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New Car Purchase Strategies - How to Get a Good Deal

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Old 01-07-2018, 11:31 AM
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New Car Purchase Strategies - How to Get a Good Deal

Since I recently gave my girlfriend some advice when she bought a new Fit, I chimed in on a couple of recent "how much did you pay?" and "what's a good price?" threads: https://www.fitfreak.net/forums/3rd-...u-pay-otd.html) and https://www.fitfreak.net/forums/3rd-...sport-cvt.html

However, I've noticed that there doesn't seem to be any thread that is actually dedicated to new car purchase strategies. I've seen where some posters have shared their methods but they usually appear randomly or in threads that focus on how much someone paid for this model or that model, like the ones linked above. I'm not sure how useful this will be to most of the people on here since they've already bought a Fit. But, from time to time, there do seem to be some Fit shoppers on here too, so maybe at least a few people will find a thread like this useful.

So this thread is dedicated to buying strategies. Everybody has their own favorite methods so let's share them and help others save some money!

There will be a few comments here that were included in my previous posts but I'm hoping to shift the focus to a few specific strategies that I've found useful.

My girlfriend recently bought a 2018 Fit LX CVT. Even though she has great people skills, before she started, she was extremely intimidated by the prospect of negotiating with dealerships. Apparently, this is not uncommon. I saw a recent thread on here where the poster was not even aware that buyers could negotiate car prices and, even after learning it was common practice, they didn't make much of an effort to do so. They later acknowledged that they didn't get a very good deal.

One thing to keep in mind is that there are cars available from numerous dealerships and the pressure is on the dealer to earn your business. Obviously, there are exceptions. Some models might be produced in limited numbers or be in high demand when they first hit the market. There doesn't seem to be any shortage of Fits, however. Also, in most cases, the buyer is not under the gun to buy something immediately. If you decide to wait another month or more, it's OK. The dealer, on the other hand, is under pressure to move cars every day. So relax and use this to your advantage.

One of the keys to getting a good deal is to make sure you are in control of the conversation - and it's not really that difficult. When you first go to a local dealership tell them FIRMLY, up front, that you will NOT be buying a car that day. You're only there to look at different models and trims and take a test drive or two. You should, of course, let them know that you ARE a serious customer. Tell them you WILL be buying sometime soon but that, today, you're just checking out the cars. On this first visit, do not discuss anything relating to prices, what options you want, whether you plan on trading in a vehicle, amount of monthly payments or how you plan to pay. If they press you on these points just say you haven't decided, that you only want to figure out which model will meet your needs. Tell them you'll also be looking at other brands, even if you've already ruled them out. On our recent foray, my girlfriend drove the Fit and also a Civic.

The next day we went back to get an initial price quote. It's important to stress to the salesperson that, on this second visit, you just want a price quote. You will not be buying today, but you will within the next few days. Yes, you'll get the standard question of "What will it take to get you into this car today?" You should NEVER answer a question like that. It's the dealer's job to make you an offer, not the other way around. That's the key to this strategy.

I recall seeing a post where someone said they just make the salesman an offer while taking a test drive. If a salesperson readily accepts such an offer you can be 100% sure that you paid more than you could have. How much did you overpay? You'll never know. If you have money to burn, then OK, it simplifies the process. Most of us would rather save a bit - maybe quite a bit - especially if they plan on modding the car. It's also probably safe to assume that most Fit buyers are more budget conscious. After all, they are buying a Fit, not a Mercedes or a mammoth SUV.

Always tell the salesman that you don't want any of the dealer-installed options. These are almost pure profit for the dealership, their true value is probably 5-15% of what they charge. They will tell you that all dealerships add these items - which is not actually true. Let them know that, if they're already on the car, fine, but you won't pay anything for them. This applies to dealer-installed items only. Of course, if you want some other factory options let them know which ones.

