$1000 Under MSRP

[TTown]

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.

Dealers will play games and there is now way to really know what you paid for your new vehicle.

That is why you need to do your homework. Know what the true trade-in value of your car is. If you are close and the dealer knows you have a trade, especially if it is something they know they can sell, use that to leverage your number. The dealer on average will make $2500 on your car. If they are holding on a couple of hundred dollars and you point this out to the sales manager and are willing to walk, you won't have to wait long before they ask you to come back and do the deal.

It is their job to get as much money for each car on the lot as they can. Their comp is tied directly to this objective. People who know the business and don't try to rip them off can get a good fair deal. It's the ones that don't know what they are doing, usually with bad credit and are emotionally tied to the vehicle that the dealers make a lot of money on.

 

[atomicbob]

Affinity Pricing

You also might want to check with your auto insurance, credit card, credit unions, etc. to see if any belong to an affinity buying program such as Zag.

I was checking what my new insurance rates would be IF I picked up a new T4R and noticed a link to a "car buying service." I filled out the form... gaurenteed pricing of $600 below invoice... I had 5 dealer's calling me within 30 minutes. I started the negotiation at $600 below invoice and went down from there.

I picked up a [what I think is a] sweet deal... MSRP of $38,947, Invoice of $35,014.... My Price... $34,014.

Negotiations totaled 2 Hours... 20 Minutes configuring what I wanted on the web. 20 Mintues with each of 5 Dealers (on the phone). Deal Done over the phone... getting papers signed, after agreement sales pitches... different story.

 

[B'klyn_Mike]

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.

This worked perfectly for my daughter and son-in-law when they bought their Camry in '08!

Mike :artist:

 

[Will733]

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.

Agree 100%... to say that it doesn't matter when you through something of value into the equation is ridiculous.

I went truck shoping with a buddy of mine this year who ended up getting a 2010 Tacoma. He had already reached a deal online for a great price before he ever went in. Once we were there, he said he wouldn't take less than $x for his Subaru WRX and they said ok, fair deal... but then wouldn't budge to anywhere near the price he was originally quoted earlier. Fortunately for him, he had saved the email quote and ended up with a killer deal on both the trade in and the new Tacoma by doing this. So if you must trade in your vehicle, that's the only way to do it and not get burned...