Automotive

New Car - Salesman gave me his cost price and "told me" to make an offer...what should i make him?

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  • Jan 13th, 2018 9:26 pm
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Well looking at the salesman point of view, there are tons of people asking him for his best price but not providing an initial number to begin with. When he gives a number, you're going to take that number and ask another dealer to match it. That's why many will not give a number out first and it seems like time wasting for the salesman. Just offer him invoice + $800 plus tax and PDI/freight and that's it. No other numbers, no BS.
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Ex Koodo customer. Beware of their tactics.
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bomber17 wrote:
Nov 6th, 2017 12:35 am
Well looking at the salesman point of view, there are tons of people asking him for his best price but not providing an initial number to begin with. When he gives a number, you're going to take that number and ask another dealer to match it. That's why many will not give a number out first and it seems like time wasting for the salesman. Just offer him invoice + $800 plus tax and PDI/freight and that's it. No other numbers, no BS.
If the sales is smart s/he'll just say to ask her/him last.
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Apr 2, 2006
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thatsnazzyiphoneguy wrote:
Nov 5th, 2017 11:32 pm
Yes Im looking at 3 toyota dealers not just the one. thats interesting to know dealers sourcing a car from another place shouldnt effect the deal. one of the salesmen from another toyota place said i wouldn’t get as good of a deal as buying one they had already in stock on the lot.

ANYWAYS, so i took one of the RFDers advice and asked what his best price is and this was the response I got:

"I don’t know what to say you have probably gotten prices from other places. If I could do 800 over would you buy the vehicle. I am making this so simple for you! What number would earn your business and if I can do that how would you leave your deposit. We can do everything over the phone.
Thanks"

he seems a little agitated
Are you located in the GTA? If so, you can avoid the headache by going to Geoff @ Erin Park. If not, then you need to know your numbers! You already know CarCostCanada numbers, determine the profit the dealer is making and see if that is what you wish to pay.
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thatsnazzyiphoneguy wrote:
Nov 5th, 2017 11:32 pm
Yes Im looking at 3 toyota dealers not just the one. thats interesting to know dealers sourcing a car from another place shouldnt effect the deal. one of the salesmen from another toyota place said i wouldn’t get as good of a deal as buying one they had already in stock on the lot.
To a certain extent, that's correct. The dealers are supposed to make stock available to other dealers but I know in talking to dealers, they don't like to do that in cases where the other dealer is an (*^*!!hole or if there's money to be made on the vehicle (ie it's in short supply but high demand). So, it really depends on the situation.
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bomber17 wrote:
Nov 6th, 2017 12:35 am
Well looking at the salesman point of view, there are tons of people asking him for his best price but not providing an initial number to begin with. When he gives a number, you're going to take that number and ask another dealer to match it. That's why many will not give a number out first and it seems like time wasting for the salesman. Just offer him invoice + $800 plus tax and PDI/freight and that's it. No other numbers, no BS.
Some dealers fool around with PDI/freight amounts as well. The best thing would be to always work with OTD pricing which is one figure that includes everything. After all, at the end of the day, you don't care if PDI is X amount at one dealership and Y amount another... you just care how much it's going to cost with EVERYTHING included.
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OP, tell him, if he wanted to do invoice + $800 on the 2018, then sure. Shouldn't matter to him right? The cost is the cost. The $800 profit is the $800 profit regardless of the model year.

But we all know it obviously does, because the 2017 is a year old so it has depreciated. He knows it. You know it. Everyone knows it. Don't buy into the "good luck getting it for below invoice" crap.

If you buy the 2017 vehicle, you're doing them a favour and clearing inventory, not the other way around. If it was in "high demand", it would be sold out. It's not like it just got shipped from the factory yesterday.

Finally, with all that said, you have to decide how much are you willing to pay and be happy about the price for a 2017 and a 2018. Then get it for that price because at the end of the day, what a bunch of people on the internet think is a fair price is kind of irrelevant if you'd be just as happy paying $x vs $y. :)
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Sep 9, 2013
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Op what are the finance rates between the 17 and 18 year models? Are you paying cash?
[OP]
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hulk007 wrote:
Nov 6th, 2017 2:19 pm
Op what are the finance rates between the 17 and 18 year models? Are you paying cash?
kenchau wrote:
Nov 6th, 2017 2:04 pm
OP, tell him, if he wanted to do invoice + $800 on the 2018, then sure. Shouldn't matter to him right? The cost is the cost. The $800 profit is the $800 profit regardless of the model year.

But we all know it obviously does, because the 2017 is a year old so it has depreciated. He knows it. You know it. Everyone knows it. Don't buy into the "good luck getting it for below invoice" crap.