Then, get your initial price quote. This comes from the Sales Manager, of course, not the salesperson. The key from this point forward is to totally ignore what they list as the cost of the car, the various fees like the Doc Fee, etc. The only thing that matters is the out-the-door (OTD) price. On their tally sheet, this will include the "price of the car", the destination fee, any options you want to add, the so-called Doc Fee, their fee to handle the transfer or purchase of the tag and title the car, the state's tag and title fee and the sales tax. They will want to go over this line by line. If you want to humor them, just listen passively, but don't ask any questions. Don't let the details of how they determine the OTD price distract you.

When you're trying to get a price on a new car, dealers always want to include trade-in and financing in the same conversation. Why? . . . Because it's confusing, which makes it easier for them to get you to pay more. You'll get a better deal if you separate car price, trade-in and financing into three different, and completely separate, conversations. If you allow the dealer to include all of these factors in a single negotiation you're just making it easier for them to bamboozle you. It's easy to overlook the bottom line if you're wowed by them offering you a high price for your trade-in that you know is worth much less. In the car price conversation, if you focus on the OTD price there won't be any surprises later.

So, when they try to discuss a trade-in or how you plan to pay, just refuse to discuss those topics. Tell them you're only getting price offers at this point. Let them know that you will be shopping around at other dealerships but that, if you get a better offer, you will let them know and "give them a chance to earn your business". Use that exact phrase. Tell them that IF you decide to purchase from them, THEN you'll discuss trades and financing, not before. At this point you just see what their offer is - you don't discuss any of the line by line details or try to negotiate a lower offer. Just get their offer in writing, thank them for their time, and leave.

So, we left with our initial OTD price quote, which was $19,474 for a 2018 LX CVT with no options.

The next step was to go to the Honda website and check the inventory of all the dealers within a roughly 100 mile radius to see which ones had that exact car listed as "in stock" or "in transit". We found 7 dealers had her color choice - silver. Obviously, if you live in a big city you will have more dealers nearby. I have 3 dealers within 50 miles of me and probably another dozen within 75 to 100 miles.

Then it's simple - you just start calling them. Even if you hope to buy close to home, call dealers further away. It will help you get a better price from your local dealer.

You could contact them via email instead but I prefer to call because it gives you a better sense of how straightforward they are and allows you to ask questions if something they say is confusing or strikes you as misleading.

Always ask to speak to the Sales Manager, not a regular salesperson. Tell them exactly what you want, in her case a 2018 Silver Fit LX CVT. Let them know that you won't pay for any dealer-installed options but, if it has them already, you'd like to know what they are so you can compare apples to apples. Do this even if some of these options appeal to you. Always say you don't want them. We found the list of dealer-installed options varied quite a bit and a couple of dealers said they sold the car just as it came off the trailer with no extras. If the car doesn't have them and you want some of them you can buy any of them from other sources for much less than what the dealer charges or try to get the dealer to add one or two of them free after you have your best quote.

She told them the price the local dealer had given us and asked if they could beat it. Be sure to be up-front with them - explain that you are calling several dealers and that if you get a lower offer you will call them back and give them a chance to beat it. The first dealer you call will give you a better price than the local guys. Then call the next dealer. If their price is higher, tell them the lowest price you have so far and ask them to beat it. Always ask them to beat it, not just meet it. Again, if they want to "earn your business" they need to make it worthwhile for you to travel to their dealership.

When they give you a price, always make them confirm that it is the OTD price and that no other charges will be added. The "Doc Fee" nonsense is a good example of why the OTD price is so important. It allows dealers to give a lower price quote and then, later, when the paperwork is drawn up, they add in the Doc Fee. If the price you were quoted was only what they list as the "price of the car" instead of the OTD price, you're in for a surprise. The dealer just claims that it must be added to every sale. They will also list a separate fee for having them deal with the tag office and, perhaps, even some other fees. In reality, the "Doc Fee" and all other dealer fees are really just part of the price of the car. If you focus on the OTD price, it doesn't matter how much the Doc fee is. If you're paying $20,000 OTD, the car could be listed at $19,000 and the Doc fee at $1000 or they could list the car price as $10,000 and $10,000 for the Doc fee - who cares? The bottom line, OTD price, is all that matters.

