picked (or could have modified the search), then paid fleet price - I don't remember what the mark-up was, but it was low, designed for large-volume purchasers. This guy got his son to help deliver the car to our house, but my twins had just been born, so I don't think that was part of the standard package. With our other car we picked it up at the bank.

[MomatHWTK]

I've noticed that dealerships in our area seem to be pricing closer to the edge to begin with, so the room for negotiation is slim.  When we last went through the process, we priced similar vehicles online to get an idea of what we should pay. 

[Annie G]

I've noticed that dealerships in our area seem to be pricing closer to the edge to begin with, so the room for negotiation is slim.  When we last went through the process, we priced similar vehicles online to get an idea of what we should pay. 

 

Same here. The economy here never recovered and dealers price their cars close to what they actually need to get out of them to encourage people to come in.  Some are so used to getting thousands off the asking price that thy get upset when $500 is all the dealer is willing to come down, but when they check around, they see that it was a decent deal. 

 

So it's becoming more of a climate of 'did I pay what the car is worth' rather than the old style 'how much did I talk them down'. 

[Lanny]

You  need to purchase the Edmunds New Car Price book or get their data online. You need to know the spread, between what the dealer pays for a vehicle and the sticker price.  Plus the Transportation cost.  They have a lot more spread on an expensive vehicle than on a low cost vehicle.  There are also web site services that will negotiate a deal for you and/or have arrangements with some dealers who will sell to their customers at "Fleet" prices.

 

[6packofun]

yep, ive always worked from the invoice..up.  i line up the financing with my bank ahead of time.  i call dealerships in my area on the phone, tell them what im looking for, how much over invoice im willing to pay and i tell them i will drive to the dealership willing to give me that deal.   i do most of the deal over the phone.  Ive done this three times successfully in my life, drove up to the dealership only to finalize paperwork.  They have already contacted my bank and i just go sign.  Generally i just google invoice prices.  Once there was only one Honda in the color/options i wanted and it was one state away.  the three dealerships i called all saw it in the tri-state database and wanted to deal with me so i was able to use that to my advantage to pay well below invoice with more options than i even wanted!

 

So you buy cars you have not seen or driven or had checked by a mechanic?  (Or are you mainly buying new, very lightly used cars?)

[MotherGoose]

Buy at the end of the month when they are anxious to meet quotas.

[melmichigan]

Based on comments I will add the experience with our last Jeep.  I knew exactly what I wanted.  I did the work-up and knew exactly what it would cost line by line on an invoice, and I knew my financing numbers before I ever step foot in the door at the dealership.  They are much more willing to deal when the work has all been done.  It was simply a matter of them putting in the computer order, and securing lower financing and we were done, waiting on delivery.  

[Cottonwood]

So you buy cars you have not seen or driven or had checked by a mechanic?  (Or are you mainly buying new, very lightly used cars?)

 

In these three experiences I talked about, I was buying new, off the lot.  I did do a test drive while there, and was told each time I had a number of days to contact them should there be any issues that would void the purchase for me.  I took the cars the first two times to my dad who gave them his super-thorough (read..anal here lol) inspection.  DH was around for the 3rd.  But yes, these were new.  I have had my bigger share of used cars though, and my DH handles those purchases.

 

ETA: in each case, by the time I make the call to the dealership, I have researched my choice to death, know exactly what I"m looking for down to every option possible.  In one of the cases, I had visited the Nissan lot 3 times prior because it just wasn't coming together for me so I needed to keep looking inside the Pathfinder ..any Pathfinder..to make sure I like Pathfinders...and doing one more test drive.  So it's not like I don't know anything physically about the model I am buying.   I'm very decisive (or..opinionated actually) so things narrow down quickly for me.  All in all, the choosing process takes me around 2 months...maybe 3.  The phone call and deal is quick tho.  And by the time I pick up the car, if it is the exact car they say it is, it only boils down to an issue of mechanics and soundness and since all the men in my life are gear heads, I am very comfortable with that.

[klmama]

When we last bought a new car, dh used www.truecar.com to find out a fair price for the car he wanted.  The local dealers weren't willing to sell for that, but dh found one an hour away was willing.  We drove over, test drove it, and bought it, brought it home in just a few hours.  The car we wanted at the price we wanted, with no dickering or game playing involved.  Best car buying experience we've ever had.  If we ever want another new car, we'll use truecar for price guidelines and go to that dealership again.

 

 

[Suzanne in ABQ]

Use the resources others have mentioned above (Edmunds, Consumer Reports, Truecar.com, etc), and do your research.  

 

Write a letter listing exactly what you are looking for and the price you are wanting to pay.  Mention that you are shopping other dealerships as well, and that you are planning to make your decision within the next couple days.  Ask them to contact you to tell you what they have to offer.  If you can include the name of the Sales Manager, that is helpful (check their websites).  

 

Wait until a few days before the end of the month, if possible, then FAX that letter to all the dealerships within a two hour radius of your house (or whatever distance you need to include to get at least three quotes).  Don't use e-mail.  Those get buried too easily.  You want something that the sales person will be holding in their hands as they're walking about, not an e-mail locked away in a computer.

 

Then, sit by the phone.  Within an hour or two, you should get a phone call from each of the dealers, trying to talk you into coming in to see what they have available.  Politely ask for specifics on what they have on their lot, and make it clear that you are taking notes, and you'll get back to them after you've heard from a couple more dealers.  When you have enough information, call them each back and tell them what the others are offering, giving them a chance to better their offer.  With very little headache, you'll know the best offer available, and you can go seal the deal.

 

We did this when we bought our last new car, and it was an awesome experience.  I refuse to play the negotiating dealer game, sitting in a cubicle while the salesman runs back and forth between us and the manager, throwing prices around, feeling like we're being taken for a ride.  This method puts you in charge.