Used car negotiation at a dealership

Used cars are in very high demand right now with prices at an all time high. I doubt you will have much luck.

Only way to do is try. Try both dealer and private used car market.

ausername wrote: ↑ I am looking to purchase a used rav4 from a toyota dealership. i have spent alot of time researching what trim level i want as well as the corresponding price spread based on dealership and private ads on kijiji.

How likely are dealerships willing to lower the vehicle price as well as add in winter tires, rims and a hitch for free? i hear that there is a major car shortage and excessive demand for cars, thus there is no reason why any dealer would negotiate in favour of a consumer.

Dealer will NEVER negotiate in favor of the customer, they are in business to squeeze every nickel they can out of you. PERIOD.

ausername wrote: ↑ Is buying from a [toyota] dealership a bad idea?

If they have the vehicle you want then its not a bad idea... BUT...

Have your financing in place before you go in.
Negotiate the On The Road price only.
Have a backbone to say NO too all the extras that you are going to be told you NEED.
Get everything in writing.
Be prepared to walk out if things get fishy.

I've bought many used cars. Don't bother negotiating tires and extras that you would normally look at with a new car. Just better off getting the stuff you want elsewhere or even kijiji (winter tires, hitch, etc..).

Like others have said, used cars are selling well and especially a sought after rav-4. Good luck!

You want them to lower the price of the vehicle and toss in like 2-3k worth of extras? I have a feeling you're going to leave that dealer disappointed.

thank you, i read about that too, and to check carfax and independent inspection.
i would buy vehicle in cash

mxthor3 wrote: ↑ You want them to lower the price of the vehicle and toss in like 2-3k worth of extras? I have a feeling you're going to leave that dealer disappointed.

i dont know whether to laugh or cry

ausername wrote: ↑ i dont know whether to laugh or cry

It's a tough time to buy anything new or used. Used vehicle prices are insane. Goodluck!

ausername wrote: ↑ thank you, i read about that too, and to check carfax and independent inspection.
i would buy vehicle in cash

For used cars, they get financing kick backs, so if you finance, you can get extra off. If it’s cash, they get no bonus, and there is less wiggle room.

FilaGuy wrote: ↑ I've bought many used cars. Don't bother negotiating tires and extras that you would normally look at with a new car. Just better off getting the stuff you want elsewhere or even kijiji (winter tires, hitch, etc..).

Like others have said, used cars are selling well and especially a sought after rav-4. Good luck!

That's good advice. However, I assume (perhaps incorrectly) that a Toyota dealer will add a bit more markup than a no-name dealer, so there may be a bit more room for negotiation. At least that was my recent experience, but with a different brand.

Go for it. At worst they say no.

ausername wrote: ↑ thank you, i read about that too, and to check carfax and independent inspection.
i would buy vehicle in cash

Cash isn't king anymore honestly. They don't care how you pay anymore as long as you can pay (i.e. financing, cash, etc.). Big discounts are a thing of the past since all the information is on the internet and they price accordingly to reflect that. Usually you can get maybe $500 off if it's been on the lot a while and some oil changes. Best bet is to try and rope them into free service centre stuff as that's a big profit margin for them and they want to rope you into getting serviced at the dealer.

Good luck, you're gonna need it going for such a popular vehicle especially in these times of sky high used prices...

LoANeal wrote: ↑ Cash isn't king anymore honestly. They don't care how you pay anymore as long as you can pay (i.e. financing, cash, etc.). Big discounts are a thing of the past since all the information is on the internet and they price accordingly to reflect that. Usually you can get maybe $500 off if it's been on the lot a while and some oil changes. Best bet is to try and rope them into free service centre stuff as that's a big profit margin for them and they want to rope you into getting serviced at the dealer.

Good luck, you're gonna need it going for such a popular vehicle especially in these times of sky high used prices...

The last car I bought they wanted me to finance so hard because the bank gives them a kickback or credit for a referral to them for financing. I financed through the dealer to get $1000 off. I had the money, and the interest rate was higher than I could normally have available but I took the $1000 and then the $250 in service credit.

It was an open loan so I paid it off when I felt like it.

m4gician wrote: ↑ The last car I bought they wanted me to finance so hard because the bank gives them a kickback or credit for a referral to them for financing. I financed through the dealer to get $1000 off. I had the money, and the interest rate was higher than I could normally have available but I took the $1000 and then the $250 in service credit.

It was an open loan so I paid it off when I felt like it.

are most car financing programs "open", or are there penalties for paying it off early?

Any auto loan I’ve had has always been an open type. Not sure if that’s universal for all auto loans.

My dad just purchased an used car. It was a low demand vehicle and we did not negotiate a single dollar. Honestly not worth our time since the car was already priced very well compared to others.
If the Toyota Rav-4 you are looking at is not priced well compared to others they might drop a few hundred dollars. Your going to have to work for it.

Just like anything, thsi is about the market value, the less about the list price and discount level.

Let's say the car is valued at approximately $20K. The following 2 scenarios get you to the same outcome, but psycologically you might think one is a much better deal.

Dealer list it at $25K, and gives a huge discount and reduce it to $20K
Dealer list at $20, and no discount.

For certain brand that offer Certified Pre-Owned with warranty extension and low interest rates, it is may be worth it buy it from these dealers (i.e CPO Audi and Audi dealers) at the higher price for the CPO benefits.
For Toyota, there not be much different on where you purchase it from.

Last, check vehicle history as some good deals may not be so good in the end due to prior accident claims or other factors (i.e former rentals). Also monitor how long specific vehicle have been listed as dealer would be more willing to reduce the price if the unit is not selling.

Check the listing price with VMR and then compare your pricing how much you want to pay for it. It's that kind of market now.

The RAV4 (Corolla, Camry, Sienna) these models in the past 5-7 years I've notice a growth in it being Uber and rental cars. Do a through inspection especially if it was an uber car, on the carfax it won't say that. From my friend's experience although it may look new, it has been very worn out. I would check the rear seats and the scuffs by the door.

Just be ready to walk. Don't be desperate. If you are desperate, they are gonna nail you.