How to buy a new truck ?

It's people like this that give customers a bad name !

 

Tricks ??? Lmao

 

I couldn't disagree more. Why pay more than you have to? Maybe this is OK advice for someone who is afraid of the negotiation process but is brave enough to "try" for a bit better deal, but they will sell below this if you set it up right.

 

Invoice price is not the true dealer cost of the vehicle. Invoice minus holdback (I think toyota's holdback is 2% of the MSRP) minus any factory to dealer incentives. If you go in offering $500 over invoice, you're shortchanging yourself some savings. The reason dealers would snap that offer up is because it's likely more profitable for them over someone who's done their research on what the true cost of the vehicle is to the dealer and then made an offer that still makes the dealer a reasonable profit.

 

What do dealers pay for Tacomas? What's the breakdown?

Do dealers pay different amounts?

Is this information publicly available?

 

Truecar.com will show the factory invoice pricing, but it might not be up to date. It'll be in the ballpark. There are also services that you can pay to get more accurate information.

 

You are asking a very difficult question, it's not that simple. There are a lot of factors. Yes, a bigger dealer with more volume gets better price breaks. Why do you think there are so many dealers that have multiple dealerships in a chain? So they can pool buying power. Basically the factory approaches the sellers WAY before a given model year (right now they are probably doing it for 2019 for instance) and they ask them to commit to a certain number of units. They get price breaks (incentives) based on how many units they pre-order, becasue there is no risk for the factory to make them. The number people refer to as "invoice" is basically what it would cost for them to buy one unit from the factory without any incentives. But there is even more at play here, there are factory service contracts, extended warranties, they get a piece of the pie when they finance... there are also co-op dollars in play.. this is a complicated thing that only the dealership can know.

It works this way with almost anything you buy. Cars, powersports, shoes, bottled water...

 

One method is to say that you'll offer 5% above the true dealer cost of the vehicle, and explain you want to see the current factory to dealer invoices offered for your vehicle and take into consideration the holdback. 5% profit on a vehicle if the dealer knows you're 100% going to buy it sure seems like a pretty reasonable offer.

If they won't show you this, leave.

 

Dealers all pay the exact same. They work on a earn and turn basis for Toyota. So the more they sell the more they get. So building there allocation is always important .

 

I loved people like you, that thought they could " win " because they were great negotiators . 90% of the time people with your attitude paid the " home run" price one way or the other. Do you really believe you can do better then $500 over invoice ? Lol you do realize dealers sell scores of cars a month if not 100's . Kinda like saying you could get in the ring with Floyd Money Mayweather and win.

 

5% over 40,000 dollar truck heck yes a dealer will take that
A dealer wants to average 2000-3000 per car . That will help .

 

The happy faces are for the happy dealer at 5% over

 

I notice you left off whatever should be after "over". You snickered at someone mentioning dealer "tricks"... one of them is to try to convince customers that invoice price is the same as the dealer cost.

 

No you did not read everything I explained dealer holdback.

As far as dealer "tricks" that's pretty funny. Dealers don't need tricks to sell cars and trucks. They do it every day 5-10 20-25 and in some cases 100 or more times a day. Compared to your what ?? A few times in a lifetime ?
People that think dealers have tricks usually end up outsmarting themselves .

 

You seem to have great knowledge of the business. Do you have any buyer recommendations on how to best achieve a "fair" price? (Which begs the question, what is your definition of a "fair" price?)

 

This is the only time you mentioned holdback. Is this your explanation of holdback, just mentioning its existence? and immediately after trying to equate owners cost with the invoice. Huh.

"Tricks" includes trying to confuse dealer cost of a vehicle with the invoice price, or the shell game of raising and dropping either trade-in or purchase price but basically coming to the same number, or trying to work a deal based on monthly payments. I put tricks in quotes to try and imply these aren't nefarious, but rather sales techniques to maximize profits from uneducated customers. It's a strawman to say dealers need "tricks to sell cars"... nobody is saying that.

 

Trying to unconfuse people. At any rate $500 over is a great deal.but you should pay 5% over .

 

People usually come in confused by all the very poor advice they receive from "pro's " who have bought a few cars and now have it all figured out.

I'm out buy away folks and good luck with your strategies to beat the dealers.
Next you can go to Vegas and beat those dealers

 

Well, I paid less than $500 over invoice. And you're missing a word after "5% over" again. My guess is that's the unconfusing thing you think you are doing.

 

Rule #1: Don't go through the big glass doors to negotiate with a floor salesman. Only reasons to visit a dealership is for a test drive (then take his card, thank him, and LEAVE), and then later to pick up your car. Give that dealer a chance to give you a price when it is time to buy, but you owe him NOTHING other than a chance to win your business (if they treated you right and weren't douches on your test drive).

Rule #2: They are trained. So train yourself. Don't go into a battle against trained people as an unarmed and untrained "fighter".

Pick up the "fightingchance.com" package for the vehicle you want online. He goes into detail on all pricing (msrp and invoice), gives you examples of deals in your region and across the country, and gives step by step instruction on how to work a deal.

It's $30 or something like that. Money well spent.

Over 15 years ago, I bought his packet, and got my Gen 1 for more than $1k under invoice (back before manufacturers started including hidden dealer incentives). I remembered what I'd learned and bought a couple more certified pre-owned vehicles over the years, but when it came time to buy a new one again (my current Gen3), I picked up the updated packet. Things have changed.

Got my 2017 TRDORDC 4x4 in exactly the color and configuration I wanted for $491 under invoice in SoCal 4 months ago. When I test drove, salesmen were laughing at me when I rejected their advances to sell, and when they asked what I would pay I said "not a dime over invoice". That, they said, was not possible in SoCal, these trucks were going for MSRP as fast as they could get them on the lot (total b.s., just another floor sales tactic).

I didn't get the best deal around, but got a very respectable deal for a TRDOR 4x4 in SoCal. And didn't have to settle for something I wasn't 100% happy with (different color, wrong options, etc.).

Oh, they're still going to win (they WILL profit), but do you want to leave this scrap on a stretcher headed to the ER, or walk away with maybe a few scrapes ready to drive to dinner in your new car?

If you don't want to deal with the hassle, you can go through truecar or costco and maybe get a little below MSRP. But if you want the best deal available in your area, do your research and training. It may not be worth your time to save an additional $1500 or so. For me it was a fun challenge. And that $1,500 went towards a winch bumper and BD led light....not the dealer's pocket.