2012 Tacoma - Dealer Markup

Hi all:

I'm pretty much set on purchasing a new 2012 Tacoma 4WD Double Cab, with 6ft bed. Because I want Spruce Mica, I'm forced into ordering, but I'm cool with that. I've already been given the green light from my dealer's finance dept that they can work with me, but I've not yet put pen to paper, to see how it's all gonna work out. While browsing the lot this weekend, checking out what the different packages offer (TRD Sport VS TRD Offroad), I saw the dreaded "Market Adjustment" listed on the sticker. It was roughly $3k across the board, which equates to about 10% over MSRP. Is this normal?

I'm a pretty bad negotiator, so I don't know what it's gonna take to be successful at coming off that sticker price. But, I also wonder how they can justify the markup.

*Is this their way of saying "The economy is getting better, so we're gonna charge you for it"?

*Or, is it because they've not yet gotten the 2013 models on the lot, so 2012's are still running a premium?

*Because I'm ordering a truck they don't have on the lot, am I Out-Of-Luck trying to negotiate much off that price?

*Since I'm financing, but with a ~30% down payment, do I have any leverage on the price, or are they gonna try to stick to the "what payment do you want to see" tactic?

I'm sorry for all the questions. I've not bought a brand new vehicle since 1992, and I didn't negotiate on that one either. ('91 5.0L Mustang LX) I appreciate any advice y'all have!!

 

Screw them. They tried to get me with a "dealer" markup and I told him to screw themselves.

 

If the dealer knows you really want the truck, it will be harder to negotiate down. Unfortunately, when you custom order a truck they know you really want it. it will always be easier to negotiate on stock, especially stock that's been sitting on the lot for a while, than negotiating a custom order. However, a sale is a sale, and they still want to make money off your business. I would just find what the avg price paid for your vehicle and trim is in your area. You can find this online at edmunds and cars.com etc...Bring this number with you and set that as your target. However, if accessories or special items are included in your order, you need to take this into account.

In short, you will hear a hundred 'expert' opinions on how to negotiate but there is no formula. Your chances of getting the best deal is more related to how slow a dealer is in moving stock and what current incentives there are more than anything else. Nobody here can tell you this and you can also find this info on line by looking at avg days on lots. Your best bet is to find dealers that have slow-moving stock.

Remember, though, that you need to be realistic. The dealer has to make a profit so don't expect to make any demand and say take it or leave it. They are running a business and not a charity so you have to allow them some profit and marke-up.

I have no number to give. Again, it all depends on trim and what you are ordering extra. Do the research I suggested and shop a few dealers, not just the one closest to you. Anything anyone else offers is just guesswork. Auto sales are regional and just ebcause one person says he got a deal for such and such an amount doesn't mean you will in your area.

Another thing to consider that very few people do--you may haggle the dealer to death and get near where you want to be. But sometimes, this may mean the difference between an attentive dealer with good post-sales experience and issue resolution or a dealer that doesn't care.

 

Yea, find another dealer, or flat out tell that one if they want your business you're not paying a dealer mark up. It's not like you're going after some brand new in demand rare vehicle. Even if you're a bad negotiator at the very least you should come in with an OTD price after all is said and done that's under MSRP. I had to wait for mine but didn't order they located one for me from another lot that was getting in the exact truck I wanted in a month. Just worked a deal for my grandmother as well on a Rav4 they had to go and locate and still came in with a solid deal as well too.

In short, fuck 'em.

 

When I say "order", I use that term loosely. I think the sales guy told me they found one at another dealer and it'd take 3-4 weeks to be delivered.

Re: dealer profit. Yes, I totally understand their need to run a business / make money. I'm a business owner, so I know they don't just give these things away. There are bills to pay, etc. That's not really my concern. I'm the buyer and they have a product I want. It's up to me whether I want to pay what they want. And, it's up to them whether they want to sell at the price I want to pay. LOL I'll check those sites and see what's going on. Thank you!

 

Absolutely do NOT pay one dollar over sticker.

But really, you oughta get them to order it for you for no more than 500 over invoice. 200 over invoice is pretty common on factory/fleet orders from big dealers in major urban areas.

Basically, the easiest way to win here is to open up the dialog via email instead of walking in and sitting down on a couch amongst the sharks. That'll get you over to their "internet/fleet" sales guys who tend to operate a little differently, assuming they're working with reasonably savvy customers.

