$1000 Under MSRP

S

SevenMaryThree

New member
First post, be gentle.

I'm going to trade my Tundra in for an '11 Limited. The dealership gave me a great price on my trade in. There is exactly one truck in this region's inventory that fits my bill.

The truck I want is scheduled to arrive at a dealership in the next state over in about a week. My dealership called the trade manager and had to barter away a high end Sequoia to get the truck. I guess this particular Sequoia is even harder to get than the 4 Runners.

Because of this, the dealership has quoted me a price that is $1000 under MSRP. I understand supply and demand (kind of) and know that car salesmen have mortgages too.

Please tell me I'm not nuts. This is the 'worst' car deal I've ever made.
 
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SevenMaryThree said:
First post, be gentle.

I'm going to trade my Tundra in for an '11 Limited. The dealership gave me a great price on my trade in. There is exactly one truck in this region's inventory that fits my bill.

The truck I want is scheduled to arrive at a dealership in the next state over in about a week. My dealership called the trade manager and had to barter away a high end Sequoia to get the truck. I guess this particular Sequoia is even harder to get than the 4 Runners.

Because of this, the dealership has quoted me a price that is $1000 under MSRP. I understand supply and demand (kind of) and know that car salesmen have mortgages too.

Please tell me I'm not nuts. This is the 'worst' car deal I've ever made.
Click to expand...
Check out cars.overstock.com (don't type "www"). You can get a '11 4Runner at invoice, atleast in my region. I'm pretty sure you can too. $1,000 below MSRP, to me, is a rip off. Just technique only here but I would never talk about my trade-in until I have negotiated a firm price of the purchase.
There are a few posts regarding "negotiation tactics". You can search it on this forum. My suggestion would be to sell your truck on your own. If not, atleast take it to a Carmax and get a quote for your truck. There's is no obligation to sell them your truck and the offer is good for 7 days. That way, you have some "trade-in power", if you get my drift.
Just my 2 cents.
 
SevenMaryThree said:
First post, be gentle.

I'm going to trade my Tundra in for an '11 Limited. The dealership gave me a great price on my trade in. There is exactly one truck in this region's inventory that fits my bill.

The truck I want is scheduled to arrive at a dealership in the next state over in about a week. My dealership called the trade manager and had to barter away a high end Sequoia to get the truck. I guess this particular Sequoia is even harder to get than the 4 Runners.

Because of this, the dealership has quoted me a price that is $1000 under MSRP. I understand supply and demand (kind of) and know that car salesmen have mortgages too.

Please tell me I'm not nuts. This is the 'worst' car deal I've ever made.
Click to expand...


Best advice when buying a car, is to never rush. If a dealer knows you want a car now, they won't bulge...

Post you tundra on craigslist and autotrader and see if you can get more than the trade in. While you are waiting for a sale to go through... keep an eye out on the inventory at all the Toyota Dealers nearby. You should request online quotes from sites such as edmunds and autotrader so that every dealer will contact you with prices on your specific options. Turn all their offers down for a few weeks and eventually one will come back with a great deal. $1000 below MSRP just seems like a lot to pay.
 
I'm working on finding my first 4Runner. Local dealer (Houston area) is offering $200 over invoice. I also emailed a dealer in Tenn. Their first offer, by email (without even talking to anyone on the phone), is 2% over invoice. $1000 under MSRP seems a little high.

Glenn
 
I worked with a fleet manager at a dealership in Houston on my 2010 SR5, and ended up with a price that was 7% below the MSRP. That was before we talked about trade-in and financing.
 
Another tactic that the Sales Manager will use is making you feel bad for the Sales Consultant who showed you the car(s). It was a weak spot for me when we bought my wife's Rav back in March during the 0% APR promo, and I paid about $500 more (total of $1000 over invoice (in Northern NJ)) than I had to because the manager made it sound like the sales consultant only makes money with a slight percentage of dealer profit above the invoice. Grand scheme of things, it wasn't a bad purchasing experience at all, but its probably $500 I could have saved to make it a standard $500 over invoice deal.
 
SevenMaryThree said:
First post, be gentle.

I'm going to trade my Tundra in for an '11 Limited. The dealership gave me a great price on my trade in. There is exactly one truck in this region's inventory that fits my bill.

The truck I want is scheduled to arrive at a dealership in the next state over in about a week. My dealership called the trade manager and had to barter away a high end Sequoia to get the truck. I guess this particular Sequoia is even harder to get than the 4 Runners.

Because of this, the dealership has quoted me a price that is $1000 under MSRP. I understand supply and demand (kind of) and know that car salesmen have mortgages too.

Please tell me I'm not nuts. This is the 'worst' car deal I've ever made.
Click to expand...
sounds like a crap deal to me. i paid about $4k under msrp (no trade-in) for my Trail in march when new 4runners were even fewer and farther between...
 
Agree with all said so far. Don't trade a good vehicle if there is any way to avoid it. They will make $2k when they sell your truck, guess where that came from?

Besides, it gives them something to muddy up your deal with.