During your phone conversation, Sales Managers will try to start talking about the price of the car itself (without the fees), discounts, free oil changes, etc. Don't listen to their spiel, stop them immediately and tell them that the only figure you want is the OTD price. Tell them you don't care about how they come up with that figure. This throws them off their game.

As you continue making calls, the offers will continue to drop. Sometimes just a bit lower than your last best offer but sometimes by a more substantial amount. After a few quotes of $19,000, she got an offer of $18,775. We knew we were making progress.

Mostly, the people we spoke with were pretty straightforward but we did get one guy who was hard to pin down. He claimed to be really busy and wouldn't talk at any length. In one call he quoted her $19,000 but said he could do better if she came in. She told him we were 100 miles away so she needed a price over the phone and that she had a quote for $18,775. Before he had to hang up he said that he could get "close to $18,000". We spoke with him again later and he said "If I could give it to you for $18,300 would you send a deposit?" When she asked if that was his offer he just kept talking about how he needed her to send a deposit. When she didn't immediately agree, he had to go again. She left a message to clarify that IF she decided to buy from him she understood that a deposit was required but that she would not put down a deposit without a firm offer. Was he, in fact, making a firm offer of $18,300, because "what if" seemed pretty vague. We waited, left another message for him and waited some more. If the price he had dangled in front of her hadn't been so much lower than the previous best offer, she probably would have crossed that dealer off her list. Finally, she called back and asked to speak to a different Sales Manager, who gave her a firm OTD price of $18,400 with no runaround. So, if you get a flaky Sales Manager, don't be afraid to ask for someone else.

Here's the thing, if one dealer can go that low, others can too. That doesn't mean they will, but they can.

When she called other dealers, including those she had called earlier, and mentioned the new low offer a few of them said they wouldn't go that low. All the others said they couldn't beat that price but that they would match it. Before they agreed to match it, a couple of the Sales Managers said they would have to take that price to the General Manager and would call us back. Definitely a good sign. In the end 4 dealers told her they would offer an OTD of $18,400. At that point we called the local dealer back, who had offered $19,474. We were hoping he could either match it or get close enough to justify not driving anywhere. No luck, they would only come down to $19,124.

Now we were pretty satisfied with the price, which was $1074 less than the original local offer. So she went with the closest of the dealers who offered $18,400 OTD. They're about 45 minutes away from where she lives.

Could she have tried to finagle a little more off? Yes, and here's how. The local dealer had admitted that, when a buyer finances through Honda, the dealer gets $200 or so. I figure if he admitted to getting $200 it was probably more like $300-400. So it might be possible to get another $100 or so off the OTD if you offer to finance through them. Normally, I'd expect to get a better finance deal elsewhere though, so it might not be worth it. Still, after you've gotten your best offer(s) you could ask if they could give you a better deal if you financed through them.

After you've signed the sales agreement, the salesperson will walk you over to the dealer's finance office. At this point, you're relieved, you made your deal and got a good price. Your guard is down. Danger . . . because the finance person is also a salesperson who will try to push numerous other high profit items your way - paint sealant, fabric protector, etc. Again, these can be had at a fraction of what the dealer charges. They also will push various extended warranties. Don't feel pressured. These can always be purchased later if you choose. The dealer where she purchased her Fit offers a lifetime powertrain warranty to the original owner as part of the purchase price. Another dealer we spoke with also did this. How well they honor it remains to be seen. We both keep cars a long time, so she may find out. Her previous car, a 17 year old Camry, had over 190,000 miles on it.

And, again, if you're considering a trade-in, negotiate that only after you have gotten your best OTD prices on the car itself. I've always sold my old car locally to a private buyer so I have no direct experience here.

