Automotive

Advice on Buying New Car

  • Last Updated:
  • Aug 12th, 2018 7:10 pm
[OP]
Newbie
Jun 18, 2012
8 posts
18 upvotes
Burnaby

Advice on Buying New Car

Hi guys,

Just looking for some advice when purchasing a new car in a cash deal. On Unhaggle, the car I'm looking at has a dealer cost of $45,310 and there is a manufacturer rebate of $6,000. Does this mean the optimal deal I should be negotiating for is $39,310 + 3-5% dealer profit?

Looking at it bigger picture, the OTD price would be:
$45,310 - Invoice cost
-$6,000 - Manufacturer rebate
+$2,205 - Mandatory fees (freight, other fees)
+$1,359.30 - 3% dealer profit (3%*$45,310)
=$42,874.30 total pre-tax

+$5,144.92 - 12% sales tax in BC
= $48,019.22 total cost OTD

Does the math look right here? Anything I'm missing?

Would definitely appreciate another set of eyes. Thanks!
14 replies
Deal Addict
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Jul 26, 2007
3341 posts
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Toronto
If the $45,310 is the invoice and not msrp, your number looks good. Make sure to start the bid at 1% for out the door price for wiggle room as for sure they will refuse the first offer you put on the table.
Sr. Member
Mar 3, 2018
527 posts
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GTA
Make sure the manufacturers rebate is applied pretax and not after tax. My Lexus rebate was applied after tax. An increase of $720 in total cost in your case (6,000 @ 12%).
Deal Addict
Nov 21, 2013
3026 posts
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OP, you asked for advice, so here's one, the RFD of advices regarding the purchase of a car: Do not buy a new car, unless you are in a rush take your time to find the model you want with 1 or 2 years old, bring it to your local confident mechanic for inspection. You will save more, although still under warranty... New cars can lose up to 30% value within the first year, if not more... Some will think that a $6K rebate on a 2018 is a great deal when the 2019 cones out, but you already have a 1 year old car, less the mileage
IMHO
[OP]
Newbie
Jun 18, 2012
8 posts
18 upvotes
Burnaby
Thanks everyone for your advice, will definitely consider them!
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Jul 26, 2007
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Xenova wrote:
Aug 12th, 2018 1:18 pm
Thanks everyone for your advice, will definitely consider them!
All my cars are new and their cars are new too, just they like other people to buy their used cars.
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Sep 1, 2004
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DoorCrasher wrote:
Aug 11th, 2018 10:56 pm
OP, you asked for advice, so here's one, the RFD of advices regarding the purchase of a car: Do not buy a new car, unless you are in a rush take your time to find the model you want with 1 or 2 years old, bring it to your local confident mechanic for inspection. You will save more, although still under warranty... New cars can lose up to 30% value within the first year, if not more... Some will think that a $6K rebate on a 2018 is a great deal when the 2019 cones out, but you already have a 1 year old car, less the mileage
IMHO
The answer isn't not buying new, it's that 2 months worth of toxic new car smell worth 30% depreciation. :D
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Sep 21, 2010
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Xtrema wrote:
Aug 12th, 2018 2:09 pm
The answer isn't not buying new, it's that 2 months worth of toxic new car smell worth 30% depreciation. :D
There are few things in life that match the joy of buying a new car, even w/ its potentially-carcinogenic particles. Let's face the facts, new is awesome, who wants to buy other ppl's used goods?
The richest 1% of this country owns half our country’s wealth, 5 trillion dollars, one-third of that comes from hard work, two-thirds comes from inheritance, interest on interest accumulating to widows and idiot sons, and what I do.. <find the rest>
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Nov 21, 2013
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tranquility922 wrote:
Aug 12th, 2018 3:10 pm
There are few things in life that match the joy of buying a new car, even w/ its potentially-carcinogenic particles. Let's face the facts, new is awesome, who wants to buy other ppl's used goods?
Me…!! ;) 8 months old car, a 2013 bought in march 2014, almost saved $10K for less than 9000Kms old car
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DoorCrasher wrote:
Aug 12th, 2018 3:28 pm
Me…!! ;) 8 months old car, a 2013 bought in march 2014, almost saved $10K for less than 9000Kms old car
It was supposed to be a rhetoric question lol. Anyway, yes, that's the factor, new/pay much more vs inverse. Pros/cons. I personally would take the $$$ hit to get new.
The richest 1% of this country owns half our country’s wealth, 5 trillion dollars, one-third of that comes from hard work, two-thirds comes from inheritance, interest on interest accumulating to widows and idiot sons, and what I do.. <find the rest>
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Nov 21, 2013
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tranquility922 wrote:
Aug 12th, 2018 3:38 pm
It was supposed to be a rhetoric question lol. Anyway, yes, that's the factor, new/pay much more vs inverse. Pros/cons. I personally would take the $$$ hit to get new.
Not me. I am a RFD'er, afterall ;) ;) ;) it always depend on the car's condition. That why in my post I said that you must be patient, not on a rush to change car
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DoorCrasher wrote:
Aug 12th, 2018 3:47 pm
Not me. I am a RFD'er, afterall ;) ;) ;) it always depend on the car's condition. That why in my post I said that you must be patient, not on a rush to change car
Yes, I guess I should deregister from this site lol. For me, I can't take using other ppl's stuff. Oh well.
The richest 1% of this country owns half our country’s wealth, 5 trillion dollars, one-third of that comes from hard work, two-thirds comes from inheritance, interest on interest accumulating to widows and idiot sons, and what I do.. <find the rest>
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Jul 17, 2008
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DoorCrasher wrote:
Aug 12th, 2018 3:28 pm
Me…!! ;) 8 months old car, a 2013 bought in march 2014, almost saved $10K for less than 9000Kms old car
What was that car?

I agree with you, I would've picked a 8month old car too for saving 10k. Then again, I got a brand new Kia Forte LX+ 2015 for only 17600 all in and 0% finance for 60 months. Like you said, you must be patient until the right deal comes around the corner
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Messerschmitt wrote:
Aug 12th, 2018 6:22 pm
What was that car?

I agree with you, I would've picked a 8month old car too for saving 10k. Then again, I got a brand new Kia Forte LX+ 2015 for only 17600 all in and 0% finance for 60 months. Like you said, you must be patient until the right deal comes around the corner
Kia Optima EX 2.0T. I have been patient, and found the one I wanted with the panoramic sunroof. Turbo is an extra, I do not need it, but it is well equipped, so I am happy so far. Bought a Kia Rio for the wife, a 2014 bought in 2017. A little holder at the purchase, but mileage was good at about 30K Kms and we were a bit on a rush as the other car ( a 2006) almost died

edit: corrected typos that made the post almost unreadable ;)
Last edited by DoorCrasher on Aug 12th, 2018 7:11 pm, edited 1 time in total.
Deal Addict
Nov 21, 2013
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Messerschmitt wrote:
Aug 12th, 2018 6:22 pm
What was that car?

I agree with you, I would've picked a 8month old car too for saving 10k. Then again, I got a brand new Kia Forte LX+ 2015 for only 17600 all in and 0% finance for 60 months. Like you said, you must be patient until the right deal comes around the corner
And, about the 0%, one should do the math as if you pay "cash" (money can come from, by example, HELOC) sometime they have cash incentive rebate. 0% is often not a real 0%
Never buy a car on more than 60 months. My father bought a Kia optima ex 2.0T 2013 as well, used, and the lady who sold him the car couldn't drive anymore because of a serious disease, she had a loan initially 84 months, and she had to pay $7K to the bank, this $7K is over what my father gave her to buy the car...

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