$1k under MSRP??? Horse Pucky! It should be at least 10%, at least.

As said earlier, being excited and in a rush in not in your best interest. As to the Sequoia, under no circumstances should this have anything to do with you, and your deal. If they want your sale, they'll have to do what it takes.

Regretfully, seems they know you are eager..... but, at the end of the day it's your money.
 
SevenMaryThree said:
First post, be gentle.

I'm going to trade my Tundra in for an '11 Limited. The dealership gave me a great price on my trade in. There is exactly one truck in this region's inventory that fits my bill.

The truck I want is scheduled to arrive at a dealership in the next state over in about a week. My dealership called the trade manager and had to barter away a high end Sequoia to get the truck. I guess this particular Sequoia is even harder to get than the 4 Runners.

Because of this, the dealership has quoted me a price that is $1000 under MSRP. I understand supply and demand (kind of) and know that car salesmen have mortgages too.

Please tell me I'm not nuts. This is the 'worst' car deal I've ever made.
Click to expand...

Take a look at the CARMAX web site for some more pricing ideas before you buy anything. Also, check KBB and/or Edmunds to see what your trade in should be worth and what you can get for it via private sale.

BTW...I like working with the sales manager directly because he'll have the final say regarding any deal, he can give the final sale to whomever he wants in the showroom as long as I have an agreed to price with him.

Mike :artist:
 
Also, check Edmunds.com. It will show the True Market Value ("TMV") of the vehicle and options.

I just got a quote from another out of state dealer on the exact 4R I want - $1000 over invoice plus $400 dealer handling fee. This price is about $2K below MSRP.

Patience you must have, young Skywalker.
 
MikesToy said:
My rule of thumb is: Dealer's sticker price minus $7k and negotiate from there.
Click to expand...

I don't recommend this tactic. There is no reasoning behind it, and many won't take you seriously. Go to Edmunds.com and find out your invoice, or ask the dealer for the invoice on the vehicle. Pay what you think is a fair deal above invoice. Demand and availability play a large roll in this. If you are flexible with color and options, you have more bargaining power. If you aren't and can't wait, then you might need to pay a little more. I would offer them $500 over invoice. If they have to trade, find out where the vehicle is coming from, and how much they are estimating to get the vehicle you want to their dealership. If it costs them $250, then tell them you will pay the difference making the deal $750 over invoice.

Despite what many say, it doesn't matter if you bring up your trade before or after. What is more important is to know what the money is on your car. Most people think their car is worth more than it really is. As recommended above, get a number from Carmax and kbb. Regardless of condition, put fair condition and do not add for miles. The dealer will most likely lowball you on your trade, but stick to your guns. If they can't give you fair value for your trade, then make them work for the deal. Tell them to call around for a buy bid on your car. If you have to walk, then do.
 
Take advantage of USAA, CostCo and other buying services if available to you. Many of my friends swear by Costco and I used USAA to get a 2011 TE $1050 under invoice. The fair deals are out there, I'd keep looking..
 
shop around. i always assume 4k less than msrp. a dealer who wants to make a sale will do it. the msrp on my 4r was 37k, offered 33k and they worked it out. other dealers were not willing to do it. car is only worth what someone is willing to pay for it.

just walk in an tell them what you want to pay (assuming its reasonable). tell them u will sign if they do it. once they do say thanks i will be back tomorrow and walk away. go to another dealership, tell them what you have worked out and see if they will beat it. if not go pick up your new 4r.
 
MikesToy said:
Worked for me. :jump: I paid $32K for my '03 Limited 7 1/2 yrs ago. It took a half day to negotiate tho and another half day to sign all the papers. I felt like buying a house.
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I think if you negotiated reasonably below invoice as the starting point, you likely would have been in and out within two hours.
 
Glenn_Law said:
Also, check Edmunds.com. It will show the True Market Value ("TMV") of the vehicle and options.

I just got a quote from another out of state dealer on the exact 4R I want - $1000 over invoice plus $400 dealer handling fee. This price is about $2K below MSRP.

Patience you must have, young Skywalker.
Click to expand...

In my experience, Edmunds has always been $1000 to $3000 higher than what I paid. Usually closer to the latter.

Heck, even Edmunds just went under cover and beat their own TMV by $1000. Video on Inside Line.
 
TTown said:
Despite what many say, it doesn't matter if you bring up your trade before or after.
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I wholeheartedly disagree. Dealers will play games and there is now way to really know what you paid for your new vehicle. Always say no trade in. Then after deal on new car is struck, tell them you changed your mind. This way you know what the new car costs and what you are getting for your trade.
 
Offer dealers $1K below invoice and negotiate from there. I am seeing $1K below invoice in L.A. but your area is likely very different. Just make sure not to be hoodwinked by bogus charges and fees and don't buy anything in the finance office.
 
Internet department, email your deal.

By the time you hit the dealer it is only to wire transfer the funds and collect the vehicle.

I have better things to do with my time then spend more than a hour at a dealership.

When you negotiate at the dealer you are on their turf. This is purchasing 101.
 
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