Yeah, this process takes a bit of time. Including her actual time on the phone and the time it took to drive up to get the car, it was probably about 4 hours or so. So she saved about $250 for each hour. Every time I've used this strategy I've saved at least $1000 over what I would have paid by just walking into my local dealer and purchasing a car. Once I had to drive down to the Orlando area which is about 100 miles but mostly I've found the best deal about 35 miles away. I've described this process to a couple of people who say it's not worth it to drive 100 miles to buy a car. But when I ask them, "If you got a call from someone 100 miles away who said they would give you $1000 cash if you would come pick it up, would you do it?" Of course, they all say they would.

Other strategies might work just as well or maybe even better but this has consistently worked for me. The actual deal you get may vary a bit from the deals others have gotten. The goal is to get the best possible deal in your area at the time you're ready to buy.

I've seen several recommendations on here for using the TrueCar service, which I had never heard of before - probably because my last new car purchase was my 2008 Civic Coupe almost 10 years ago. Here's a link: https://www.truecar.com/#/

One thing to keep in mind if you go that route is that the dealer has to pay TrueCar for sending a customer their way. It seems the cost to the dealership is around $300. So, if you can negotiate on your own, there's potential savings to be had right there. And since TrueCar sends your personal info to the various dealers, don't be surprised if you get spammed later, either by the dealers themselves or someone who they sold your info to. So there are potential downsides to be aware of. Other groups, like Consumer Reports, AAA and AARP, have contracts with TrueCar to provide the same service under their names.

Apparently, TrueCar used to list the Dealer Cost on their site but they removed that info after being pressured by dealers. Here's a site that lists that info - scroll down and make sure you're looking at the correct year, trim level and transmission type: https://www.car-buying-strategies.co...ices.html#2018

When you look at a sites like this you have to figure out what their price includes and what it leaves out. In the case of TrueCar, the prices listed only include the cost of the car including factory options and the destination fee. The Doc fee and any other fees, tag, title and taxes are not included. Looking at their site they claim the average TrueCar deal for the 2018 Fit LX CVT is $17,072. When you figure it that way, in order to compare apples to apples, she paid $16,308. That's $764 less than the average TrueCar price. According to the National chart on their website, anything less than $16,446 is "exceptional" and only 5 buyers out of 66 paid $16,362 or less. So it looks like she did pretty well.

Of course, I made her do all the calling and talking herself, I just explained the strategy to her. In the end she was very happy and I think she felt empowered by her successful negotiation. Actually there's not much actual negotiating to do and it's kind of fun to watch the various dealerships competing to "earn your business". Dealing with salespeople over the phone is a lot easier than it is in person, on their turf. It allows you to control the conversation more easily. We actually had a few laughs listening to some of their totally predictable BS before she redirected the conversation back to the all-important OTD price.

Again, I don't claim to be an expert but this has worked for me in the past and seems to have worked well for my girlfriend. I'm sure others on here have some good suggestions, too. Let's hear them!
 
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Old 01-07-2018, 12:22 PM
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Excellent Post!
 
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Old 01-07-2018, 02:32 PM
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Very nice write up, I agree with a large portion of this. To me the most important thing is deciding what you want. Which trim, and which options, if you can't find that car decide what it is worth to do without or to get more than you want. If you don't have that, an apples to apples comparison becomes difficult as the OP suggests.

On a different note, it becomes a time vs benefit CBA. If you are short on money and have time it is totally worth jumping through the hoops. If not, I'm ok with getting a good price. Part of this comes after listening to a This American Life episode about working at a dealership. A too long didn't listen summary is, it sucks. I'm sure less of a percentage than should goes to the work force, but if I pay a few bucks more I'm hopeful even a little more helps out the employees. I wonder when/if the entire dealership thing will go away. It is a terrible experience for the buyer. I dread going through it, which for me is about every ten years.
 
