When you buy a new car, do you walk in the dealership?

[LSUMBA]

Do you call around beforehand? I am looking at purchasing a new '06 T4R Limited V8 4WD. I have priced it out & I know exactly the price that I am willing to pay. My price is fair & above invoice enough to allow the dealer to clear more than $1000 when you include the factory holdback. I am also not at all adverse to special ordering & waiting for the perfect truck.

I am thinking about using the strategy of simply sending an e-mail out to all the dealers in the Atlanta area with my price, options, etc., and asking anyone willing to meet my offer to call me to set up an appointment. Basically, hoping to avoid the whole runaround (or as much as possible) at the dealership.

Anyone here ever used this tactic before? Any advice?

 

[Good Times]

email each internet sales department at each dealership (I did the CC thing so each recipient knew who I was contacting).

Sent the same email w/ the information on exactly what I was looking for. Contact name and number was also included so they could get a hold of me.

First to bid the lowest got my deal

Internet sales is the way to go as it's no hassle purchasing!

 

[iamtwonice]

Check out the thread*

Has anyone used this approach

All your questions will be answered, and if you want the dealer to make that much money why not just open your wallet for them and say take as much as you want.l

 

[LSUMBA]

Check out the thread*

Has anyone used this approach

All your questions will be answered, and if you want the dealer to make that much money why not just open your wallet for them and say take as much as you want.l

Well, considering that the holdback is $866.26 on the particular vehicle I want, I am really giving them less than $140...or are you proposing that I dip into their holdback as well?

 

[00328]

Once you know exactly what you want, it's the only way to go!
Don't even include what you are willing to spend, let them come up with some figures. You may be pleasently surprised.
Follow up with each dealer prices you have received.

 

[4RunnerRon]

How to purchase new 4Runner

In my experiences with buying new cars, I think the best approach is to contact the internet sales managers via email and lay down the basic info. Tell them exactly what you want (no compromises for something else they have in stock), that you are aware of the invoice, holdback, etc., and that you're willing to make an easy, quick sale for them if they are willing to reflect a price that benefits you both. I don't know how it is where you live, but I live in California and from what I've seen, I wouldn't count on dipping into their holdback... you'll typically get laughed at. Toyotas typically sell well due to a high demand and buyers getting their vehicle at or under invoice is very rare. A little over invoice ($500 maybe) is usually a fair deal in both the buyer and seller's eyes. This, of course, depends on the availability, demand, and cost of the vehicle. Your $40,000 Limited might demand a little more, it just depends.

Once you get replies from the internet sales managers, review their "offers" and reply to them as necessary. If you get one to bite and produce a price that's acceptable, try taking that price and forwarding it to the other sales managers as an incentive to steal the deal. It's possible some can beat it, but maybe they can't. If that's the case, take your deal and run. It's all about getting exactly what you want for the right price. Be patient, know your facts, and make them work for you're business. There are plenty of 4Runners out there, so take your time and you'll get yours at a fair price.

Hope this helped.... good luck!

 

[LSUMBA]

Re: How to purchase new 4Runner

Hope this helped.... good luck!

Probably one of the best responses I have gotten to this question on all the boards I asked it on. Thanks!

 

[T4RMatt]

Re: How to purchase new 4Runner

A little over invoice ($500 maybe) is usually a fair deal in both the buyer and seller's eyes.

I agree with you on this....but this would mean the dealer was making something like $1500 which is about enough to make most people on this board croak. But they have to make something to stay open.....it is no different than any other sort of retail business. Anyhow, also remember that a salesman is less likely to try and take advantage of you if he knows that you are an informed consumer.

 

[LSUMBA]

Re: Re: How to purchase new 4Runner

I agree with you on this....but this would mean the dealer was making something like $1500 which is about enough to make most people on this board croak. But they have to make something to stay open.

I was thinking that a little over $1000 profit total (holdback + $$ over invoice) sounds fair to me. I would be happy to pay up to $1500 total if the dealer did enough to impress me & make me think it is worth it.

Does anyone know what Toyota's exact holdback structure is? Everything I have read says to use 3% for American cars & 2% for foreign cars as a general rule of thumb.

also remember that a salesman is less likely to try and take advantage of you if he knows that you are an informed consumer.