If you buy the 2017 vehicle, you're doing them a favour and clearing inventory, not the other way around. If it was in "high demand", it would be sold out. It's not like it just got shipped from the factory yesterday.

Finally, with all that said, you have to decide how much are you willing to pay and be happy about the price for a 2017 and a 2018. Then get it for that price because at the end of the day, what a bunch of people on the internet think is a fair price is kind of irrelevant if you'd be just as happy paying $x vs $y. :)
2017 models have 3.99% for 84 months and 4.29% for 2018 models.

again im looking at 2017 because msrp they are cheaper and still "new" for the exact same car. im also assuming a 17 model would save more money and get a better discount since there something dealers want to get off the lot.

i guess iil email him back asking what the OTD price is
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thatsnazzyiphoneguy wrote:
Nov 6th, 2017 2:37 pm
2017 models have 3.99% for 84 months and 4.29% for 2018 models.

again im looking at 2017 because msrp they are cheaper and still "new" for the exact same car. im also assuming a 17 model would save more money and get a better discount since there something dealers want to get off the lot.

i guess iil email him back asking what the OTD price is
Yep. That way there isn't any surprises as well if you do decide to go with the deal and start talking to the finance manager...

As a side note, if they won't move on the price, see if they will throw in a few oil changes or give you a flat percentage discount on accessories.
[OP]
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Gutty96 wrote:
Nov 5th, 2017 5:44 am

Well, pretty much. If he had the best price, then you start negotiating with him to see if you can squeeze a little more.
MrWhiteCoffee wrote:
Nov 5th, 2017 2:00 pm

Highlander is an in demand vehicle so imo there's less room to negotiate. First thing in negotiating is knowing your BANTA and establish that. But definitely initiate an offer first knowing even if it's fair, dealer won't likely accept it off the bat. Offer token above invoice like $500 above invoice and see how they respond would be what I would do.

Note: if it wasn't an indemand vehicle like Highlander $500 over invoice would be closer to max I will pay but for high demand cars, it's different
garytheduke wrote:
Nov 5th, 2017 2:51 pm
If you are only saving a few hundred dollars buying the 2017 then I would look at the 2018. There should be a $3K to $4K difference in price here.
That will be the loss when you trade in a 2017 vs. a 2018 down the road.
JC69 wrote:
Nov 5th, 2017 10:58 pm
If you just keep negotiating with only one dealership you're not going to get the best deal. Do some research, find the lowest price people have consistently paid in your area and use that or just below as the starting point. Also only use an out-the-door price or you're inviting the dealers to add bogus fees to make it seem like you're getting a deal on the pre tax and fee price. Use the email technique and don't fall for the "come in and we can chat" technique the dealers will use. They do that so they can wear you down and make you sign something just to get out of there.
JC69 wrote:
Nov 5th, 2017 11:35 pm
800 over....but you should supply the figures with freight, PDI and tax and submit an out the door price. Otherwise you'll find that 800 over has morphed into something more like 1500 over after "etching" and "tire warranty" etc.
tranquility922 wrote:
Nov 5th, 2017 11:41 pm

Exactly, he's trying to cloud up things and confuse OP. Just ask him for the OTD price. If he doesn't want to do biz or is "agitated", he's not the only dealer in town and believe me there are MANY others that will play ball. If he's giving you attitude, I'd just walk, not worth it.
bomber17 wrote:
Nov 6th, 2017 12:35 am
Well looking at the salesman point of view, there are tons of people asking him for his best price but not providing an initial number to begin with. When he gives a number, you're going to take that number and ask another dealer to match it. That's why many will not give a number out first and it seems like time wasting for the salesman. Just offer him invoice + $800 plus tax and PDI/freight and that's it. No other numbers, no BS.
TKMC26 wrote:
Nov 6th, 2017 1:13 am
Are you located in the GTA? If so, you can avoid the headache by going to Geoff @ Erin Park. If not, then you need to know your numbers! You already know CarCostCanada numbers, determine the profit the dealer is making and see if that is what you wish to pay.
craftsman wrote:
Nov 6th, 2017 2:39 am

Some dealers fool around with PDI/freight amounts as well. The best thing would be to always work with OTD pricing which is one figure that includes everything. After all, at the end of the day, you don't care if PDI is X amount at one dealership and Y amount another... you just care how much it's going to cost with EVERYTHING included.
kenchau wrote:
Nov 6th, 2017 2:04 pm
OP, tell him, if he wanted to do invoice + $800 on the 2018, then sure. Shouldn't matter to him right? The cost is the cost. The $800 profit is the $800 profit regardless of the model year.