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Old 01-07-2018, 05:10 PM
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Originally Posted by 52club
Very nice write up, I agree with a large portion of this. To me the most important thing is deciding what you want. Which trim, and which options, if you can't find that car decide what it is worth to do without or to get more than you want. If you don't have that, an apples to apples comparison becomes difficult as the OP suggests.

On a different note, it becomes a time vs benefit CBA. If you are short on money and have time it is totally worth jumping through the hoops. If not, I'm ok with getting a good price. Part of this comes after listening to a This American Life episode about working at a dealership. A too long didn't listen summary is, it sucks. I'm sure less of a percentage than should goes to the work force, but if I pay a few bucks more I'm hopeful even a little more helps out the employees. I wonder when/if the entire dealership thing will go away. It is a terrible experience for the buyer. I dread going through it, which for me is about every ten years.
Yeah, I understand the time vs money thing. Just one of those trade-offs that each person has to decide for themselves which course of action is best. But I figure you'd really have to be in some kind of emergency situation if you couldn't spend a few hours making some calls in order to save that amount of money. Or maybe if someone makes more than $250 an hour and they would lose money if they had to give up those work hours. I'm guessing that most of us don't have that problem.

Thanks for mentioning the show about car dealerships that aired on This American Life. I found it on YouTube:

It's fantastic - highly recommended!! It is a truly crazy business and the pressure is intense. That's why I tried to make the point that the dealer is under more pressure to sell you a car than you are under to buy one. It also shows why the end of the month or the end of a quarter is usually the best time to shop, which I failed to mention earlier.

I hope that the salesperson makes a living too but, if they don't, I think it has more to do with how the car business is structured than whether or not I pay more for a car. It does offer a lot of insight into the somewhat hidden ways that dealerships make money and explains how they can sell cars at a loss but still make money - if they sell enough cars, the monthly bonus from the manufacturer more than makes up for it. It may not be a high profit margin business - typically 3% according to the show - but that's 3 times the profit margin of a well-run grocery store chain. I don't see too many dealerships going out of business and a lot of salespeople have been doing it for years, so it must be rewarding enough. I also wonder if the 3% refers to the sales end only. Most dealerships make a lot more on their service operations than they do on sales. Even if it's the overall figure, it's 3% of a very big pie. For the salespeople it is really intense, like any commission based sales job. Not a job I would want. It is a long show but everyone should check it out.

One of the salesmen, talking to one of the reporters says: "The thing you need to be paying attention to is the negotiation. The salesman is the tiger and the customer is the deer. The tiger has to eat and you can't eat if you don't kill that deer. You have to go for the neck, but if you try to kill him too early, the deer will wake up and run away."

The same salesman's favorite book is the ancient Chinese classic, "The Art of War". One bit of advice quoted from the book is: "Draw them in with the prospect of gain, take them by confusion." That pretty much sums up why salespeople always want to negotiate the new car price, the value of a trade-in, and the finance arrangements in a single conversation. And why you should focus on the OTD price and ignore all the other elements, which are designed to confuse you. It's a bit of a chess match. Doing it over the phone, as I suggested, makes it much less intense on the customer's side of the board.

Here's a transcript of the show if you'd rather read it. Great stuff!
https://www.thisamericanlife.org/rad...513/transcript
 

Last edited by FlaCharlie; 01-07-2018 at 05:19 PM.
  #5  
Old 01-08-2018, 06:02 PM
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Originally Posted by FlaCharlie
Since I recently gave my girlfriend some advice when she bought a new Fit, I chimed in on a couple of recent "how much did you pay?" and "what's a good price?" threads: ....................


OMG....I'm not going to read your manifesto on how to buy a car. It's simple. Get a price off True Car on similar website. Go to five dealers and tell them you want their best price and let them know you're shopping at five dealers and who ever gives you the best OTD price you will buy from. Tell them you won't let them match or beat. Tell them to sharpen their pencil and give you the best price. Get the five prices, compare to True Car and go buy from the cheapest.

