Truths and Negotiating Tips

I am in the market for a brand new pickup. One vehicle I am strongly considering is a 2013 access cab/4 x 4/4 cyl/5 speed manual/SR5. Sticker on this vehicle is $26,915.00. Several weeks ago when I inquired about this vehicle (via the internet) I was quoted a price of $25,842.00. Recently I test drove it and dealer called me the next day and wont budge off the $25,842.00 price they quoted. Says that is the invoice price. That figure is approx. 4% off MSRP. Also stated that Toyota only marks up its vehicles 1%-2%. If that is true then the reduced price would already be below invoice,which I suspect it is not. An internet search put the invoice of this particular truck at $25,2??.00. I have also heard Toyota marks its vehicles up 7% which would put the invoice just above $25,000.00 The sales team says both those figures are not accurate and sticks to their 1%-2% story. Any experience or opinions on this matter?
By the way this particular vehicle has been on their lot for 3 months and recently when I went past the dealership I noticed approx. a dozen Toyota trucks that are fresh in. They still have the paper covering the windshields etc. I suspect these are 2014's. So this puts this particular vehicle very close to last years model.

 

Money aside, I would like to take this moment to suggest bumping up the 6cyl. Ive owned the 2.7 4x4 in a reg cab and it was a great engine but slow. Highway headwinds were a PITA. When paying 25,000ish, it is worth paying a few more bucks for more power and a truck that can accept larger wheels without KILLING mpgs. My .02

 

Several people have suggested getting the six cyl. I have also researched many threads from those with the 4 cyl and while not powerful or considered fast it is adequate. If I purchase this Tacoma I am pretty much set on the 4 cyl. I don't drive fast in my daily drivers anyway. Plus it will be slightly cheaper for insurance and maintenance. A couple more MPG won't hurt either. If I were going to step up to the six cyl I think I would lean towards a full size truck with an 8 cyl.

 

I'd offer $25,000 (flat) and if they decline, then I'd say let's split the difference and go to $25,400. Dealerships are very aggressive initially, but if you're patient you'll ultimately get the truck for the price that makes you happy. Also, looks like they just got the 2014's in so they'll be more inclined to clear out the 2013's etc.

Good luck!

 

Funny you should mention that figure as that is what I did offer them. One salesman stated $25,000.00 simply can't be done. I think that figure may be below their cost but not by much.

 

$2000 off sticker is NOT hurting them. I got my 2010 brand new with $4,000 off the sticker. I also got 2 years maintenance (before that was standard) and 0% for 3 years. And they still made money. In addition to markup, they have dealer hold backs, try to get money out of you with financing, and your trade in. If a dealer offered me a deal with only about $1000 off sticker, I'd laugh at them and never go back to that dealer. Trust me, I did it myself with a dealer or two when I bought my taco. If that's all they're offering, they don't want to really get down to dealing.

I'd be offering less than $25,000 is the sticker was $27,000. If they think you're being unreasonable, I would like to know what they're smoking. The key to negotiating with these guys is to not give a crap on whether or not you'll be buying the vehicle. They need to know that you don't NEED the truck and aren't emotionally invested in buying it.

 

I would go to a different dealer and see if they budge. I went to a dealer for my truck and they only went down 400 on price saying thats all they could do. I went to another dealer and they took 2k off the msrp. Dealers have an invoice price from toyota but that price is reduced if they move the product within 90 days of it arriving at the dealer. Also the invoice price changes with the final purchase price. Just say you will go somewhere else for the truck. Any dealer that won't budge 800 bucks won't be in business very long.

 

Tell them a another local dealer has a similar or the same truck for less then they do. They might make another offer.

 

I think your guess on invoice is correct. Paying $500 over invoice is a reasonable deal for both parties. Sometimes you can do better, but their quote seems like a fair one to me. They would probably take 25.7K.

 

Toyota hasn't announced the 2014 Tacomas guys...those aren't 2014s.

 

Paying 25k seems more than fair. The dealership will still make money with paperwork fees and such. I paid $699 for a dude to hit print and circle places for me to sign and initial.

 

I don't think any dealer would take receipt of a dozen 2013's this late in the model year unless Toyota offered them some incentive or "no loss" situation for the dealer. Most people shopping for a new vehicle this late in the model year either are looking for steep discounts in price of the soon to be year old model or want the new model year. This is especially true for those that only keep their vehicles 2-5 years. At that length of time the model year is very much a factor. Beyond five years the model year takes a back seat to condition and mileage.
By the way these dozen trucks weren't there 4 days ago.

 

Seriously, those are not 2014's. In the case of the Tacoma, it probably doesn't matter much anyway until the new design comes out -- very little difference between year models.

Just the fact that they have several on the lot should help your negotiatiions, though.

 

No 2014 Toyota's out yet

 

+1, they have not even started to make them yet. Might be mix of customer orders and trucks they know will move. Distributor (if one) may be pushing them. I would try for 10% off sticker. Tell them that is what others are paying because they are. I would not use another dealer has it. They know what all the local dealers have or can find out.

 

I'll have whatever you're having...

 

This link is just a standard credit union car purchaser way to save a bit of money. I'tll give you a real good idea of what "fair" price is.

http://www.cu-autosolution.com/newCars/

hit "new cars" and build. It might be possible to go lower yet based on 3 month on the lot, and 2014s out.




Advice on buying from dealers (most want to hype you up n shake your wallet out):

Have $$$ to buy down the price. $10k can loosen things up.

sell your own trade in , they like to play too many number games already.

Check the estimates on the trade, if you do, they always try to slip lesser options/years in

Go on Friday, having eaten already, they want to get out, you're in charge somewhat.

Don't have any emotions, think as if its a financial move, not a want.

Don't go straight for what you want, look at tundra, but then buy your Tacoma.

Bring paper, calculator, real or fake Nissan & Ford pricings you looked at prior

drive away today?..... no next week is fine.

Noisy wife n kids +++ , wife pretending to dislike ++++

Dress modest, not flashy like you are rich.

go in "just looking" , but take their invite to deal slowly if you are ready.

DON'T fall for the numbers games.... "what can you afford a month".. They'll try to get you to say $500, then they got ya, and try to drop 84 or so months. have the estimated payments and terms for a given rate written already so you can call them on bad numbers. When they asked if I can afford $500 , I said sure , 24 month term right? The number game is huge, they will try to wear you down. At the weary point , just tell them you were here to "just look" continue another day.

 

Edmunds true market is $25,382.

 

I have a 2014 on order and they are saying mid September and all the dealers I spoke to are saying September as well for 2014 model. I heard fleet sales will go out first but thats probably early September if true.

 

I'd say take a look at USAA's car buying service or if you're not a usaa member try Truecar. That will give you a good idea on a fair market value. As far as negotiation, while its better to work from invoice up, asking to see the invoice won't always work because they can write up a fake invoice sheet. Some dealers have tried to do that when doing the factory employee discount. Do as much research from third parties as possible for real invoice information.

Also, dealer profits come more so from back end deals and all the 100% profit from extended warranties, gap insurance, and so forth. Finance managers often make more for dealerships than the vehicle salespeople do. So don't forget that you can negotiate those prices as well should you decide on purchasing those things.

Lastly, not every dealer is out to get you, but still be wary because its the nature of dealerships to try and make money any way possible. For example I've found that dealers will try and pad cost of installation on accessories as well.

Just be knowledgable on what you're buying, know the costs, and know what you want to pay and don't budge.