But we all know it obviously does, because the 2017 is a year old so it has depreciated. He knows it. You know it. Everyone knows it. Don't buy into the "good luck getting it for below invoice" crap.

If you buy the 2017 vehicle, you're doing them a favour and clearing inventory, not the other way around. If it was in "high demand", it would be sold out. It's not like it just got shipped from the factory yesterday.

Finally, with all that said, you have to decide how much are you willing to pay and be happy about the price for a 2017 and a 2018. Then get it for that price because at the end of the day, what a bunch of people on the internet think is a fair price is kind of irrelevant if you'd be just as happy paying $x vs $y. :)
hulk007 wrote:
Nov 6th, 2017 2:19 pm
Op what are the finance rates between the 17 and 18 year models? Are you paying cash?
craftsman wrote:
Nov 6th, 2017 7:05 pm
Yep. That way there isn't any surprises as well if you do decide to go with the deal and start talking to the finance manager...

As a side note, if they won't move on the price, see if they will throw in a few oil changes or give you a flat percentage discount on accessories.
HEy guys! I i replied back asking for his OTD price. and this is what he sent me...

does that seem reasonable? this was the 800 "he" offered.

I have looked at banks for financing but there rates are no where near as good as toyotas.
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thatsnazzyiphoneguy wrote:
Nov 7th, 2017 11:45 am
HEy guys! I i replied back asking for his OTD price. and this is what he sent me...

does that seem reasonable? this was the 800 "he" offered.

I have looked at banks for financing but there rates are no where near as good as toyotas.
It's a good deal if there's no factory incentives on the car , you're getting a 7% reduction

But what's the Toyota friends and family? Sounds like a factory incentive? If so, those are from manufacture and separate from dealer discount

I assume freight/pdi/air tax are the correct amounts?
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Aug 29, 2011
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Seems a little high for a 2017. Even the interest rate seems high for a car dealer. I would be looking at either another $1500 off the car or an interest rate reduction of 2%.

The invoice itself while informative is usually not indicative of the current value of a car. A 2017 for all intents and purposes is a year old used car. As soon as you drive off the lot that is how it will be perceived.
The Duke
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Jul 5, 2011
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MrWhiteCoffee wrote:
Nov 7th, 2017 12:36 pm
It's a good deal if there's no factory incentives on the car , you're getting a 7% reduction

But what's the Toyota friends and family? Sounds like a factory incentive? If so, those are from manufacture and separate from dealer discount

I assume freight/pdi/air tax are the correct amounts?
It's a letter of introduction from someone who works at the manufacturer - everyone that works at the plant can call a hotline and get a code to send to a friend or family member or whoever really.
garytheduke wrote:
Nov 7th, 2017 12:58 pm
Seems a little high for a 2017. Even the interest rate seems high for a car dealer. I would be looking at either another $1500 off the car or an interest rate reduction of 2%.

The invoice itself while informative is usually not indicative of the current value of a car. A 2017 for all intents and purposes is a year old used car. As soon as you drive off the lot that is how it will be perceived.
Sorry but this is just silly.
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Aug 29, 2011
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Sorry but this is just silly.
[/quote]

Its not your money to lose. No reasonable person takes the first offer from a dealer. It is a starting point.

The dealer offers the current value of the car at $46,400 not the new invoice price of $49,995. You the buyer think its lower because its not a new model but a year old.
The Duke
[OP]
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Oct 17, 2010
1228 posts
102 upvotes
MrWhiteCoffee wrote:
Nov 7th, 2017 12:36 pm

It's a good deal if there's no factory incentives on the car , you're getting a 7% reduction

But what's the Toyota friends and family? Sounds like a factory incentive? If so, those are from manufacture and separate from dealer discount

I assume freight/pdi/air tax are the correct amounts?
garytheduke wrote:
Nov 7th, 2017 12:58 pm
Seems a little high for a 2017. Even the interest rate seems high for a car dealer. I would be looking at either another $1500 off the car or an interest rate reduction of 2%.

The invoice itself while informative is usually not indicative of the current value of a car. A 2017 for all intents and purposes is a year old used car. As soon as you drive off the lot that is how it will be perceived.
xjesterxx wrote:
Nov 7th, 2017 1:04 pm

It's a letter of introduction from someone who works at the manufacturer - everyone that works at the plant can call a hotline and get a code to send to a friend or family member or whoever really.



Sorry but this is just silly.
garytheduke wrote:
Nov 7th, 2017 1:09 pm
Sorry but this is just silly.


Thanks for the input guys!

As one you pointed out to check if its all the fees included, tax, freight etc.i emailed the salesmen and he confirms it is. the only thing not in the price are plates.

I guess im wondering is...how should i proceed or respond back with?

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