Regardless what you're probably missing is dealers now check their competitors internet prices and usually price accordingly. Almost like a legal price fixing. So unless you're willing to drive a distance, most will be priced similar to their local competitors. Doesn't make a difference what someone else paid in a different part of the state or country, it's what your local dealer will sell or how far you're willing to drive to buy at that price. I drive 1-1/2 hours to save $400 from the four dealers that were within 40 minutes of my house. Who coincidently all quoted the same price.


Lastly, throw everything out the window if you have a trade in. Then the dealer just plays with numbers to make the sale. You want top dollar for your trade, then less off sticker. You want a bunch off sticker, then the give you little for trade. See it all the time on the Subaru forums. I paid $1K under invoice, but they received $3K for a $5K trade in. At least they can brag on the forums and leave off pertinent info LOL
 

Last edited by Rob H; 01-08-2018 at 06:12 PM.
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Old 01-08-2018, 08:17 PM
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Originally Posted by Rob H
OMG....I'm not going to read your manifesto on how to buy a car. It's simple. Get a price off True Car on similar website. Go to five dealers and tell them you want their best price and let them know you're shopping at five dealers and who ever gives you the best OTD price you will buy from. Tell them you won't let them match or beat. Tell them to sharpen their pencil and give you the best price. Get the five prices, compare to True Car and go buy from the cheapest.

Regardless what you're probably missing is dealers now check their competitors internet prices and usually price accordingly. Almost like a legal price fixing. So unless you're willing to drive a distance, most will be priced similar to their local competitors. Doesn't make a difference what someone else paid in a different part of the state or country, it's what your local dealer will sell or how far you're willing to drive to buy at that price. I drive 1-1/2 hours to save $400 from the four dealers that were within 40 minutes of my house. Who coincidently all quoted the same price.


Lastly, throw everything out the window if you have a trade in. Then the dealer just plays with numbers to make the sale. You want top dollar for your trade, then less off sticker. You want a bunch off sticker, then the give you little for trade. See it all the time on the Subaru forums. I paid $1K under invoice, but they received $3K for a $5K trade in. At least they can brag on the forums and leave off pertinent info LOL
Your strategy is really not that different from mine except that I'm willing to give a dealer a second chance to earn my business. On this recent purchase, that second round of calls yielded an additional $375 reduction in the price and took far less time than the first round. It also allowed her to purchase from a dealer that was much closer to her - 45 minutes away instead of 1 1/2 hours, each way.

The information available online is very valuable, like the ability to check dealer inventories. Being able to find out the dealer cost is helpful too, even if it doesn't tell the whole story. And, as you point out, TrueCar is an excellent resource, even if you don't buy the car through them.

Were you able to get a better deal than the average listed on TrueCar? I'm also curious if you mentioned TrueCar to the dealers you contacted. She did not but it occurs to me that it might have saved some time. Even so, she was able to save $764 over their average.

You also make an excellent point about how dealers try to confuse buyers who have a trade in. It's really important to focus on the OTD price, whether that involves a trade or not. By first getting an OTD offer on the new car price, without the trade, it's easier to determine whether it's in your best interest to trade or try to sell the old car privately.
 
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Old 01-08-2018, 09:47 PM
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Excellent post! I was able to get my '18 FIT EX-L for $19,500 (+ $80 doc fee, +CA dmv license/reg fees which are mandatory, +tax, minus another $500 for military veteran via Honda finance). I live in Nor CA which is a benefit since there are over 15 dealers within a 100 mile radius. Here is my method which is similar to yours though I prefer using strictly e-mail to have a written document which you can show them as proof of the offer when you show up:

1) use the Honda.com website to determine which dealerships have your exact model & color ON THE LOT. In my case 11 dealers had an '18 EX-L in modern steel within 100 miles of me.