How would you go about this in a letter to the dealer? Apparently I do not want to show my hand too soon & let them know what I am willing to pay. But I don't want them to come in close to MSRP either & then we have to play the back & forth game on negotiations.

 

[Jeff Kleb]

Since dealers like to bullsh*t people - and it is part of the car culture, you may want to try to play their game. Be up front about what kind of car you want, don't talk trade-ins (even if you plan on schlepping off your old car to them), let them know you have done your homework and that you have your own financing.

When they come up with a fair price, let them sit for a day or two...and then tell them that you were able to beat it by $600 or $700, but that the other dealer was a considerable distance away. Say that you would rather do business with the local guy since he is closer; but that you'll "split the difference" if he'll sell it with no hidden extras.

It may work and it may not......but you won't know unless you try. Remember that you can't expect them to sell their cars at zero profit, but that you don't want to put his kids through college either!

 

[BROOKLYN]

i would suggest to walk into a dealership near you and start neg. below the price you want. let them work there way up to the price that you have already set in your mind. if its reasonable there take it if not there many others who will

 

[BROOKLYN]

also the end of the month is always at there desprite time

 

[00328]

I would tend to think that $500. over invoice is a pretty fair deal.

 

[Jim_Chow]

I'm sure they'll ask how you plan to pay for the car. Do not tell them (give an evasive answer like a politician), because if you say you're paying cash or have your own financing, they are less likely to give you a good price. They have to make money either from the sale (paying above invoice), sale of profitable options, profits from dealer financing, or a trade-in. Either way, the money has to come from somewhere. A friend of mine and I bought the exact same car back in '00 and '01 in LA, same color (silver, high demand). He got an internet price of $75 over invoice since the dealer was one of those mega dealers that was required to sell X cars per month to maintain their discount from the car maker. I bought in the final model year at the end of the summer, but could only muster $350 over invoice at a dealer across town. And that was hard fought. Only after I agreed to buy lo-jack for $800 did they accept the offer (paid cash, no trade-in). Otherwise, they wanted like $750 over invoice. Another thing...get the price quotes near the end of the month. Most dealers have sales quotas or targets, so they tend to deal more on the last weekend of the month (or on a monday, say Oct 31), if it's the last day of the month.

 

[MsMarine]

That all sounds complicated. I did the internet thing got a iQuote at 500 under invoice. Went in did a test drive and walked out happy.

Not like the first two dealerships where I left in tears. Ended up the iQuote I got was the best deal. I should have just started and ended there.

In the end I think I got a good deal and the dealership was just fantastic.
Rancho Santa Margarita Ford.. Oh and the Indy car in the lobby is sweet too.

 

[LAT4R]

Re: Re: Re: How to purchase new 4Runner

Does anyone know what Toyota's exact holdback structure is? Everything I have read says to use 3% for American cars & 2% for foreign cars as a general rule of thumb.[/B]

Toyota Dealer Hold back is 2% of MSRP, excluding the destination charge and any additional accessories or options

 

[T4RMatt]

Re: Re: Re: Re: How to purchase new 4Runner

Also, be careful of that little add on sheet next to the window sticker. Some dealers add these and they are nothing but garbage. Always insist the dealer just ignore that it even exists. It is nothing but a gimick and way to make money.

 

[boston_kevin]

my experience

Use the Internet to get pricing for everything you want. Have a list of what you can and cannot live without (if you are special ordering, this becomes less important), the time frame you want the car, then email dealers in your area and neighboring states. Not that you want to travel there to get the deal, but this becomes a bargaining chip for you when you want to go to the dealer.

Once you have all of your information, go into the dealer, tell them here is what you want (hand the options sheet to them with no prices) then give them the lowest price you found from the Internet and your emails but subtract $500 if it is invoice or higher (before you give them the price), this becomes some wiggle room. Tell them that you would rather support your local dealer and be able to give your friends and neighbors a good reference when they see this new truck in your driveway or at work, so you are willing to work with them to a point, but you have a quote for this exact vehicle from an Internet buying service at the price you gave them. Most dealers will be willing to work with you and get you the price you want.

I got my SR5 off the lot at the end of the month for $25k (msrp was $31k). Just looked at Kelly Blue Book and the value on this vehicle is still over $25k for a private party sale.

Good luck!!