Lets clear the "air" about "OTD"

I traded in my blacked out Challenger because all the calls I got on it were from gang bangers asking if it had Reems. Plus The trade in was the same price I was asking, and I think you save on taxes or something when you trade in.

 

Mine was easy, no trade in or financing or anything.

2017 DCSB SR5 4cyl
W/ appearance package
Carpet mats

$25,079 before TTL. TTL in AR is not paid at the dealership anyways. I rolled the dealership fee into negotiations.

 

Agreeded

 

I agreeded toos.

 

I personally do the purchase calculations both ways before entering the dealer, once assuming I trade and once assuming I do a private sale. If the incremental cost of trading is $1k or less, I figure it is a convenience charge and I go try to do the trade. Selling a car privately can be a PITA.

I always develop a spreadsheet and have it with me when I go in to negotiate. Having pre-worked the math, I typically tell them I'll give them the keys/title for the trade and a check for $X OTD. Then they can work the trade vs new car values any way they want so long as I only write a check for $X OTD. This strategy is clean and works well for me. It is frustrating for the sales guy though because he would prefer two numbers.

As I said before, on a new vehicle, I typically embed an offer of $300 over invoice minus incentives in $X. That leaves plenty of profit (holdback + $300). I typically use an average of KBB and Edmunds excellent condition trade-in values for the used car part of $X.

 

Same in Mo., except that it varies by the city and county you live in without regards to where you bought it.

 

Great way to handle dealing! You USE your head before you LOSE your shirt!

 

There are worse ways to do it, and I know with decent accuracy what I am personally leaving on the table (holdback, $300, difference between private-party and trade-in minus tax benefits). It's not really losing the shirt, but more like taking it off and setting it there on the desk. I know where it is.

 

My opinion is always to keep it simple. Find out how much the dealership paid, either using the internet (NOT the "MSRP", the actual price, which is a bit more time consuming adding up all the options), or asking for invoice paperwork from the dealer. Be aware of factory to dealer incentives and subtract it from the invoice price. Calculate an appropriate profit for the dealer (3%-5%) and start negotiating. There are other fees like destination, DMV fees, which aren't really too negotiable. If you have a trade, never mention until after you've settled on a price for the vehicle you're buying. Also, try to be in a position to walk away. Whenever buying a new car, I have never NEEDED it, just WANTED it, so always easy to walk away.

 

Exactly, me too. I had two vehicles, an Impreza, and a 2500HD, both dealers offered me $24,000 cdn tax in. I sold them privately for $36,000. I think 12k was worth my time. Too top it off they both sold to the first person that looked at them!!