2) via the Honda.com website, email each of the dealers that has your car on the lot with a similar message-simply copy and paste to all of them. "Within 24 hours I will purchase an '18 (your model and color here) from the dealer that gives me their best offer that is closest to me. I am sending this message to (here list every Honda dealer that has the car on the lot-the more the better)." If you are flexible on timing, the last few days of the month and quarter are best since they are motivated to meet sales goals during these times. Be honest and do follow through if you are ready to purchase. If you are asking for a rare color, transmission, option combo then be prepared to pay more.

3) within hours you will receive multiple offers via e-mail. Do not respond to them until about 8-12 hours later to allow most to respond and to get a sense of how low they are willing to go. Some will not, and they may not want or need your business since they may have already sold 50 cars that day. I then asked my local Honda to match the lowest offer. In this case they could not come within $800 of the lowest offer so I ended up driving 80 miles to get the car. If your time is worth more than the potential saving by driving the extra miles then this method will not work for you.
 
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Old 01-09-2018, 08:49 AM
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I know it's has yet to be very successful.
Saturn...now defunct..tried a 1 price, no negotiations selling strategy. What the sticker said, was what the vehicle sold for..period.

I've always been surprised that with what for many people is the biggest or second biggest purchase they make, we still have a "Camel Trader" approach to the sell.

I think things are changing with internet buying services and tools. You can now buy a car, without the age old, deal with the dealership approach.

My only advice in todays age, is there is really no excuse for not knowing exactly what you want, and also not knowing the going price for that same vehicle in your area. With the internet, nobody should walk onto a lot without that minimum information.

I would always gain that information, then if you are too intimidated to deal with a dealership, I would look into employing a buying service.
 
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Old 01-09-2018, 07:57 PM
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Originally Posted by fitchet
I know it's has yet to be very successful.
Saturn...now defunct..tried a 1 price, no negotiations selling strategy. What the sticker said, was what the vehicle sold for..period.

I've always been surprised that with what for many people is the biggest or second biggest purchase they make, we still have a "Camel Trader" approach to the sell.

I think things are changing with internet buying services and tools. You can now buy a car, without the age old, deal with the dealership approach.

My only advice in todays age, is there is really no excuse for not knowing exactly what you want, and also not knowing the going price for that same vehicle in your area. With the internet, nobody should walk onto a lot without that minimum information.

I would always gain that information, then if you are too intimidated to deal with a dealership, I would look into employing a buying service.
I had forgotten about Saturn's no negotiation policy. Probably not a factor in their demise, though. Some dealers do, in fact, advertise "no haggle" pricing. It's a great PR gimmick to put customers at ease. Sheep are more easily shorn when they're at ease. I believe the only difference between these dealers and Saturn is that Saturn made all their dealers operate this way.

I'm sure any dealer would be more than happy if you just walked in and agreed to pay sticker without negotiating, unless it's a car that's in short supply.

It seems to me that the size of the purchase is exactly why there is a "Camel Trader" approach. The other and even larger purchase, homes and real estate, is also known for negotiation. The more money there is at stake, the more motivation there is to negotiate.

The internet has revolutionized the whole process, to the advantage of the customer. I think they mention in the story linked above that average profit per car is quite a bit less now because of the internet. No matter how you accomplish it - whether using the phone, email or, to a lesser extent, using a buying service - I think you'll get a better deal if you avoid the salesperson's turf as much as possible. If you negotiate in the traditional way, at the dealership, they definitely have a huge home field advantage.
 
  #10  
Old 01-09-2018, 09:33 PM
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First post too long didn't read......

Build the car you want online and print it..

Take it to nearest dealer and ask how much you can buy one for and when they can have it with exactly what you want. (I wanted windows tinted and some dealer installed options)

Then ask how much for your trade in and what OTD price will be.

Negotiate anything that seems unreasonable and try to get free oil changes and inspections.

Tell them you will be back in a day or two to make a decision
.................................................. ...........................................

When you decide to make a deal with a deposit... be sure to do it so pick up date is at the end of the month. You will get the best price then..

Enjoy your new FIT
 
  #11  
Old 01-10-2018, 10:33 PM
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Originally Posted by SHAG
First post too long didn't read......