Just be cautious when you sit down with the finance guy to close. He'll offer you all kinds of "really good deals" on "really good stuff" for "really great reasons."

Be skeptical, and if he shows you something you've gotta have, be aware all THAT stuff is negotiable too.

 

It's really the same scenario, unfortunately, They know you want that truck pretty bad so it will be harder to convince the dealer that your sale is contingent upon them accepting your price. You CAN negotiate the price down some. It will just be more difficult than if it is stock already on the lot.

 

I actually submitted the finance application before I even went to the dealer, and IIRC, the internet guy is who I'm dealing with at the lot. Nice guy, doesn't seem too pushy, although he came across a little pushy over the phone when I told him how much cash I was putting down.

Yeah, the finance guys are sales folks, too. I bought my wife a used Honda Odyssey last year and their finance dude tried to sell us on the protection package, etc. No. No. No. LOL

 

I see you were active duty at one point. Create an account with USAA and try their car buying program. It saved me A LOT for my truck.

 

I ordered mine, special order not dealer trade, and negotiated with Internet sales team to $500 below invoice.

SOME dealers will work with you.

 

I've had real good luck with an on-line "broker" (don't let the term scare you off). Go to TrueCar, build your vehicle, and the site will give you a lot of info on pricing. It will also tell you which dealers in your area subscribe to TrueCar. There is no fee for using this service. Print out the info and contact the fleet manager of a participating dealer. I used TrueCar on two purchases thus far. My 2011 Tacoma I purchased for $500 over dealer COST!!! Good luck.

 

"Broker" won't scare me. I'm a real estate broker. LOL

 

Absolutely, positively, DO NOT pay a dime of the "dealer markup." It's 110% profit, pure and simple. My closest dealer had a $3K dealer markup, along with another $1800 for pinstripes, locking lugnuts and an alarm. Pure nonsense. I ended up driving to another dealer an hour and a half down the road for a price I was happy with ($1001 under invoice.) On top of that, I got a $500 military rebate and another $1000 recent college grad rebate.

Go to http://www.truecar.com. I have no doubt you can find a similar deal near you. Don't let your desire for this truck override common sense. Avoid this dealer like the plague....

Edit: I just noticed you are located in Jacksonville. Give me a buzz and I'll give you some gouge on the dealership I went to. Stay the hell away from Keith Pierson, which I'm sure is the dealership you went to. They are HORRIBLE. I saved thousands by going to Ocala.

 

When I recently bought mine, i found it on the Internet and sent the dealership a message. The Internet manager called me and then sent an Internet price quote. The price was about 3k below the sticker. I then went to the USAA site and did a comparison feature by feature to that on the Internet quote. Surprisingly the Internet quote was right on par with the USAA car buying service quote.

But, I agree, get a USAA membership and then go to the car buying feature. Option out your vehicle and they'll give you a price. Then take the USAA quote to your dealership. That will be the price you should then pay for your new truck.

Good Luck!

 

I'm a USAA member. I was originally going to go with the USAA program, but then found that truecar.com was a better price. Check out both, though, and see if that has changed. It's been almost a year since I bought mine.

 

Find out what the USAA price is, but don't let the shysters know that you're a member until AFTER they give you their quote. When I bought my Taco I got the dealer's price, the USAA price and the Costco member price. Costco beat them both and saved me $1700 off the dealer's quote.

 

You will have to scrap this dealer and move on to another...

Know your costs Here--> http://start.chromecarbook.com/ccb.jsp?ccbId=503374

Current incentives--> http://www.edmunds.com/car-incentives/


$500 over invoice is fair , minus any incentives. Your questioning everything and its making your head spin , because it made mine just reading it. MAN UP ALREADY, STAND YOUR GROUND ON THE PRICE !!! Not rocket science. If not move on..and tell them your going somewhere else. Then watch how fast they call you back... try it !!

Be Nice... Not arrogant.

 

Oh yeah one more thing, In Florida Car dealers have Huge Dealer doc fees, usually around $500.00 ..JUST SAY NO THANKS !! There is more than enough Toyota dealers in Florida.

$100-200 Dealer doc fee is more than Fair.More than that is not acceptable.

 

Be afraid. Be very afraid. LOL