Build the car you want online and print it..

Take it to nearest dealer and ask how much you can buy one for and when they can have it with exactly what you want. (I wanted windows tinted and some dealer installed options)

Then ask how much for your trade in and what OTD price will be.

Negotiate anything that seems unreasonable and try to get free oil changes and inspections.

Tell them you will be back in a day or two to make a decision
.................................................. ...........................................

When you decide to make a deal with a deposit... be sure to do it so pick up date is at the end of the month. You will get the best price then..

Enjoy your new FIT
That's the same process my girlfriend followed at the first dealer we talked to.

If she had accepted that deal she would have paid $1074 more than she did!

My original post is pretty long-winded. It's mostly aimed at people who are currently in the market for a new car. I can understand that some people might be too busy to read it all - or just not interested if they're not currently in buying mode. Or maybe they (not necessarily you) just have short attention spans. There seems to be a lot of that going around these days with all the distracted drivers and such. A key market demographic for Honda Sensing, I imagine.

Some of those same people may feel that it's not worth their time to try to get the best deal possible. Just make an offer and, if they accept it, sign the papers.

It did take a little more time for her to get the better deal. For anyone who didn't read the post, I'll summarize . . .

She saved about $250 for each hour. For her, it was time well spent. The TrueCar stats are constantly changing as more deals are added to their database. According to their latest stats, out of 104 people, nationwide, who bought the exact same car (Fit LX CVT, no options) only 10 paid the same amount, or less, than she did.

Buying near the end of the month is always a good strategy. She bought her Fit a few days before Christmas so she might have gotten a slightly better deal if she had waited another week or so.
 

Last edited by FlaCharlie; 01-10-2018 at 10:36 PM.
  #12  
Old 01-11-2018, 12:09 AM
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I think back to when I was a little kid, and the few times my parents went looking for a new car. This was mid to late 70's.
It was a totally different ball game. You didn't have the tools for information about vehicles that exist today.
I remember, my parents, would literally ask other family members, neighbors, strangers in parking lots, for impressions and opinions about a vehicle they were interested in. You might ask co-workers for opinions, but there was no internet, with forums, no Honda, Toyota or other automotive maker specific websites.
And trying to get a buying cost, and you often were really at the mercy of the dealerships. You could look in the newspaper at ads, but once you walked on the lot, you pretty much were at the mercy of what you were told, not what you might know.

It's a lot better today. The open available information about just about any and every car made and sold is amazing.
Websites like this one? Most every model and make has some type of forum, which can allow you to quickly get feedback and real life ownership impressions both positive and negative.
I can see where trying to know what was available, possible, and at what cost, for my parents buying a vehicle was probably much more challenging than today.
Today, if you don't know what you want, and how much it should cost before you walk on a dealership lot...that's pretty much just laziness.
And buying services and internet sales even allow you to bypass the direct dealership experience if you want.

It still takes some effort to get the information, and perhaps some stamina in dealing with a dealership.
But today, you can easily walk on to a lot with MORE information about the product than the salesperson themselves. I know I've had to explain to sales people more than once how something worked or that yes, indeed a specific option was available.
And that is nice.
 
  #13  
Old 01-23-2018, 08:44 AM
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I had to purchase several new vehicles over the past 5 years and dealing with the dealerships is almost as bad as dealing with insurance companies. When I bough my families Honda Fit (2015 EX manual) I went through Costco. It seems really really weird but it works. All conversations were over the phone/ email which makes it easier to turn down any sales stuff ( there was one offer of accessories/ service/ ect) . I ended up going out of town to get the car but not having to deal with my local dealers BS was a great experience. I had my own financing (local credit union) and paid 18,250 OTD which at the time was less than every other dealerships starting price.
 
  #14  
Old 01-23-2018, 08:55 PM
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Has anyone ever felt sorry for the dealer with the deal they got on their Fit?

Print? Capture all the information in your phone or tablet.
 
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